FNSCMP501 Assessment
Student name: |
For your assessment to be marked you must complete and upload all tasks and this cover sheet via the AAMC Training Group portal. Your assessment tasks must be uploaded in an electronic format i.e. Word, Excel, PDF or Scan. A maximum of five (5) attachments (maximum 20MB each) can be uploaded for this assessment. Please see the step-by-step instructions in your Member Area on how to upload assessments.
Once your assessment has been uploaded it will be pending review with your nominated course assessor and marked within 5-10 working days. You will receive an email advising you have been marked as “satisfactory” or “additional information required”.
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Checklist of attachments:
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☐ Online ☐ Virtual Class
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Phone: +61 (03) 9391 3643 / +61 (0)8 9344 4088 OR Email: [email protected]
CREDIT TRANSFERYou may be able to claim credit transfer for a unit/s of competency that you have previously completed with AAMC Training or another RTO. If you have been awarded a record of result or statement of attainment for any of the units detailed below then please go to the Credit Transfer tab in your Learning Centre and follow the prompts. This assessment relates to the following units of competency: FNSCMP501 Comply with financial services legislation Please refer to AAMC Training’s full Recognition Policy for further details. |
Task 1 – Knowledge Questions
The RG234 contains good practice when promoting financial products/services and credit products/services. The RG234 sets out the legal obligations to not make false or misleading statements or engage in misleading or deceptive conduct.
Your employer (MNO Financial Services Pty Ltd) has asked you (mortgage broker) to create an email to promote the mortgage broker business.
Select three correct answers on how a mortgage broker can ensure maintenance and currency of promotional information.
☐ Refer to the aggregator product information when selecting the product to ensure currency.
☐ Regularly review the products advertised; otherwise, the business you work for will be perceived as unprofessional.
☐ Always promote the cheapest interest rate, encouraging clients to call you to drum up business.
☐ A disclaimer stating: “Terms and conditions apply and the needs of the client has not been considered in the promotional material.”
☐ Promote the lender with the highest paying commission as you can maximise your return.
Your employer (MNO Financial Services Pty Ltd) has asked you (mortgage broker) to create an email to promote the mortgage broker business.
Referring to the Compliance, Regulation & Ethics Learner Guide under the section “Advertising”, list four items you need to consider when maintaining legislative, regulation and industry codes of practice in the email.
John and Davina have approached you to discuss their finances. You notice Davina seems to be intoxicated as she is slurring her words, is unable to make eye contact, unable to hold herself upright, and permeates a smell of alcohol.
Explain your obligations and ethical requirements you need to uphold when interviewing John and Davina.
A mortgage broker must keep John and Davina’s records as per the guidelines in the RG273.
Refer to the Compliance, Regulation & Ethics Learner Guide and list 4 records the RG 273 expects a mortgage broker to record.
In the initial interview, John and Davina Lovric requested a 3-year fixed interest rate of 2.59% pa to avoid any future interest rate rises and help them manage their repayments every month. After the home loan settled, they noticed that the fixed interest rate was 2.69% pa in their settlement letter.
John called the mortgage broker (Mr. Michael Horvat from MNO Financial Services Pty Ltd) on the 3rd of May 20XX, asking why the 3-year fixed-rate differed from the letter of offer they had signed. The mortgage broker on the 4th of May 20XX confirmed the 3-year fixed-rate Guaranteed Lock Fee was not selected. By not selecting the Guaranteed Lock Fee, the rate would be determined on the day of settlement.
The mortgage broker has checked the file notes stating John and Davina do not wish to guarantee the 3-year fixed rate. The notes read that they felt the rates would remain stable for some time and are not keen on paying the Guaranteed Lock Fee to secure the rate. John and Davina do not recall this conversation. John and Davina feel the mortgage broker is responsible as they thought they had nominated the Guarantee Lock Fee.
The mortgage broker is unable to assist further and has advised John and Davina on the 4th of May 20XX he will refer the matter to the owner of MNO Financial Services Pty Ltd. John and Davina are happy to refer the matter to MNO Financial Services Pty Ltd regarding the fixed interest rate on their home loan. They would like the interest rate amended to 2.59% or receive some form of compensation of $350 dollars per year for the interest rate difference.
After investigating the file, MNO Financial Services Pty Ltd had difficulty assessing who was at fault, so they decided to pay the clients annual package fee of $350 over the next three years as a gesture and goodwill.
Complete the Complaints Register Form and the Internal Dispute Resolution Form below.
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COMPLAINTS REGISTER FORM |
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Date complaint received |
Client name/s |
Type of complaint/ dispute |
Handled by whom |
Outcome (Satisfactory) |
Date of transfer and the person who will action the complaint |
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INTERNAL DISPUTE RESOLUTION FORM |
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Name and contact details |
Primary consumer |
Secondary consumer |
First name |
John |
Davina |
Last name |
Lovric |
Lovric |
Date of birth |
23/02/82 |
28/7/83 |
Postal Address |
8 Ben St, Suburb, VIC 3000 |
8 Ben St, Suburb, VIC 3000 |
Email Address |
[email protected] |
[email protected] |
Main telephone number |
XXXX XXX XXX |
XXXX XXX YYY |
Alternative telephone number |
03 XXXX XXXX |
03 XXXX XXXX |
Preferred method of contact |
☒ Email ☐ Post |
☒ Email ☐ Post |
Select any that you identify yourself as: |
☐ Aboriginal☐ Torres Strait Islander |
☐ Aboriginal☐ Torres Strait Islander |
(Optional) Do you need any special assistance with your complaint?Please select any relevant |
☐ Hearing☐ Vision☐ Physical☐ Speech☐ Other: |
☐ Hearing☐ Vision☐ Physical☐ Speech☐ Other: |
Do you need an interpreter?If YES, which language? |
☐ Yes ☒ No |
☐ Yes ☒ No |
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Third Party Details |
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Please fill out this form if you want another person or company to represent you in managing this complaint.If you complete this form, the finance broker will send all correspondence to the person you have nominated and not to you. If the finance broker cannot contact that person, he/she may contact you using the details you gave above. |
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Organisation name |
MNO Financial Services Pty Ltd |
Contact name |
Peter Normanby |
Postal address |
36 Carmel Drive, Suburb, XXX |
Email address |
[email protected] |
Telephone number |
XX XXXX XXXX |
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Details of the product/service you received |
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What is the name of the person or business you are complaining about? |
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What type of product did the person or business provide to you? |
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☐ Mortgage |
☐ Personal Loan |
☐ Financial advice |
☐ Credit card |
☐ Lease |
☐ Not sure |
☐ Other: |
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What was the main purpose of this product? |
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☐ Personal |
☐ Business |
☐ Investment |
☐ Other: |
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Names on the account: |
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Account or reference number: |
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Are you lodging this complaint on behalf of your business? |
☐ Yes ☐ No |
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Name of your business |
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How did you hear about us? |
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☐ ASIC |
☐ Internet search |
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☐ Person or business you are complaining about |
☐ Australian Financial Complaints Authority (AFCA) |
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☐ Financial counsellor |
☐ Credit repair company |
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☐ Community legal centre / Legal Aid |
☐ Other Ombudsman |
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☐ Legal Private |
☐ Word of mouth |
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☐ Other: |
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Complaint summary |
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When did you first realise there was a problem? |
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Have you asked the person or business you are complaining about to fix the problem? |
☐ Yes ☐ No |
If YES, approximately when? |
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Did the person or business respond to your complaint? |
☐ Yes ☐ No |
If YES, approximately when? |
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Describe your complaint. Tell us:• what happened,• when it happened,• who you think is responsible. |
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How would you like your complaint to be resolved? |
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Part of your mortgage broker agreement is that you hold Professional Indemnity. When completing the File Notes, Michael Horvat abided by the industry code of practice. The File Notes are a form of documentation to record conversations and actions taken by the mortgage broker. The File Notes showed the conversation with the clients concerning the Guaranteed Lock Fee.
Refer to the AntiRisk Professional Indemnity Certificate of Currency below and analyse whether the mortgage broker, Mr. Micheal Horvat, should claim the $1,050 reimbursement ($350 X 3 years = $1,050).
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AntiRisk Professional Indemnity Certificate of Currency Certificate of insurance for training purposes
AntiRisk Professional Risk Underwriting Pty Ltd issues this Certificate under the authority granted to them by Risk International Australia (ABN 38 XXX XXX XXX). This certificate of insurance is not a substitute for the Policy and Schedule of Insurance issued to you. The Policy details Your rights and obligations and the extent of Your insurance cover. IN WITNESS WHEREOF, this Certificate was signed on the 20th day of October 202X. P Smith Authorised Signatory |
Refer to the AntiRisk Professional Indemnity Certificate of Currency above.
Would this policy have covered the mortgage broker if John and Davina took their complaint to AFCA? List the policy extension that may apply.