Reference no: EM132456307

FNSFMB504 Implement Complex Loan Structures - Mentor Education

EXERCISE 1

Question 1. Relevant Legislation.
Identify and outline the key features of the legislation relevant to the implementation of complex loan structures, including all relevant state and territory legislation, charges and taxes.

Question 2. Complex Features of a Client Situation and Needs.
Explain each of the following types of complex features that you may encounter in a client's situation or needs:
a. Commercial loans.
b. Chattel leases.
c. Native title rights.
d. Heritage issues.
e. Contaminated sites or properties near noxious industries.

Question 3. Complex Nature of Securities to Be Taken.
Explain the complex nature of the following:
a. The implications of borrowing against leased premises.
b. Multiple securities of differing kinds.
c. Rural land.
d. Specialised securities (such as hotels).

Question 4. Forms of Security to Be Taken For Complex Loan Structures.
Explain the following forms of security that are to be taken for complex loan structures:
a. The assignment of rental income to the lender.
b. Joint and several personal or related company guarantees.
c. Multiple mortgages.
d. Registered company charges.
e. Second mortgages.
f. The involvement of unit or family trusts as either borrowers or guarantors.

EXERCISE 2 - REPORT

For this task you are to complete the following steps to implement a complex loan structure on at least 1 occasion.

Complete the following steps to organise the implementation actions:

Question 1. Review the special or complex features of at least one clients situation for any implementation implications, including any high asset, income or expenditure requirements, any complex taxation, the nature and forms of securities to be taken, as well as any other legal or complex issues. Provide a copy of you review for this activity.

Question 2. Prioritise the implementation actions, planning the timing for each action and confirming that the activities are consistent with the needs and specifications of the client, and with legislation, industry regulations, organisational requirements and codes of practice. Provide a copy of the implementation plan and the method used to confirm the plan with your client.

Question 3. Clearly explain the implementation actions required by the client, and obtain written agreement from the client to proceed with the actions and establish the implementation records. Provide a copy of the written agreement.

Question 4. Implement the actions, using timing and priority to maximise the advantage for the client.

Perform the following steps to establish the appropriate procedures for implementation:

Question 5. Identify the relevant personnel, and brief them on the implementation of each action for loan structure, and on the completion of all internal and external documentation requirements. Provide a written outline of the information provided to relevant personnel.

Question 6. Effectively coordinate theimplementation actions that depend on or involve actions by other professionals. Outline any professionals involved in the process.

Question 7. Establish the monitoring procedures that will be used for monitoring the critical implementation timing and priorities. Outline the monitoring methods used in the process.

Complete the following steps to undertake and/or supervise implementation:
Question 8. Brief the client on the actions that are to be undertaken, and, where needed, provide assistance.

Question 9. As per the loan structure, issue instructions to internal and external personnel. Include the instructions provided.

Question 10. Where joint implementation is required, maintain consultation and monitoring with the other professionals, and check and follow up on the lodgement of documentation to ensure that the planned timings are met. Outline whether joint implementation was required.

Question 11. Obtain and process the fees and charges, in accordance with all organisational and legislative requirements. Outline the fees and charges required.

Question 12. Post-implementation, debrief the client and address any concerns that are raised. Provide a brief outline of the items discussed in the debriefing.

After you have successfully completed the above steps to implement a complex loan structure, you will need to sit down with your assessor and discuss:

Question 13. Any of the following complex features of the client situation:
a. Commercial loans.
b. Chattel leases.
c. Native title rights.
d. Heritage issues.
e. Contaminated sites or properties near noxious industries.

Question 14. Any of the following forms of security taken for complex loan structures:
a. Assignment of rental income to the lender.
b. Joint and several personal or related company guarantees.
c. Multiple mortgages.
d. Registered company charges.
e. Second mortgages.
f. The involvement of unit or family trusts as either borrowers or guarantors.

Question 15. The key features of the legislation relevant to the task completed, includingstate and territory legislation, charges and taxes.

Question 16. Time management techniques and tools used to support the implementation process.

EXERCISE 3 - RESEARCH TASK

To complete this task, you are to research the special or complex features of client situations, the information that you might use, planning techniques for manageing complex client situations and internal and external documentation management and recording and answer the following questions.

Question 1. What are the special or complex features of client's situation that will need to be identified for their implementation implications?

Question 2. What information might you use to prioritise you implementation actions?

Question 3. What information do you need to consider when you are planning the timing for each action in your implementation plan so that they are consistent with the needs and specifications of the client?

Question 4. What information must you consider and include when you are clearly explaining to the client the implementation actions required?

Question 5. Outline the requirements for obtaining written agreement from the client.

Question 6. Briefly discuss how timing and priority can be used throughout the implementation of actions to maximise advantage for the client.

Question 7. What information will you need to include in a brief for identified individuals for the implementation actions for the loan structure?

Question 8. What are the internal documentation requirements that may need to be completed for the complex loan structure implementation process?

Question 9. Discuss the external document requirements that may need to be completed for a complex loan structure implementation process.

Question 10. Why is it essential to coordinate any implementation actions that depend on or involve actions by other professionals?

Question 11. Identify and briefly discuss 3 of the time management techniques and tools that are suitable to use to support the implementation process.

Question 12. Why is it important to establish monitoring procedures for the critical implementation timing and priorities?

Question 13. List 5 of the actions that may need to be taken for the implementation, and that you would need to fully brief a client about.

Question 14. What assistance might you need to provide to the client throughout the implementation?

List 6 of the internal and external personnel you may need to issue instructions to, as per the loan structure.

Question 16. In what circumstance will you need to maintain consultation and monitoring with other professionals?

Question 17. What types of documentation might you need to follow up on the lodgement of?

Question 18. What types of fees and charges will you need to obtain and process, according to the organisational and legislative requirements?

Question 19. What range of factors will need to be discussed with the client during the post-implementation debrief?

Question 20. Outline a process that could be followed to address and respond to client concerns.

Question 21. Briefly discuss the documentation requirements relating to the following:
a. Disclaimers.
b. Disclosures.
c. Insurance policies.
d. Prospectuses.
e. Receipts.
f. Written advice.

Attachment:- IMPLEMENT COMPLEX LOAN STRUCTURES.rar