Reference no: EM132456255

FNSFMB502 Identify and Develop Broking Options For Clients With Complex Needs - Mentor Education

EXERCISE 1

Question 1. Relevant Legislation, Regulations and Codes of Practice.
In a manner that would be appropriate to include in the induction package of a new employee, identify and outline the legislation, regulations and codes of practice that affect the broking industry.

Question 2. Key Products Available In the Broking Industry.
Develop an information flier explaining at least 3 of the key products available in the broking industry.

Question 3. Organisational Guidelines and Procedures on Assessing Impact of Risks and Documenting Broking Recommendations.
Conduct some research and detail the common organisational guidelines and procedures that are to be applied for assessing the impact of risks and for documenting broking recommendations.

Question 4. Relevant Risk Issues.
In a manner that would be appropriate to include in the induction package of a new employee, explain the risk issues that relate to each of the following:
a. Borrowing risk and gearing.
b. Economic risk.
c. Specific product risk.
d. Institutional risk.
e. Risk factors and return expectations of the client.
f. Volatility of income and capital.

EXERCISE 2

THIRD PARTY REPORT

For this task you are to complete the following steps to identify and develop detailed broking options that are designed to maximise the client's outcomes and meet client needs, for at least 1 client who has complex needs.

Perform the following steps to identify the complex broking needs of the client:

Question 1. Meet with the client to discuss, review and clarify the special or complex features of their situation and needs. Provide a list of the complex needs and features of their situation to your assessor.

Question 2. Comprehensively and ethically, discuss and explore with the client their risk issues and tolerance, including unusual risks or requirements, and interdependencies and implications. Outline the risks identified to your assessor.

Question 3. Assess, according to the legislative requirements and organisational guidelines and procedures, the impact of risks to the client or the organisation, as required, engaging in further questioning and information gathering activities. Provide an outline of the impact of the above risks to your assessor.

Complete the following steps to research and consider broking solutions for the client, based on their needs:

Question 4. Analyse the current client situation to determine the opportunities and constraints. Provide an outline of the opportunities and constraints.

Question 5. Research loan structures or options, including those which are new or non-standard products. Provide a copy of the research you performed.

Question 6. Analyse the complex financial issues in terms of economics, legislation, taxation and insurance. Provide a copy of your analysis.

Question 7. Model, analyse and prioritise the options comparing the features, fees and charges, and risks. Provide a brief outline of the fees, charges and risks.

Question 8. Reject any inappropriate options. Discuss any options that you rejected.

Question 9. Check and test the preliminary options to ensure they are in compliance with relevant legislation, as well as regulatory and ethical guidelines, and assess its ability to successfully meet the needs of the client.

Perform the following steps to select appropriate options and gather the information required for the client to review:

Question 10. Select broking options for client review that are appropriate to their needs, and develop or obtain appropriate explanatory material. Provide a copy of the broking options you have deemed appropriate for your client.

Question 11. Consider, where required in the broking solution, referrals to an accountant, financial adviser or lawyer. Provide a list of referrals (if required).

Question 12. Develop and incorporate into the materials for the client your recommendations on risk management strategies, as well as a description of the anticipated fees and charges. Provide a copy of your recommendations.

Question 13. Include in the client material, information on the complaints resolution procedures, for both internal and external complaints. Provide a copy of the complaints resolution procedure.

Question 14. Document your broking recommendations and loan structures for presentation to the client in accordance with the organisational guidelines and procedure, providing a detailed analysis of the research strategies and findings, and a risk analysis. Provide the documentation you have completed as part of this assessment.

After you have successfully completed the above steps to identify and develop broking options for at least 1 client with complex needs, you will need to sit down with your assessor and discuss:

Question 15. Any of the following complex features that relate to the client situation and needs:
a. Commercial loans.
b. Chattel leases.
c. Native title rights.
d. Heritage issues.
e. Contaminated sites or properties near noxious industries.

Question 16. Any risk issues relevant to:
a. Borrowing risk and gearing.
b. Economic risk.
c. Specific product risk.
d. Institutional risk.
e. Volatility of income and capital.

Question 17. The organisational guidelines and procedures followed for assessing the impact of risks and for documenting your broking recommendations.

EXERCISE 2

QUESTIONS AND RESEARCH TASK

To complete this task, you are to research the complex features of client situations, risk issues, management and tolerance, ethics and loan structures and options. You will also need to analyse and prioritise the available options to clients, complaint resolution process and information provided to clients as part of your research.

Question 1. Identity and briefly explain the following types of complex features that you will need to discuss, review and clarify if they relate to a client situation and needs:
a. Commercial loans.
b. Chattel leases.
c. Native title rights.
d. Heritage issues.
e. Contaminated sites or properties near noxious industries.

Question 2. What information do you need to identify when you are exploring and discussing with client's risk issues and tolerance?

Question 3. Why is it important to ensure that discussions with clients are conducted comprehensively and ethically?

Question 4. Briefly explain how to use a risk profile to assess the impact of risks to the client or organisation.

Question 5. What methods could you use to engage in further questioning and information gathering if you have not gathered sufficient information to complete an adequate risk profile? Discuss at least 2.

Question 6. What are the areas of the client situation that you may need to analyse to determine their opportunities and constraints?

Question 7. Discuss 3 of the research methods you could use to research loan structures or options.

Question 8. What are the 4 areas that you need to analyse complex financial issues in terms of? Briefly describe each.

Question 9. Identify and define the information you will need to include and compare in your model to analyse and prioritise the available options.

Question 10. What will you need to do with the available options once you have the outcomes of your modelling?

Question 11. What are the requirements that you will need to check to ensure the preliminary options comply with?

Question 12. How can you assess the ability of the preliminary options to successfully meet client needs?

Question 13. What types of explanatory material could you develop or obtain to help clients review the selected broking options?

Question 14. Briefly discuss why you might consider a referral to each of the following in a broking situation:
a. Accountant.
b. Financial advisor.
c. Lawyer.

Question 15. List 3 examples of risk management strategy recommendations you may incorporate into your materials for the client.

Question 16. Why is it important to include a brief description of the anticipated fees and charges in your client materials?

Question 17. Briefly discuss the types of information that you would include on complaints resolution, both internal and external, in the client materials.

Question 18. What information should you include in your documented broking information and loan structures, to be presented to clients?

Attachment:- Identify and Develop Broking Options For Clients With Complex Needs.rar