Assessment name : MODULE 3 WRITTEN ASSESSMENT
Type of Assessment :This summative assessment will enable your assessor to make a judgement of competency based on the submission of your completed assessments against the requirements of the unit/s of competency in this module.
Benchmark :– The Assessment Benchmark developed for each unit of competency is the evidence criteria used to judge the quality of performance (i.e., the assessment decision-making rules). Assessors use these bench marks to make judgements on whether competency has been achieved and to determine if you have performed to the standard expected to meet the unit requirements.
FNSINC401 The Financial Services Industry Assessment
Unit/s assessed FNSINC401 Apply principles of professional practice to work in the financial services industry
BSBRSK401 Identify Risk and apply risk management process
FNSRSK501 Undertake risk identification
FNSRSK502 Assess risks
FNSCUS501 Develop and nurture relationships with clients, other professionals and third-party referrers
Reasonable Adjustment:
Where appropriate Monarch Institute will allow flexibility in the way in which each unit is assessed based on the needs of an individual.
Assessment Coding:
Assessment of this course is established on competency-based principles:
S = Satisfactory NS = Not Satisfactory
If you fail to perform satisfactorily for the assessment in the prescribed way you may be assessed as ‘Not Satisfactory. You are required to be assessed as ‘Satisfactory’ in all assessments for each unit of competency.
Re-assessment :
Your assessment can be submitted after you have reviewed the learning materials and practiced enough to feel confident in your re submission. You have two weeks from your last submission feedback to resubmit. You are re-assessed in only the areas where your assessor has indicated you were initially assessed as NS. It is at the assessor’s discretion to re-assess the entire assessment should an overall understanding not be demonstrated. When you are re-assessed as ‘satisfactory’ after re-submission you will achieve competency for this assessment.
FNSINC401 The Financial Services Assessment -Monarch Institute AU.
Submission instructions:
Complete the Declaration of Understanding and Authenticity (above).
Once you have completed all parts of this Assessment, login to the Monarch Learning Management System (LMS) to submit your assessment. In the LMS, click on the link to ‘Submit [assessment name]’ in your course and upload your assessment files. Click save and then click submit assignment. Please be sure to click ‘continue’ after clicking ‘submit assignment’.
Before you start
This assessment requires you to download some reference information from the Course website. You may find it helpful to download these documents before you begin.
Ways to successfully nurture your client relationships
Homeloan experts- mortgage broker leads
MFAA cpd
ASIC credit compliance tools
Risk Management template
Austrac risk management tool
ASNZS ISO Risk Management
Austrac approach to regulation
DHS environmental sustainability policy
EPA SA sustainability
ICD environmental sustainability policy
OECD sustainability
Activity 1
External forces that affect mortgage brokers
Before undertaking this activity, download from the course website:
Modules 1 & 3 Learner Guides
Read the following sections:
- Professional Practice (Module 3)
- The Credit Industry Participants (Module 1)
1.Provide a description, in your own words, of the following external factors that have an impact on the financial services industry.
2.For each factor, give an example of how it might affect your everyday work as a broker.
HINT: Think about how the external factor might:
- change your business opportunities
- affect the assistance you can offer clients
- change the conversations you have with clients
- influence clients’ decision-making
Activity 2
The financial system
Before undertaking this activity, download from the course website:
Module 3 Learner Guide
Read the following section:
- Professional Practice
1.Name at least there (3) main sectors of the financial services industry.
Hint: Name the sector, not the participants in a particular sector.
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2.For each of the sectors mentioned above, name another sector that crosses over with it, and the relationship in carrying out activities.
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3.In the first column below (participant), record the name of the financial services industry participant matching the role described.
Hint: This would be the professional that undertakes the role.
4.Use the internet to search for ‘personal loans’. Identify one bank personal loan provider and one non- bank provider. Compare the personal loan products.
Activity 3
Legislation regulation and codes of practice
1.Describe the different conventions and protocols when communicating with:
- A client
- A bank
- A regulator (such as AFCA or ASIC)
Hint: Describe the communication style and any adjustments for values, beliefs or cultural expectation of others.
2. Name the legislation that applies to the credit industry.
- Write the title of the Act
- Write a brief summary of what it’s about (one or two sentences is fine)
- Describe how you would apply this legislation
Hint: This is about legislation such as Acts, not regulatory guides.
3.Name two (2) sets of regulatory guides that apply to the credit industry.
- Write the title of the regulatory guide
- Write a brief summary of what they’re about (one or two sentences is fine)
- Describe how you would apply these regulatory guides.
4.Name a code of practice that applies to mortgage brokers.
- Write the full title of the code of practice.
- Write a brief summary of what it covers; one or two sentences are fine.
- Describe how you would apply this guide
Hint: This can be an industry, profession or banking code.
5.Give an example of how the first set of regulations you identified above (Q.3.) influences your job as a mortgage broker.
Hint: This is not about client impacts.
6.Give an example of how your job as a mortgage broker might be different if the second regulation you identified above (Q.3.) didn’t exist.
Hint: This is not about client impacts.
Briefly explain at least two (2) key requirements of the law and codes of practice around:
7.Consumer credit.
Hint: Think about the NCCP
8. Privacy
Hint: Think about the Privacy Act
9.Financial transaction reporting
Hint: Think about Austrac
10. Corporations in general (including accounting standards)
Hint: Think about ASIC and its general requirements, not just credit.
11. Financial services
Hint: Think about ASIC and its role in financial services, not just credit.
Activity 4
An ethical approach to decision-making
Before undertaking this activity, download from the course website:
Module 3 Learner Guide
Read the following section:
- Professional Practice
FNSINC401 The Financial Services Industry Assessment
There are several ethical principles and standards in business.
An ethical decision must be both legal and meet the shared standards or principles of the community – this is considered good business practice.
1.What ethical standards or code can be used by mortgage brokers?
Hint: Other than FBAA or MFAA codes.
2.Describe the three standards of Ethical behaviour listed in the FASEA Code of Ethics.
3.Describe an example of how you could apply an ethical approach to workplace practice and decisions.
Hint: Perhaps use a client who wants a home loan but has told you verbally that they may change career next year (with a drop in salary that may affect their ability to pay the new home loan). Do you just proceed with the loan application or?
4.Explain industry and business policy, procedures and ethical behaviours in regard to customer service and administration.
Activity 5
Sustainability in the finance and mortgage broking industry
Download (and read) the following resources from the Course website:
- OECD sustainability
- DHS environmental sustainability policy
- ICD environmental sustainability template
Also read the Professional practice section of the Module 3 Learner Guide.
1.Define sustainability in your own words.
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2.Describe and discuss the three (3) components of Triple Bottom Line principles with regard to work planning.
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3.How does triple bottom line reporting benefit a business?
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4.For each of the three (3) sustainability policies downloaded, describe briefly the strategies and impact on industry for each of the policies.
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FNSINC401 The Financial Services Assessment -Monarch Institute AU.
5.Download the resource ‘EPA SA sustainability’ from the Course website.
Discuss or describe this environmental/sustainability code of practice.
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6.Download from the Course website the resource ‘ICD environmental sustainability template’.Describe the principles and practices in terms of application to finance.
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7. Download the resource ‘OECD sustainability’.
Describe at least 2 tools or techniques used in sustainability management in terms of application to finance.
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8.List at least two (2) ways that a mortgage broking business can recognise and implement sustainability principles and practices.
Hint: Refer to the downloaded resources
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Activity 6
Information security and administration
Before undertaking this activity, download from the course website:
Module 1 Learner Guide
Read the following section:
- The Credit Industry Participants
1.Name one law or code, applicable to the finance and mortgage broking industry that relates to handling information securely.
Hint: Think about privacy
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2.What risk(s) is this law/code attempting to control?
Hint: Think about common examples as well as Australian Privacy Principles.
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3.Describe at least two (2) types of internal systems for storing and/or organising client information.
HINT: This can include digital and paper-based systems for client information or accounting for the business
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Activity 7
Planning work
Before undertaking this activity, download from the course website:
Module 3 Learner Guide
Read the following section:
- Business development
1.Why is business planning so important in today’s modern financial services industry?
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2.Describe what SMARTER means.
Hint: Explain what each letter represents and a brief summary of what it means.
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3.Imagine you’re planning out a busy day of work. You have ten tasks to complete, but you can only have enough time to complete eight.
Think about how long each task will take to complete, the resources you need to complete that task,who else is involved in completing the task, and the possible consequences of delaying the task.
FNSINC401 The Financial Services Industry Assessment
List the following tasks in the order that you would complete them:
Meeting with potential new client
Meeting with current client
Meeting with supervisor
Meeting with junior colleague
Phone call to loan officer at bank
Lunch break
Professional development webinar
Lender’s broker portal training session
Organising staff function
Coffee break
4.How did you decide which two (2) tasks could be delayed? Explain your answer.
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5.How did you decide which order to complete the tasks in? Explain your answer.
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6.Give an example of something you might do in your daily work as a broker that involves working independently.
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7.List at least two (2) resources or working conditions you would need to complete this task successfully by yourself?
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8.Give an example of something you might do that requires teamwork.
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9.List at least two (2) resources or working conditions you would need to involve the other members of your team in completing the task?
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FNSINC401 The Financial Services Assessment -Monarch Institute AU.
Activity 8
Planning an improvement at work
Background:
Your practice manager has just received the results of an anonymous client survey. The news is mostly pretty good.
However, the survey results also highlighted a few opportunities for improvement.
The whole office is meeting in a few days to discuss possible solutions.
In the meantime, you (and your colleagues) are expected to think about the points below and have ideas ready to present to the group.
Room for improvement
Too slow to contact leads (potential new clients)
Phone calls never seem to be at convenient time for clients
Saturday client appointments always run late
1.What action or actions could the team take to improve the time currently taken to call potential new clients?
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2.What do you think the team could do to make sure clients were called at convenient times?
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3.What could you do personally to help make sure Saturday appointments ran on schedule?
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4.What could you do personally to help make sure Saturday appointments ran on schedule?
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5.One of your colleagues has proposed using an online booking tool to change the way your team schedules client phone calls.
Describe how you would adapt to this different technology and new way of organising work and how you would organise the work.
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Activity 9
Develop and maintain practical competency
Before undertaking this activity, download from the course website:
Module 3 Learner Guide
Read the following section:
Business Development
1.Explain what professional development is and describe its purpose.
2.Identify three (3) methods of achieving professional development. For each one, explain how it can enhance your work capabilities.
Hint: Refer resource ‘MFAA CPD’ for typical CPD activities.
3.Explain what competency gaps are and explain how you can identify your competency gaps are.
4.How often should you review your professional development needs and progress? Explain your answer.
5.Name one (1) regulatory source you can visit to find out about your authorisation or licensing requirements.
Hint: Not one of the broker associations.
6.Who would you ask to clarify your authorisation or licensing requirements (be sure to discuss both internal and external sources)?
Hint: Not one of the broker associations.
7.Identify two (2) professional development opportunities that might suit the needs and goals of a newly qualified mortgage broker. Explain how/why each example would meet your needs.
8. Explain the time frame for seeking and completing CPD activities to maintain membership of the FBAA or MFAA.
Activity 10
Building business relationships
Before undertaking this activity, download from the course website:
Module 3 Learner Guide
Read the following section:
Business Development
1.Describe in your own words what it means to have effective interpersonal skills.
2.Describe, in your own words, the principles of effective negotiation.
3.Identify at least one (1) industry association you could join to help develop your relationships with other professionals.
4.Identify at least one (1) conference you might attend as an inexperienced broker to further your networking opportunities. Identify at least one other opportunity you might have to build professional relationships with either referrers, other professionals, or clients.
Hint: Look at one of the broker associations
5.Describe the key legislative, regulatory and codes of practice requirements around relationship management in the mortgage broking industry?
Hint: Think of client relationships and referrer relationships.
6.Describe effective communication.
7.Outline the social, business and ethical standards relevant to building relationships and business.
8.Explain the role of different communication channels and tools in relationship development.
9.Identify at least two (2) relevant business contexts for networking and relationship development.
Hint: Where could you seek networking and relationship development opportunities?
10.How would you monitor and introduce new ways to improve work relationships?
Hint: How would you know whether your relationships are profitable and how would you improve them
11.Write an email to the broker team explaining the new way to monitor and improve work relationships.
Hint: Describe and implement your answer to Q10.
12.How would you adapt to any special needs of clients, including cultural, language, race, religion,ethnic origin, socioeconomic status and demographic needs?
Hint: Use 2 examples:
1.A woman who recently experienced a bitter divorce and is still having difficulty planning her future.
2.A married couple from a non-English speaking background with basic English skills. You notice that they avoid direct eye contact when they speak to you.
FNSINC401 The Financial Services Industry Assessment
Activity 11
Risk identification knowledge
Before undertaking this activity, download from the course website:
Module 3 Learner Guide
Read the following section:
- Risk Management
1.Name at least two (2) internal stakeholders in a broking business and describe their roles in the risk identification process.
EXAMPLE:
Customer service staff: Can identify procedural issues with gathering financial information.
2.Name at least two (2) external stakeholders in a broking business and describe their roles in the risk identification process.
EXAMPLE:
External auditors: Can forensically review financial risk management processes.
3.Choose one of the stakeholders you’ve identified above. How would you go about asking them for their views and opinions? In your answer, make sure you cover how you’d adapt your style and method of communication based on the person’s position, seniority, background etc.
4.What is the ISO number of the current Australian Risk Management Standards?
5.Describe the purpose and key features of the Australian Standards for risk management.
6.Imagine you’re working in a broking business that needs to conduct a comprehensive review of its financial risk management standards. Where would you start and why?
Hint: Think about the process of identifying risk and who would you consult.
Imagine an internal stakeholder (customer service officer-CSO) you’ve spoken to has told you that they don’t think the business is making it easy enough for clients to submit evidence/information to support their loan applications. This is risky from a couple of different points of view; the client might discontinue their application, their application might not be successful, or the business might not cover its obligations with regards to customer identification and responsible lending.
7.In addition to the customer service officer’s opinion, what information would you need to gather to identify and clarify this risk properly?
8.How would you document what controls are in place already? This means measures or procedures to manage the risk. Explain your approach.
Hint: Any checklists or procedures that cover collection of supporting documents.
9.Through your inquiries, you’ve discovered that the controls in place include:
A document checklist
An SMS reminder service
Online document uploading portal
How would you work out whether those controls are effective or not? Explain your approach. Make sure you cover what your benchmark for ‘effective’ is.
Hint: How would you measure or record the extent of problems identified by the CSO
10. After analysing the current measures you’ve decided that the CSO is right – they’re not enough.
How would you convince the practice managers that you needed to implement more ways to make it convenient for clients to submit verified documentation? In your answer, discuss at least one (1) possible consequence, its likelihood, and its severity.
Hint: Refer to the evidence you collected in Q9
11.What is a ‘risk cluster’? Define this term in your own words.
12.Provide an example of a risk cluster that may arise in a broking business. Start with one (1) risk category and describe at least three (3) related risk subcategories.
Hint: You may find it useful to complete Practical Assessment activity 5 first which compiles your list of risks – use examples from that list
13.When reviewing risks, describe the business environment and boundaries of the review in consultation with stakeholders.
Hint: Refer to the list of risk categories as the boundaries of your review
14.Describe at least two (2) methods for identifying financial risks compared to legislative risks.
Hint: Look at how you would identify financial risks compared to Compliance risks.
15.Analyse and explain the key principles and practice of risk management and key terminology.
Hint: The steps in development of a Risk Management Plan.
16.Explain the key principles and importance of risk controls. i.e., risk control measures.
Hint: Think about managing the risk.
17.Explain risk mitigation strategies.
Hint: Think about the various strategies to manage risks.
18.Describe how you could investigate new and innovative ideas as a means to continuously improve risk management practices and processes through consultation and analytical thinking.
Hint: Think about how to monitor and review risks and ways to generate new ideas for risk management measures.
Activity 12
Explaining risk
Before undertaking this activity, download from the course website:
Module 3 Learner Guide
Read the following section:
- Risk Management
Background
A new office junior has just joined your team. They have no experience in the finance and mortgage broking industry.
Eventually, your managers want the junior to help with the administration of risk management policies,processes and documentation. They’ve asked you to help explain a few things to this new team member. For each of the points below, provide an explanation/answer of no more than 100 words. Remember to keep your explanations concise and easy to understand.
1.A technique for identifying risks.
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2.A technique for evaluating risks.
Hint: Think about the likelihood of a risk and the impact if the event occurs.
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3.An outline of the risk management procedure (in steps, starting with identifying the risk).
Hint: Think about the step-by-step process in bullet points.
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4.Provide at least four (4) areas of your business where risks are identified and provide an example for each.
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5.Explain the purpose and importance of having risk management standards in place.
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6.The key elements of the risk management standards.
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7.What happens when an auditor comes in to look at risk management?
Hint: The Monitoring/review stage
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8.Explain the use of the Australian Standard in risk identification and risk control.
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9.Outline at least one (1) legislative and regulatory context of the business in relation to risk management, as well as at least three (3) general risks.
Hint: Where does the broking business sit in the industry and what are the general risks
10.Describe the current economic climate relating to the finance industry.
Hint: Current news and current affairs
11.Describe the current political climate relating to the finance industry.
Hint: Current news and current affairs
FNSINC401 The Financial Services Industry Assessment
Activity 13
Risk assessment knowledge
Before undertaking this activity, download from the course website:
Module 3 Learner Guide
Read the following section:
Risk Management
1.Describe the two main criteria used when assessing risks.
2.Describe how to develop risk evaluation criteria, including tolerance levels.
Hint: Think about risk ratings and how frequently you would review risks based on their rating.
3.List the key principles of risk management contained in the Australian Risk Management Standards.
4.Define ‘risk appetite’ in your own words.
5.How would you describe the risk appetite of the Australian financial services industry today?
6.Research risk exposure levels in the financial services industry.Download these resource docs:
- Austrac approach to regulating
- ACCC advertising
Describe at least three (3) types of risks in these documents and comment on the probability of occurrence and impact.
FNSINC401 The Financial Services Industry Assessment
7.Describe at least three (3) risk exposure levels for the finance industry related to the regulatory obligations.
Activity 14
Risk management
Before undertaking this activity, download from the course website:
Module 3 Learner Guide
Read the following section:
FNSINC401 The Financial Services Industry Assessment
- Risk Management
1.Identify the context of risk management for mortgage brokers.
Hint: Think about general external and internal contexts.
2.Name at least two (2) risk management tools you can use to help you make sure you’ve identified every relevant risk in your working situation.
Hint: Think about two (2) regulator RMP templates that you could use.
3.When a critical risk issue appears that requires immediate action describe how you would make critical decisions quickly and intuitively to manage the complex risk.
Hint: Think about where you would record and assess the risk.
Activity 15
Monitoring and Reviewing the Risk Management Plan
Before undertaking this activity, download from the course website:
Module 3 Learner Guide
Read the following section:
Risk Management
1.Describe the Risk Management Plan Monitoring and Review process.
2.How often do you think you should review the success of the risk control measures in the RMP? Explain.
FNSINC401 The Financial Services Industry Assessment
3.If your review/s showed you were falling short on a particular risk prevention measure, what would you do? Use one of the control measure + measure of success combos you’ve drafted so far to come up with an example. In your answer, make sure you cover:
how you would record/document the result of the review
how you would identify who was responsible for the shortfall
your approach to making suggestions for improvement
4.Your business’s parent company has sent an internal auditor to look at your risk prevention measures. The auditor has no prior knowledge of the way your office works or what plans you have in place. How would you explain to them the risks that apply to your role, and the risk prevention measures you’re responsible for?
Hint: Just describe the plan document that details the risks and which apply to you.
5. What else could you do to be helpful to the auditor? Name at least one (1) way you could help make their job easier.
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