Identify and explain two duty of care considerations the fsp

Assignment Help Financial Accounting
Reference no: EM132903231

Mr and Mrs X applied for a low doc loan from a financial service provider (FSP) to refinance an existing loan and to obtain additional finance of $200,000 to assist them to purchase another property. Mr and Mrs X disclosed in their application: partnership income of $400,000, rental income of $40,000 and a parenting allowance of $20,000. The FSP approved their loan based on their income as disclosed in the application and their declaration that the loan was within their ability and capacity to service. The FSP did not make any independent enquiries to verify the application information.

Problem 1: Identify and explain 2 duty of care considerations the FSP should have displayed in assessing the applicants' capacity.

Reference no: EM132903231

Questions Cloud

Prepare cost of production : During the second month, you plan to produce 110 products but expect sales in the month to be 115 products. Prepare cost of production
About the expectancy theory : Briefly share why as a manager, you should care about the Expectancy Theory?
What dollar amount would initially be recorded : The owners of a new venture have decided to organize as a corporation. What dollar amount would initially be recorded in the common stock account
Disruptive innovator with respect to blockbuster : Describe how Netflix was a "disruptive innovator" with respect to Blockbuster? What were the sources of Netflix's risk of failure at video downloading/streaming
Identify and explain two duty of care considerations the fsp : Mr and Mrs X applied for a low doc loan. Identify and explain 2 duty of care considerations the FSP should have displayed in assessing the applicants' capacity.
Discuss using environmental management : You have been appointed as the new environmental manager for Microsoft. discuss using environmental management as a competitive advantage.
Explain three key benefits pds provide to financial sector : Explain 3 key benefits PDS's provide to financial sector consumers. (Describe the key features of: organisation's financial products and services).
Netflix was disruptive innovator with respect to blockbuster : Describe how Netflix was a "disruptive innovator" with respect to Blockbuster?
How much will janet have at the end of twenty-five years : Janet plans on saving $2,000 a year and expects to earn7.5 percent annually. How much will Janet have at the end of twenty-five years if she earns

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd