© 2023 The National Finance Institute FNS50322 Assessments – V.030123
FNS50322 ASSESSMENT
Part 3 – Learning Activities and Assignments
for
FNS50322 Diploma of Finance and Mortgage Broking Management
Successful completion of the online Learning Activity questions and the 5 Assignments that
follow will qualify the trainee for the FNS50322 Diploma of Finance and Mortgage Broking
Management
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© 2023 The National Finance Institute FNS50322 Assessments – V.030123
PART 3 – ASSESSMENTS
I N D E X
Summary of Contents…………………………………………………………………………………………………3
How to Submit your Assessment Tasks…………………………………………………………………………5
Frequently Asked Questions………………………………………………………………………………………..5
ASSIGNMENT 1 of 5 – LOAN SUBMISSION [20 Marks]…………………………………………………..11
ASSIGNMENT 2 of 5 – LOAN SUBMISSION for EQUIPMENT FINANCE [20 Marks]……………..16
ASSIGNMENT 3 of 5 – THEORY ASSESSMENT – 6 QUESTIONS [30 Marks] ……………………….21
ASSIGNMENT 4 of 5 – SERVICING, RESEARCH and RISK – 11 QUESTIONS [30 Marks] ………25
ASSIGNMENT 5 of 5 – PART A – WORKPLACE SUSTAINABILITY [25 Marks] ………………………35
ASSIGNMENT 5 of 5 – PART B – ETHICS [25 Marks]………………………………………………………38
Mandatory Feedback Questionnaire…………………………………………………………………………..40
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© 2023 The National Finance Institute FNS50322 Assessments – V.030123
PART 3 – ASSESSMENTS
Summary of Contents
This section consists of the following assessment tasks:
A. Part 1 Learning Activity questions (90 marks) – if not already provided to you
please email [email protected] to obtain the link to complete this
task online
B. Part 2 Learning Activity questions (80 marks) – if not already provided to you
please email [email protected] to obtain the link to complete this
task online
C. Assignment 1 – CASE STUDY 1 – You are required to complete 1 submission to a lender
on behalf of these clients (20 marks)
D. Assignment 2 – CASE STUDY 2 – You are required to complete 2 submissions for these
equipment finance clients (20 marks)
E. Assignment 3 – THEORY ASSIGNMENT – This is an open book, multiple-question
assignment on some of the topics studied within this course (30 marks)
F. Assignment 4 – SERVICING, RESEARCH and RISK ASSIGNMENT – You are required to
use what you have learned and your research skills to obtain information necessary
to understand the complex requirements and risks when providing broking services
to clients with complex loan needs (30 marks)
G. Assignment 5 – SUSTAINABILITY and ETHICS – You are required to use the
information provided in Part 1 Learning Guide and research on the internet if
required, to (A) prepare a Sustainability Policy and (B) complete an Ethical Case Study
(50 marks)
| H. | Compulsory Education Department Feedback form |
| All items above are required by NFI |
Total possible marks = 320. To reach a Competent status for this Diploma qualification,
trainees need to achieve 85% for each of the A. and B. Learning Activity online questions
and 85% for each of the 5 assignments.
———————————————-
Questions/Scenario – There may be one or more questions relating to the competencies
you are required to demonstrate.
Cover Sheet – Trainees must ensure that the Cover Sheet provided is included with the full
completed 5 Assignment submission (ie. use the provided cover sheet as the front page to
your 5 assignments and submit together).
Full Assessment – comprised of online questions + 5 assignments that as a whole make up
the complete Assessment. You are required to complete the online questions then submit
the remaining 5 assignments together.
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Answers – Extensive answers are not always required. Brief answers may be appropriate
for some questions as long as you ensure your response adequately addresses the
question.
Presentation – Presenting your assessment submission in a format that is clear and
appropriately structured forms part of your assessment and also demonstrates your ability
to communicate ideas and concepts and use technology.
Marking – After NFI has reviewed your Learning Activity question answers and your 5
Assignments have been marked, your pass or resubmission requirement will be advised via
the online platform and by email if a resubmission is required.
All Assessment tasks should be submitted together ie. at the same time, either by mail or
email or by uploading into the online platform.
Your completed assessments will NOT be returned to you as they are retained for audit
purposes as required.
The assessment tasks will also be used to assess your language and literacy skills. The
assessor will check your assignments to ensure
that they are accurate with suitable grammar and punctuation
that they are appropriate to the target audience
that they show planning and organisational skill
that they demonstrate your ability to search for products and service information and
use problem solving approaches to identify customer needs and expectations.
TIME LIMITS – You have six (6) months in which to complete all of your course assessments.
You may submit your assessments at any time within this six-month period. Extensions are
only available after this time for an additional fee. If your six months expires you will no
longer have online access available.
PASS MARK – The assessments A to G above together form the full assessment content of
this Diploma course, and you are required to achieve 85% on each assessment task in
order to pass the course.
KEEP A COPY – With all assessments submitted you should ensure you retain an electronic
or scanned or photocopied record of your submissions for your own files and in case of
possible loss in transit.
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How to Submit your Assessment Tasks
HOW TO SUBMIT YOUR ASSESSMENTS – There are three options for submitting your
written assessments as below. Please ensure a Cover Sheet is included.
Option 1 – Mail
The National Finance Institute
P.O. Box 1354
Capalaba Business Centre Qld 4157
Option 2 – Email
Email your work to [email protected]
Option 3 – Upload
If you have access to the online portal where you complete your learning activity
questions, then you have the option to upload assignments in this same portal.
————————————————————–
To contact NFI:
Phone: 1300 765 400
Email: [email protected]
Frequently Asked Questions
Q. Can I send my assessments through as I do them?
A. You should complete your online questions through the online platform then submit all
of your other assessments together at the one time.
Q. Is there an attachment file size limit for emailing?
A. Yes, if you are scanning your assessments you need to scan in black & white to keep the
file size small and with a low dpi. All of your assessment tasks should be sent in one email,
not multiple emails. Total maximum attachment file size is 10Mb by email or 8Mb by
upload.
Q. How should I name my assessments?
A. It is important that you name every file name with your own name and what it contains.
An example is below. You must adhere to this process. Example:
Vivien Xiao FNS50322 Diploma course Assignment 1.doc
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Q. What if I can’t get my file sizes small enough?
A. You will need to print and mail your assessments if you cannot reduce the file size to
within the 10Mb size limit.
Q. How long before I receive my results?
A. Please allow up to 3 weeks for marking your assessments.
Q. Can I get faster marking?
A. Marking will be completed as soon as possible and is dependent on the quantity of
marking we have at any one time. In most cases, your assessments will be marked in less
than 3 weeks but please allow up to 3 weeks as a maximum. We also offer an Express
Marking option for a fee which will reduce marking time down to 3 business days. Please
phone 1300 765 400 if Express Marking is required.
Q. What if I don’t pass one of my assessments?
A. You will be allowed an additional 2 attempts to complete each assessment if you do not
pass the first time. We will email to let you know if you do not pass your first attempt and
provide you with detailed feedback to assist with your resubmission. You will then have 21
days to resubmit.
Q. How long do I have to resubmit a failed assessment task?
A. You have 21 days in which to re-submit your assessment
Q. Once I pass, how can I get my certificate?
A. Once your assessments have each reached a minimum of 85% your certificate will go in
line to be produced within 1 to 2 weeks of your pass. Your certificate and transcript will be
sent by regular mail.
Q. My letterbox is small, will my certificate be okay?
A. We stamp our mailing envelopes with “please do not bend”. If you do not receive your
certificate within the above guidelines and have not heard from us, please check your local
post office in case your envelope is being held there. It is Australia Post policy that if the
postman considers your envelope may be damaged from inserting into your letterbox, then
they may hold at the nearest post office for collection by you.
Q. I have changed my address since I first enrolled, what should I do?
A. Please let us know your new mailing address as soon as you are aware of it so that we
can ensure our mail will reach you. If you do not advise us of your change of address, your
certificate will need to be reissued at a fee of $29.95 per page and may take an additional 3
weeks.
Q. My colleague has done these assignments and I have used my colleague’s calculations, is
this okay?
A. To avoid us recording your work as a plagiarised submission, you must ensure that your
assignments are 100% your own work. NFI procedures are in place to determine if copying
has occurred and using another person’s submission as your own is not acceptable.
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© 2023 The National Finance Institute FNS50322 Assessments – V.030123
LEARNING ACTIVITY
QUESTIONS
ASSESSMENT A and B
Part 1 and Part 2
Learning Activity Questions
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Learning Activity Questions
These questions form part of your final marks
Please complete online at
http://financeinstitute.ecampusv2.com.au/
HOW TO ACCESS YOUR QUESTIONS:
Workshop trainees: your trainer will provide you with
instructions and the link
Distance learning trainees: please refer to the email you
received upon enrolment which included your enrolment
key
Online learning trainees: please refer to the email you
received upon enrolment which included your enrolment
key
Please contact NFI if you have any difficulties
Ph 1300 765 400 or [email protected]
Your assignment cover sheet follows overleaf.
This cover sheet is also provided in the online platform as an interactive document if you
prefer to type your cover sheet.
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© 2023 The National Finance Institute FNS50322 Assessments – V.030123
ASSIGNMENT COVER SHEET FNS50322
| I declare that the attached material is all my own work, that it is free of plagiarism and that all sources have been properly acknowledged. Signed ___________________________________________ Date _______________________ My method of enrolment in this course was: PLEASE ENSURE YOU TICK ONE OF THE 3 BOXES BELOW – I attended a face-to-face workshop in …………………………………………………… (city) on ……………………………….. (date). – I enrolled as a distance learning student and received my course material by mail – I enrolled as an online e-learning student and completed my course online |
|
| Trainee NAME: | |
| POSTAL Address: | |
| Postcode | |
| Phone (home) | Phone (work) |
| Fax | Phone (mobile) |
| Email address | |
| Preferred method of contact |
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THIS PAGE FOR NFI OFFICE USE ONLY
| This page for NFI OFFICE USE ONLY Trainee name: ___________________________ |
| Name of Assessor: _____________________________________ Date Assessment received: _____________________________________ |
| ASSIGNMENT 1 Mark__________ / 20 Assessor’s Comments: ……………………………………………………………………………………………………………….. ………………………………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………………………………… ASSIGNMENT 2 Mark__________ / 20 Assessor’s Comments: ……………………………………………………………………………………………………………….. ………………………………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………………………………… ASSIGNMENT 3 Mark__________ / 30 Assessor’s Comments: ……………………………………………………………………………………………………………….. ………………………………………………………………………………………………………………………………………………… ASSIGNMENT 4 Mark__________ / 30 Assessor’s Comments: ……………………………………………………………………………………………………………….. ………………………………………………………………………………………………………………………………………………… ASSIGNMENT 5 Mark__________ / 50 Assessor’s Comments: ……………………………………………………………………………………………………………….. ………………………………………………………………………………………………………………………………………………… |
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© 2023 The National Finance Institute FNS50322 Assessments – V.030123
ASSIGNMENT 1
ASSIGNMENT 1 of 5
– LOAN SUBMISSION [20 Marks]
Overview The purpose of this task is to allow you to demonstrate that you can complete the major
steps required in broking or writing a moderately complex loan for a customer – through
identification, development and implementation of loan options while assessing and
managing risks. The samples provided online in Appendix a) and b) will prove helpful.
Remember that what you prepare would, in the real world, need to be presented to the client
orally and thus must be understood by them.
| INSTRUCTIONS | Read the scenario provided and using the information and data supplied, prepare a formal loan submission for a lender using the following headings. Use subheadings where appropriate to ensure your submission will be easily read and understood by the lender. The client file should contain the standard client information and data that would be included in a typical submission for a loan of this complexity. Created as a Word document, your lender submission should include as a minimum the following headings: 1. Borrower’s Details 2. Background 3. Loan Purpose 4. Facility Details (research a Bank website for commercial loan terms) 5. Funds Position 6. Servicing Capacity (use manual calculations and show all workings) 7. Security 8. Risk Assessment and Management (according to lender policy, guidelines and relevant legislation). Consideration must be given to any environmental, heritage or native title implications 9. Recommendations 10. List of Attachments* * Attachments which would normally be included in a submission to a lender all need to be listed for the purpose of this assignment. You will not need to create “dummy” supporting documents. Please Note – you should ensure you refer to “Tips” following each assignment. |
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| SCENARIO Applicant’s Information Work History |
Angus Bollard has been a real estate agent for over 20 years and jointly with his wife Janice own 6 shops at 55 Park Road, Belmont. Mr and Mrs Bollard own the shopping centre under the Bollard Family Trust. The property was recently valued at $1,450,000 and has a current ZZZ Bank mortgage of $575,000. Five of the shops are rented out for $96,000. The sixth shop is occupied by Mr Bollard’s real estate business, Bollards Real Estate Pty Ltd, which pays annual rental of $42,000 to the Family Trust. Bollards Real Estate Pty Ltd was formed at the beginning of the last financial year to take over the real estate agency business, which was previously conducted by a partnership between Mr Bollard and James Hopper. Bollards Real Estate Pty Ltd took over the business when Mr Hopper retired; Angus Bollard is the sole director of Bollards Real Estate Pty Ltd. Mr and Mrs Bollard now wish to acquire 3,000m2 of land near their existing shopping centre and hold it for 1 – 2 years pending rezoning. The purchase price is $550,000. The land was previously used as a State Government Health and Dental Centre, but the building was demolished when it became obsolete. The land is currently zoned ‘Special Purpose’, but the local council earmarked the land for future ‘Commercial’ use in its recently released Town Planning Scheme. The land is located at 423 Belmont Road, Belmont and has a two-street frontage with considerable passing traffic. The Bollards have contracted to purchase the property in their capacity as trustees of their Family Trust and settlement is due with 60 days. They wish to raise 100% of the purchase price plus $25,000 for stamp duty, financing and conveyancing costs. They are willing to offer both the land and their existing shopping centre as security for the proposed loan. They will contribute a further $20,000 over the next 1-2 years to cover the costs associated with re zoning of the property and obtaining approval to develop another shopping centre. ZZZ Bank policy does not allow lending against land zoned ‘Special Purpose’ and cannot assist with the purchase. The Bollards have appointed you to approach an alternative lender to refinance their ZZZ Bank loan and obtain the additional funds required. Assume an interest rate of 6.5% for a commercial loan, 7% for an overdraft. Angus Mark Bollard – DOB 29/07 1975 DL # 2945758 Janice Elizabeth Bollard – DOB 15/06 1977 DL # 2786454 Married with three adult children (one working in the real estate business) Address: 12 Currumbin Close, Carindale QLD 4152 Accountant – Ainslie and Partners Telephone – 07 3349 9999 Angus has been a real estate agent for 22 years in the Brisbane south-east area, he specialises in commercial and industrial property (rent roll comprises 75% commercial and industrial properties). His gross salary last financial year was $78,000. In the previous financial year, he drew $55,000 from the partnership with James Hopper. Janice has been employed as the property manager since Bollards Real Estate Pty Ltd took over the agency after the partnership. Her gross wage last financial year was $43,000. She did not work in the previous financial year. |
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| Financial Information |
Last financial year Bollards Real Estate Pty Ltd recorded the following financial results: Personal Financial Position – Angus and Janice Bollard ASSETS *Existing home loan is currently at 3.5%, P&I with remaining loan term 25 years. |
Gross Revenue $346,000
Net Profit $ 72,000
Depreciation $ 14,000
Director Superannuation $ 11,000
In the previous financial year, the partnership of Angus Bollard and James Hopper trading
as Bollards Real Estate recorded the following financial results:
Gross Revenue $422,000
Net Profit $ 84,000
Depreciation $ 16,000
Director Superannuation $ 11,000
The Bollard Family Trust purchased the shopping centre at Park Road Belmont 18 months
ago and its financial statements for the past financial year are as follows:
Gross Rental Income $138,000
Loan Interest $ 52,000
Management Fees $ 11,000 (paid to Bollards RE Pty Ltd)
Net Profit $ 50,000
Depreciation $ 25,000
House at 12 Currumbin Close Carindale QLD $560,000
Share Portfolio (Blues Chip Listed Shares) $345,000
Motor Vehicles $ 60,000
Furniture $ 85,000
Cash at Bank $ 45,000
LIABILITIES
Home Loan with ZZZ Bank $190,000 *
ZZZ Bank Credit Card (Limit $20,000) $ 10,000
TIP
The servicing calculations need to be prepared manually showing all workings. Net profit minus tax.
Show addbacks. Then calculate outgoings including the new facilities, and lastly using the correct
formula provided in the course material calculate the DSCR. Present within your Word document.
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| Financial Information Continued … |
Financial Position of Bollards Real Estate Pty Ltd ASSETS (Keep in mind that, in the absence of actual tax returns which would confirm the income distribution of the trust, any profit would be distributed and taxed in the hands of the beneficiaries. For the purpose of this assignment, assume company tax rate of 25% and superannuation rate of 10.5%, even though in “real life” of course you cannot assume, and the distributions would be clear in “real life” financials.) Property being purchased Vacant Land 423 Belmont Road, Belmont QLD 4171 Lot 84 on RP 9564 Zoning “Special Purpose” Area 3000m2 Existing Property Shopping Centre 55 Park Road, Belmont QLD 4171 Lot 43 on RP 9542 Zoning “Commercial” Area 1850m2 Tenancies |
||
| Tenant | Rent | Term | Rent Review |
| J & R Blend T/A Blend News |
$22,000 pa net | 3 + 3 years | Annually by CPI |
| Copelin Accounting Pty Ltd |
$18,000 pa net | 1 + 1 + 1 years | Annually by CPI |
| R Spragos T/A Roger’s Deli |
$28,000 pa net | 5 + 5 years | Annually by CPI |
| Vu Nguyen T/A Care Pharmacy |
$20,000 pa net | 3 + 3 years | Annually by CPI |
| M Goodson T/A Good Alterations |
$8,000 pa net | 3 + 3 years | Annually by CPI |
| Bollards Real Estate Pty Ltd |
$42,000 pa net | 3 + 3 years | Annually by CPI |
Business Goodwill $250,000
Plant & Equipment $ 35,000
Debtors $ 30,000
LIABILITIES
ZZZ Bank Overdraft (limit $40,000 secured by residence) $25,000
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TIPS for Assignment 1
| 1. Submission – In this Assignment 1, your submission will consist of both: a) Income and debt for the borrowing entities both company and Trust for servicing purposes. b) Separate personal income and debt for directors, to strengthen the submission. |
| 2. Presentation – Although in real life you may well present the client part of this assignment in person to the client ie. verbally, for the purpose of this assignment please present your submission in a Word document format. In order to gain a good understanding of how to present this assignment, please refer to Appendix B. |
| 3. Facility Details – This section requires loan terms (commercial loan terms). Hint: research commercial loan terms online, as these are different to standard home lending terms. This section also requires your decision on whether it should be P&I or I/O for both splits, and you should also take into consideration the special zoning for the vacant land for the loan term. |
| 4. Servicing Capacity – You can assume that the lender will allow you to use two addbacks Depreciation and Interest along with Director superannuation that is above the standard superannuation percentage, currently 10.5%. Using the company tax rate of 25% when working out the taxation on income, you need to conduct manual calculations showing all workings. Refer to the formatted example in Appendix B. |
| 5. Security – Security in the way of a mortgage over the homes of the Directors could be taken, but is probably unnecessary in this scenario. The more likely security would comprise of the commercial property and the new land, along with Director guarantees and GSA. |
| 6. Superannuation – As Superannuation Guarantee rates vary from year to year, you can use actual or 10.5% in your calculations, for consistency over the years. |
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ASSIGNMENT 2
ASSIGNMENT 2 of 5
– LOAN SUBMISSION for EQUIPMENT FINANCE [20 Marks]
| INSTRUCTIONS | The assessment for this module is to prepare TWO submissions (see A and B below): Task A: The first submission is for the client so that they have the facts on all their obligations and fees and the structure of the loan. Remember that what you prepare would, in the real world, need to be presented to the client orally and thus must be understood by them. Task B: The second submission is for the lender – a detailed outline of the loan application for the lender, in order to gain pre-approval. PART A – THE CLIENT 1. Created as a Word document, prepare a comprehensive list of open and closed questions that you would need to ask your clients about the proposed transaction, that is, prepare your needs analysis (ie. Fact Find). 2. In a suitable format, prepare a submission for the clients ie. a Proposal document. What your client submission should include: 1. The parties to the loan 2. The security 3. The facility details 4. Lender details (options, recommendations) that are able to lend 5. Confirmation of the client’s complex requirements 6. The personnel that may be involved: eg. the client’s solicitor, accountant, financial advisor 7. The client’s responsibilities, so the client fully understands the loan 8. An outline as to the process timing and what the client needs to arrange 9. The documentation needed to commence the borrowing 10. The name in which the client will sign the contract to purchase 11. A summary of all fees and charges 12. Your notes detailing how you have provided appropriate contact with the client throughout the complex broking process The samples in Appendix a) and b) will assist. |
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| PART B – THE LENDER Prepare a loan submission to the lender for pre-approval. Your submission should include as a minimum the following headings: 1. Borrower’s Details 2. Background 3. Loan Purpose 4. Facility Details (refer to scenario) 5. Funds Position 6. Servicing Capacity (use manual calculations and show all workings) 7. Security 8. Risk Assessment and Management (according to lender policy, guidelines and relevant legislation). Consideration must be given to any environmental, heritage or native title implications 9. Recommendations 10. List of Attachments* * Attachments which would normally be included in a submission to a lender need to be listed for the purpose of this assignment. You will not need to create “dummy” supporting documents. |
|
| EVIDENCE REQUIREMENTS |
In order to be deemed competent, you will need to evidence the ability to: Identify client goals, objectives, requirements and assess special financial needs of the client situation Identify risk issues and risk tolerance and discuss risk management strategies Model, analyse and prioritise suitable options for client, and reject inappropriate options Develop explanatory material for client Interpret and comply with industry legislation, regulations and codes of practice affecting the broking industry Identify and address issues that require further consideration or consultation with other financial services professionals Confirm client understands credit options and identify and respond to client concerns Obtain agreement to proceed from clients Review impacts of asset, income or expenditure requirements, taxation, complex nature of and forms of securities, and other legal or complex requirements Establish and prioritise implementation actions, timing and activities according to client needs and situation and explain implementation actions required by the client Issue instructions to required personnel as per loan structure |
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| SCENARIO | Commercial Equipment Finance for Ron Hammond and Sean Mandeep The clients you met with this morning have been referred to you by another commercial client. They are joint company owners Ron Hammond and Sean Mandeep and they run a successful and growing transport company. They have a diverse client base spread over many industry sectors which is a conscious management strategy to ensure that they do not have significant business risk to a specific market segment or client. All contracts are written with 30-day payment terms. Background industry checks as well as credit history checks are completed on all new business prospects to ensure that there are no adverse issues that may impact on future trading arrangements. Whilst they have only been trading for 34 months they have a solid business plan with actual results to date exceeding projected sales and profit estimates included in their plan. The business was established with unsecured (apart from Personal Guarantees) Seed Capital of $500k from a private investor based on a guaranteed return of $45k pa, and an overall term of 5 years which also requires a principal reduction of $100k pa. The loan can be repaid at any time without penalty. Ron and Sean’s Requirements To accommodate new contracts in hand and planned future expansion, the applicants require establishment of an Equipment Finance Limit of $470k to purchase Trucks and Dog Trailers in the next 12 months. On the advice of their accountant, a new entity, Hamdeep Holdings Pty Ltd ATF The Hamdeep Discretionary Trust, has been established to purchase equipment which will be internally hired to Hamdeep Transport Pty Ltd (the trading entity). Hire charges will equate to finance payments. Ron and Sean are directors of both companies. The longer-term intention is for the Trust to acquire premises to be occupied by Hamdeep Transport Pty Ltd. As part of this expansion the company has leased a second depot at a cost of $6,000pm and will also retain the existing depot. They currently have 5 employees and where needed are using sub-contract operators to fill shortfall in their delivery capacity. Purchase of new additional trucks and trailers will provide additional capacity and flexibility and reduce reliance on sub-contractors who can be unreliable. Whilst a limit is being sought, purchases will only proceed where additional work has been contracted or older equipment is being replaced. Applicants are happy to provide half yearly management accounts as an approval covenant to give a lender comfort that projected sales and profits are in line with budgets. Applicants are keen to reduce debt as quickly as possible and have therefore decided to finance all new equipment over a 48-month term, without a balloon/residual and will commit a refund of GST Input Credits as additional repayments built into the contracted loan structure. |
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| Initial Fact Find | Ron and Sean have both been in the transport industry for many years each being Financial Controllers for major transport companies. Ron has an MBA and Sean a marketing degree. These combined skills complement each other and assist in the effective management of the business. Ron is married and has no dependants. His wife is a school teacher and she will be retiring at the end of the year. Sean is single and is presently completing a HR degree as they feel that as the business grows these skills will be required. Ron and Sean have provided the last two year’s financial accounts for the trading business, as well as interim accounts for the current financial year. (Note: You need to calculate the required servicing for the new debt and surplus required for lender comfort. Assume an interest rate of 8% for the proposed debt.) Financial accounts Year 1- Sales $700k Net Profit $240,000 Year 2- Sales $812k Net Profit $358,000 Current year interim financials (10 months) – Sales $1.125m, Net Profit $506,000 (10 months); Operating Costs include – Depreciation $76,000, Interest $42,000, Sub-contractors $71,000, Directors’ Superannuation $50,000 Wages to partner one $100,000 Wages to partner two $100,000 Payment to private investor (flat fee) $45,000- Expensed in P&L as Finance Cost Existing Equipment Finance (Chattel Mortgages) repayments of $5,000pm |
||
| Applicant Information Key Balance Sheet Items |
|
Ron Hammond annual income $100,000 (paid as wages), owner occupi property $850,000 with debt of $250,000 (assume 5.2% P&I), credit car $25,000 (with debt of $15,000, assume at 3.8%pm), contents $100,000 superannuation $550,000, motor vehicle $40,000 with nil debt. Sean Mandeep – annual income $100,000 (paid as wages), owner occu property $500,000 with debt of $350,000 (assume 5.2% P&I), credit car $10,000 (with debt of $3,000, assume at 3.8%pm), contents $85,000, superannuation $150,000, motor vehicle $25,000 with debt of $15,000 five-year debt at 7%). Cash in business account $25,000. |
ed d limit , pied d limit (assume |
| Cash | $25,000 | ||
| Debtors | $220,000 | ||
| Creditors | $100,000 | ||
| Notes: They currently meet all creditor payments at 30-day terms. Debtor collection has been solid with active management of debtors and pre-contract investigation of new clients. They have just signed a delivery contract with Organic Flower Growers who supply to Woolworths Supermarkets state-wide. To accommodate this work, their initial purchase will be a refrigerated Pantec truck at a cost of $145,000. Projected net profit from this contract is $60k pa. |
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TIPS for Assignment 2
The servicing calculations need to be prepared manually showing all workings. Net profit minus tax.
Show addbacks, then calculate outgoings including the new facilities, and lastly using the correct
formula provided in the course material calculate the DSCR. Prepare as a Word document.
| 1. Submission – In this Assignment 2, your submission can be either: a) Consolidation of all income and debt in assessing servicing capacity OR b) Separate residential and commercial calculations. |
| 2. Presentation – Although in real life you may well present the client part of this assignment in person to the client/verbally, for the purposes of this assignment please present your submission in a written report format. Remember to include Part A, the list of questions that you would need to ask your clients about the proposed transaction, that is, prepare your needs analysis/Fact Find. Then make use of Appendix a) and b) for guidance on layout. Note that Appendix b) has key content points on page 3. |
| 3. Risk Management is the forecasting and evaluation of financial risks together with the identification of procedures to avoid or minimize their impact. If you take a look at Ron and Sean’s requirements and the “fact find” area in the scenario, this will assist you in providing possible risks and the relevant information to mitigate these risks, for example strong servicing, short loan term with no balloon, etc. |
| 4. Funds Position – As explained in Appendix b), the Funds Position should include a calculation of required funds including purchase price and costs to ensure that borrowings and equity are sufficient to complete the transaction. The clients are potentially buying equipment costing $470,000 and it would be reasonable to say 100% borrowing requested. Brokerage is payable by the lender and included in the loan repayments to them so there is no additional cost in relation to brokerage. |
| 5. Loan Repayments – If the loan is $470,000 and you calculate the P&I repayment amount of $21.25 (showing under the 5 Years column in the Monthly Repayment Calculator table in Appendix m), you would get a monthly repayment figure of $9,987.50 per month. However, the scenario in this Assignment 2 is based around a 4 year term not a 5 year term so your calculation of the repayment amount would be a higher figure per month. If preferred, you may also, or instead, source and utilise an online Chattel Mortgage repayment calculator. |
| 6. Servicing Capacity – You can assume that the lender will allow you to use two addbacks: Depreciation and Interest. [NOTE: Interest expense applies to the existing Chattel Mortgage and repaid facility]. Use the company tax rate of 25% when you work out the taxation on income and superannuation rate of 10.5%. Simplistically you will outline income, less tax, then add back the addbacks, take away their commitments and you’ll be left with the servicing surplus and the DSCR. |
| 7. Security – Security in the way of a mortgage over the homes of the Directors could be taken but it is probably unnecessary in this case. The more likely security would comprise of the Goods (trucks and trailer), the Directors’ Guarantees and the GSA from Hamdeep Transport Pty Ltd. |
| 8. Superannuation – As Superannuation Guarantee rates vary from year to year, you can use actual or 10.5% in your calculations, for consistency over the years. |
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ASSIGNMENT 3
ASSIGNMENT 3 of 5
– THEORY ASSESSMENT – 6 QUESTIONS [30 Marks]
When responding to the following questions you are to describe the processes and
resources used as it may apply to a specific situation. Please provide evidence of any
templates, organisational material or technology used and/or provided to the client in
each situation, if applicable. All references to written material or websites used must be provided
(simple format).
IMPORTANT: Please answer all questions comprehensively, to show evidence of a good
understanding of each question topic.
| Question # | Question Detail |
| 1. | Describe how you gather the information required to establish a client’s special financial circumstances? In answering this question, you should refer to: Explanation of the services provided to the client Listening and questioning techniques you employ Your use of language appropriate to any cultural differences Your interpersonal skills and how you would deal with any emotive issues sensitively Your ability to build/establish rapport Your professionalism Your communication skills Your provision of appropriate contact with client throughout the complex broking process |
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| 2. | Describe how you record and document your interaction with clients? In answering this question, you must refer to: Templates used to gather information in initial interview Diarising or recording telephone conversations Procedures that are established for critical implementation, timing and priorities The documentation gathered Any technology used to record or gather information. How you access and use appropriate specialist software, organisational templates, spreadsheets and databases How your recommendations and loan structures, as presented to clients, are documented according to organisation guidelines and procedures |
| 3. | Describe how you research and identify complex credit options based on the clients’ special financial circumstances? In answering this question, you must refer to: How special or complex features of a client’s situation and objectives are discussed, reviewed and clarified The analysis of the client situation to determine opportunities and constraints Research into loan structures or options including those which are new or non-standard Consideration of financial issues in terms of economic, legislation, taxation, legal, insurance In what conditions would the broker need to refer clients to a specialist advisor (eg. financial advisor or accountant) How possible loan structure or options are analysed, modelled, prioritised and measured The process used to reject inappropriate options including checks to ensure compliance with relevant Acts Assessment of options to successfully achieve the client’s objectives How you liaise with others, share information, listen and understand. |
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| 4. | Describe and/or provide evidence of how you identify, assess and manage risk when dealing with clients with complex loan requirements? In answering this question, you must consider: Risk evaluation criteria eg. undertaking risk categorisation and determining the level of risk Risk assessment tools (eg. valuation practices) Communication of the aspects of the valuation result/s to clients Discussion on the issues around an adverse valuation Establishment of the probability of risk including the severity and/or impact Identification of stakeholders and how throughout the loan process o you seek their views o provide pertinent risk information – clearly describe risks o recommend amendments to existing controls and report any need for new controls How would you as a professional in the industry ensure that you comply with industry and government requirements and professional codes of practice? How would you read and interpret organisational and industry information? |
| 5. | A) Prior to presenting the loan option to the client, did you identify any concerns that the client may raise? B) What preparation was completed to respond to these concerns? Consider: Research/documentation materials Alternative recommendations Regulatory limits and financier guidelines In your answer to both A) and B) questions, you should also refer to your ability to: Identify and respond appropriately to client concerns Exercise restraint when dealing with clients in conflict situations The process used to gain agreement to proceed from the client. |
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| 6. | Describe how you would present lender options to a client, including why you chose that option or options and why you chose a particular lender. TIP – to answer this question, you may search online and choose a lender and loan product and answer this as a (written) role play. In answering this question, you must consider how you guide the client through options including: Discussion of impact – advantages, disadvantages, risks and financial implications Fees charges and commissions inclusive of any fees paid by the lender directly to the broker How would you explain to the client the lender conditions as they comply with relevant legislation, regulatory guidelines, industry sector compliance requirements and the lender’s policy? Research and documentation provided to the client Consultation required with other financial services professionals (eg. accountants, lawyers, financial planners, valuers, etc.) Confirmation that the client understands the options presented and any concerns are addressed Providing information on complaints resolution procedures (internal and external) as included in the information provided to the client. |
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ASSIGNMENT 4
ASSIGNMENT 4 of 5
– SERVICING, RESEARCH and RISK – 11 QUESTIONS [30 Marks]
Question 1
In this exercise we are analysing some financial statements in preparation for completing a
submission to a financier. The scenario is provided below and an income statement and
balance sheet are then provided for Wholesale Butchers Pty Ltd.
You will then have 3 tasks to complete – A, B and C below. TIP: You may wish to revisit the
INT Services Practice Activity/Answers which you studied in Part 2 of the course learning guide:
A. Using the 2 financial statements provided, complete the manual Serviceability
Analysis for Wholesale Butchers by inserting the figures into the table provided.#
B. Using the 2 financial statements provided, calculate and insert the ratios in the
table provided and comment as to the risk using Low/Medium/High rating.#
C. List your comments on the outcome of your calculations and ratios as you
would if presenting this in a submission to a lender.#1
Scenario:
Mr Brett Olsen has owned his wholesale butcher company “Wholesale Butchers” for
the past four years. He is the sole director and shareholder of the company. The past
six months has seen an influx in orders and, to keep up with demand, he requires
another refrigerated van in order to maintain delivery standards and turnaround times
to his respective buyers.
Mr Olsen wants to purchase a second-hand van, 1 year old, from RV Dealers for
$55,000 and is considering a 5-year Chattel Mortgage (CM), with an interest rate of 6%
and monthly repayments of $1,073. He has opted not to provide a deposit and is not
seeking any balloon at the end of the loan term. As no deposit is to be applied,
repayments will be monthly in advance.
Mr Olsen’s only business debts are an overdraft with CBA with a limit of $25,000 and
current balance of $2,800 at 6% and his CM with 6% loan with Esanda for his existing
refrigerated van, with monthly repayments of $1,058 pm and 2 years remaining.
His financials for the financial years ending 2021 and 2022 are provided here for your
perusal and assessment (only $ are shown in financials, not cents, so there is some rounding in totals).
1 # Interactive tables have been provided for you as a separate pdf file if required for use with this Assignment 4, Question 1.
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Wholesale Butchers Pty Ltd
Income Statement
For the financial year ending 30 June 2022
| 2021 $ 485,000 |
2022 $ 509,250 |
Sales |
| Cost of Goods Sold | 291,000 | 305,550 |
| Gross Profit | 194,000 | 203,700 |
| Operating Expenses | Advertising | 1,250 | 908 |
| Amortisation | 500 | 500 | |
| Depreciation | 9,000 | 7,650 | |
| Interest | 4,372 | 3,735 | |
| Office Equipment | 1,000 | 1,100 | |
| Rent | 29,100 | 30,555 | |
| Salaries (Directors) | 29,224 | 31,963 | |
| Stationery | 800 | 925 | |
| Utilities | 25,000 | 26,000 | |
| Vehicle Expenses | 9,700 | 10,185 | |
| Wages/Staff | 44,292 | 46,507 | |
| Superannuation/Staff & Directors | 6,984 | 7,847 | |
| Total Operating Expenses | 161,222 | 167,875 |
NOI / Net Profit 32,778 35,825
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Wholesale Butchers Pty Ltd
Balance Sheet
For the financial year ending 30 June 2022
2021 2022
$ $
ASSETS
Current Assets Cash 22,945 25,078
Receivables 4,042 4,244
Stock on Hand (inventory) 5,596 5,876
Total Current Assets 32,582 35,197
Non-Current Assets Plant and equipment 24,000 21,600
Vehicles 35,000 29,750
Other Non-Current Assets 2,348 2,574
Intangibles (Formation Costs) 6,250 5,750
Total Non-Current Assets 67,598 59,674
Total Assets 100,180 94,871
LIABILITIES
| Current Liabilities | Creditors Overdraft CBA (Limit $25,000) CM Esanda Current Portion ($1058×12) Employees |
| Provisions |
11,192 11,752
3,600 2,800
12,696 12,696
4,042 4,244
Other 598 637
Total Current Liabilities 32,128 32,129
Non-Current Liabilities CM Esanda Long Term Portion 22,256 11,295
Total Non-Current Liabilities 22,256 11,295
Total Liabilities
and Provisions 54,384 43,424
NET ASSETS (Owners’ Equity or Shareholders’ funds) 45,796 51,448
NB. Notes to the balance sheet and income statement have been omitted for this exercise however must be provided
with every loan submission.
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Q1.Task A – Serviceability Analysis
Using the financial statements provided – Wholesale Butchers Pty Ltd – manually complete
the Serviceability Analysis below.
| 30 June 20__ | 30 June 20__ |
| Net Profit Before Tax (Note 1) | |
| Plus Potential Add Backs: | |
| Interest | |
| Depreciation + Amortisation (Note 2) | |
| Additional Superannuation (Note 3) | |
| Extraordinary or non-recurring expenses (may be Plus or Minus) (Note 4) |
|
| Earnings Before Interest, Taxation, Depreciation, and Amortisation (EBITDA) |
|
| Less Taxation* calculated on Net Profit Before Tax figure above (Note 5) |
|
| Available for Debt Service (ie. EBITDA less tax above) | |
| Interest Cover Ratio: Proposed Deductible Interest Costs: |
|
| Existing Overdraft (Base on $25k limit) | |
| Existing CM Interest (Current + Long Term) [Hint: $34,952 @ 6% for 2021] |
|
| Plus Proposed facility ($55k @ 6%) | |
| Total Proposed Interest Costs | |
| Proposed Interest Coverage Ratio (Note 6) (EBITDA divided by Total Proposed Interest Cost) |
|
| Debt Service Cover Ratio: | |
| Existing Overdraft from above, interest only | |
| Existing Loan Repayments ($1,058pm) | |
| Proposed Loan Repayments ($1,073pm) | |
| Total Commitment Proposed | |
| DSCR (Note 7) (Amount available for Debt Service divided by Total Commitment Proposed) |
* Corporate tax rate used is 25%
| Notes | |
| 1 | Generally, only operational income is included unless non-operational revenue is regular and reliable in which case comments should support inclusion |
| 2 | Amortisation refers to the write-down of intangible assets such as patents, licenses or copyright |
| 3 | Only include if there is above superannuation guarantee levy and is thus discretionary. Salaries generally infers payment to owners whereas Wages infers employees’ remuneration – Superannuation is paid on directors and staff salaries. As Superannuation Guarantee rates vary from year to year, you can use actual or 10.5% in your calculations, for consistency over the years. |
| 4 | Relates to one off items such as a gain or loss on sale of assets which reflect in the net profit but will not recur |
| 5 | Principal Repayments come from after-tax earnings so allowance needs to be made |
| 6 | Interest is a tax deductible expense and therefore the ratio does not require any allowance for taxation |
| 7 | New purchase will attract taxation deductions for depreciation and interest with a consequent reduction in the Net profit and the taxation liability and therefore enhance the repayment ability somewhat. Usually comment if DSCR is below 1.2 |
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Q1.Task B – Ratios
Using the financial statements provided – Wholesale Butchers Pty Ltd – you should
fill in the table below by calculating the 9 different ratios for each of the 2021 and
2022 years. Then in the Risk Rating column please state whether the risk rating
would be LOW, MODERATE or HIGH, for each of the ratios.
| RATIO | 2021 | 2022 | Risk Rating |
| 1. Current Ratio | |||
| 2. Quick Ratio (Acid Test) | |||
| 3. Return on Equity (ROE) | |||
| 4. Return on Assets (ROA)~ | |||
| 5. Debt to Equity Ratio | |||
| 6. Debt to Assets Ratio | |||
| 7. Leverage Ratio | |||
| 8. Interest Coverage Ratio (ICR) – Total Proposed1 |
|||
| 9. Debt Servicing Coverage Ratio (DSCR) – Total Proposed1 |
1 The results of these two ratios will also be in the Part A Serviceability Analysis
TIPS
Task B – In order to calculate these ratios, please refer to the Part 2 course learning guide
section on Financial Ratios. The section on ratios contains all the ratio formulas you will need
to complete this task. Read each one carefully, including understanding the risk levels to
establish the Risk Rating. If further information is needed, then conduct some external
research if required.
~ For example, calculations for ROA for 2022 would be ($35,825 + $3,735) / $94,871 = 0.42 = Low
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Q1.Task C – Comments
Complete some comments on the outcome from your completed Serviceability
Analysis for Wholesale Butchers Pty Ltd, as you would if presenting this in a
submission to the financier. Also include comments on your ratio outcomes. A tip is
below.
Comments may include but are not limited to:
TIP
Task C – When making commentary for the servicing analysis, it is important to mention any
trends surrounding expenses and or profit, whether increasing or decreasing over the two
years eg. profit has increased in the most recent year due to the organisation gaining a new
contract. The commentary on ratios is equally important eg. make mention of any trends ie.
Debt to Equity: 2021 1.10%, 2022 0.86%, this shows a high risk in 2021, however the
organisation has reduced its debt in 2022 decreasing the risk level to low.
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Question 2.
Please research the Internet (eg. Google) on the subjects below and review the course
material, then provide comprehensive answers to the following:
A TRUSTS
a) What is a Unit Trust?
b) What is a Discretionary Trust?
c) What is a Hybrid Trust?
d) What is a Discretionary Family Trust?
e) What is a Trustee?
f) Define the differences of each type of Trust, including the obligation/s of the
Trustee
g) Provide an example of when each type of Trust would be used.
B COMPANY
a) What are the legal requirements of a company?
b) What are the personal obligations of directors by law (please summarise)?
c) Can anyone be a director of a company?
d) What is the minimum number of directors required?
Question 3:
From your research in the course and the Internet please provide answers to the following
(from a Financial Accounting perspective):
a) What is a Balance sheet?
b) What is a Profit and Loss statement?
c) What is Depreciation?
d) What is Liquidity Ratio?
e) What is Current Ratio?
f) What is Debt to Equity Ratio?
g) What is a Cashflow Statement?
h) What is an Asset?
i) What is Liability?
j) How is a Net Profit determined?
k) How would you define Equity?
l) Under Australian taxation conditions, what are allowable expenses (provide
3 acceptable examples)?
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Question 4:
From your research in the course and the Internet please provide a definition of the
following 4 products and give examples:
a) Commercial Bank Bill
b) Invoice or Factoring Finance
c) Chattel Mortgage
d) Asset Finance product or Equipment Finance
Question 5:
In the Australian Standard ISO 31000:2018 there are 8 Principles of Risk Management.
A) Please list six (6) of them and B) briefly state what each one is about.
| Principle | Outline of Principle |
| A | B |
Question 6:
There are many ways that an Industry Analysis can be completed. We have provided a
sample below of a simple process to categorise the overall risk of any business/industry that
you may choose to analyse. Please review the entries below. To simplify the process some
factors have been grouped together to alleviate any overlap of impact.
Task: In approximately 200 words, explain why you believe it is necessary to
categorise risks
| Industry Risk Factor |
Low Risk | Moderate Risk | High Risk |
| Life Cycle | Mature Industry | Mature or Saturated | Decline or Introductory |
| Social/ Demographic |
Stable trends | Unstable trends | Very unstable – strong trend impact |
| Cost Structure | Lower Fixed costs – Higher Variable Costs |
Fixed Costs Higher than Variable |
Very High Fixed Costs, Very Low Variable Costs |
| Economic Environment |
Not impacted by Business Cycle |
Some impact by Business Cycle |
Heavily impacted by Business Cycle |
| Political Environment |
None to little influence, some regulation |
Some to heavy, Influenced by regulation |
Strong Influence – heavily regulated |
| Buyer Impact | Many Buyers | Fewer Buyers | Few buyers, large search effort, high budget required |
| Supplier Impact | Many Suppliers | Limited or Few Suppliers | Dependent on one or few, large input value |
| Threat of New Entrant |
High barriers to entrant. | Lower start up costs, access to market | No new entrant barriers- very low costs |
| Threat of Substitute Product/Service |
No Substitution | Some substitutes – low cost to switch |
High level of substitutes no switching costs |
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Question 7:
Referring to information in the Course Learning Guide Part 1 and using either your own, or a
fictional finance broking company:
a) Identify and describe 2 specific risks that the broking company could face.
For example, Fluctuating Income leading to inability to pay bills or a
Compliance Breach.
b) Identify and describe what risk controls and risk mitigation strategies could
be implemented to managing these 2 risks.
Your answer should cover the following points:
1. How would you categorise the risk (eg. Strategic / Financial / Other)?
2. Which stakeholders would potentially be involved or impacted?
3. What are the types and key principles of risk controls?
4. Which controls could be put in place to avoid or mitigate these specific
risks?
Question 8:
Risk appetites should be aimed at improving business performance. If your broking firm had
a strategic imperative of customer satisfaction and the risk appetite statement outlines a low
tolerance for customer dissatisfaction, what risk management controls could be put in place?
Question 9:
You are a self-employed Credit Representative in your second year of operation working,
under a Credit Licensee. Your PI insurance premium is due to be paid and it has been
increased by over $500. Due to minimal income for the past few months, you decide to let
it lapse as you are just coping thanks to trail commissions and you will aim to renew it again
in six months’ time. After 3 months has passed your Licensee requests a copy of your
renewal notice and you cannot supply it.
a) Would the Licensee be obliged to report you to ASIC?
b) If not, what would be the appropriate steps to take?
c) If so, what would be the reporting process?
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Question 10:
A lender becomes aware of an individual mortgage broker falsifying information in their
loan application documents after seeking to verify income statements used to support a
client’s loan application. The broker’s client provides the lender with a copy of the income
statement that they had provided to the mortgage broker and it contains a lower income
figure than that provided by the mortgage broker to the lender.
a) Would this conduct be misleading and deceptive or possible fraud or both?
b) What action would the lender likely take in the first instance?
c) Would this be a reportable situation to ASIC and why?
d) Is the lender required to report within 7 days, 30 days, 60 days?
Question 11:
When identifying risks in a residential mortgage portfolio, name 5 areas that a bank may
consider. For example, geographic concentrations (Refer to Part 1 Learning Guide on Risk).
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ASSIGNMENT 5
ASSIGNMENT 5 of 5
PART A – WORKPLACE SUSTAINABILITY – 5 Questions + 1 Case Study [25 Marks]
PART B – ETHICAL FRAMEWORKS – 5 Questions + 1 Case Study [25 Marks]
Please complete the following 12 questions by creating your answers in a Word document.
Please ensure that each of your answers contains the question number to which it refers.
______________________________
ASSIGNMENT 5 of 5
– PART A – WORKPLACE SUSTAINABILITY [25 Marks]
Question A1
Business organisations are expected to develop and implement sustainability policies. Policy
scope refers to the people or actions to which a policy applies. List 5 items that might be
covered in the scope of a sustainability policy.
Question A2
List at least 6 key elements that should be included in an organisation’s sustainability policy
(eg. timeframes).
Question A3
Explain continuous improvement and how it would apply to a sustainability policy.
Question A4
List 3 ways you, as a manager, could support the implementation of a sustainability policy
(eg. employee rewards).
Question A5
a) List 6 potential barriers to implementing sustainability polices
b) List 3 strategies to overcome them.
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Assignment 5 continued
Question A6
Workplace Sustainability Policy Case Study
Task: Prepare one workplace sustainability policy with supporting procedures. There are 3
parts to this Task indicated by A Plan, B Implement, C Create below.
Your topic can incorporate economic sustainability, social sustainability or
environmental sustainability or a combination of these.
Create your answer as a Word document which follows the instructions
below.
You must provide an answer for each Task.
Your layout can be in the form of a guide (for others to follow) or as an internal
procedure which headings and itemised points. You should ensure you
following the structural guidelines provided for you in the Course Learning
Guide topic on Sustainability.
1. Task A – Outline your understanding of how you would prepare and plan for the 1)
development and 2) implementation of one significant sustainability policy and with
supporting procedures for your business (or proposed business).
2. Task B – Outline how you will implement the new policy or procedure within the
business’s wider policies and procedures. That is, your new policy will be one of
possibly many existing policies that are already in place. How do you envisage your
workplace sustainability policy will fit alongside other policies covering for example
compliance procedures and policies. You should also incorporate how you will
engage with relevant stakeholders.
3. Task C – Create the policy including the numbered topics below.
Your policy document should be for a business which is finance in nature eg.
mortgage broking.
Please incorporate all of the points below into your policy. Length should be more
than 500 words ie. more than one typed page. Note, if you are in, or propose to be
in, a sole trader business or working within a structure that has their own business
plan, then not all of the points may be applicable to you however you must cover
them in your assignment. Simply say after the point “may not be applicable to my
business” however most points should be.
Additional assistance:
– We provide a document about Sustainability in Business in Appendix k
– You can utilise the internet to assist with your research.
Points to Cover:
1. Define scope and objectives of your sustainability policy – what you want to
achieve. IMPORTANT: Your policy must include reference to the broad approach
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of Triple Bottom Line principles: minimising negative social, environmental, and
economic impacts and/or creating positive outcomes in these areas.
2. Gather information from a range of sources to plan, develop and implement your
policy and list those sources.
3. Make note of Australian and international standards relating to corporate
sustainability, along with any relevant legislation, regulations and codes of
practice applicable to the organisation.
4. What are the timeframes and anticipated costs to develop and implement your
policy (you may estimate; you do not need to research specific costs or
timeframes).
5. Activities are the specific actions to achieve goals. What activities are to be
undertaken to support your policy scope?
6. Who will do what, that is, what are the assigned responsibilities?
7. What are the performance indicators of success (KPIs)? Research on the internet
if you are not familiar with KPIs.
8. Outline record keeping, reviews and improvement processes within the
sustainability policy and procedures. For example, how is the policy documented;
are there regular audit time frames and improvement evaluations.
9. How will you engage relevant stakeholders in policy development,
implementation and towards continuous improvement? Ensure you include a list
of stakeholders (and their roles) that you believe would be relevant and how they
might assist:
o With development
o With implementation
10. Make reference to common sustainability issues with organisational systems and
procedures. The course unit will assist you.
11. Finally, provide 2 suggestions on how a workplace sustainability policy may be
able to be improved in the future (ie. what would need to change for an
improvement to be appropriate).
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Assignment 5 continued
ASSIGNMENT 5 of 5
– PART B – ETHICS [25 Marks]
Question B1
Name 3 examples of legislation that sets minimum standards of conduct for a Finance Broker
running their own business.
Question B2
In 3-4 sentences, describe how ethics differs from the law.
Question B3
What is an ethical dilemma and give an example you may encounter as a broker?
Question B4
List 3 ways a person could prevent their own biases and psychological tendencies from
impacting negatively when making an ethical decision
Question B5
List 3 potential Organisational Barriers and 3 actions an organisation could take to overcome
them.
Question B6
Ethical Decision Making Case Study
Task: Provide evidence of your ability to apply an ethical decision-making framework to a
workplace ethical situation and determine an appropriate response..
For the purposes of this exercise, we are not asking what you would do in this
situation, but rather what options this broker could take and why.
Scenario overleaf:
FNS50322 Diploma of Finance and Mortgage Broking Management Page 39 of 40
© 2023 The National Finance Institute FNS50322 Assessments – V.030123
Assignment 5 continued
Scenario:
Mark is a Finance Broker, assisting his clients, Stephen and Vivien Lee in the
purchase of a Sydney CBD apartment. Stephen is a long-term client of Mark,
who has provided credit assistance in relation to financing vehicles for
Stephen’s car rental franchise. Vivien works as a manager in her sister’s
restaurant. Mark has only met Vivien once before. At that first meeting,
Vivien made a good first impression and Stephen considers her trustworthy.
Both Stephen and Vivien’s incomes were required to service the new loan.
After submitting the loan, while tidying up the hardcopy documents the Lees
had provided him, Mark notices something odd with the payslips from
Vivien’s job. Mark believes the payslips are fraudulent.
The loan has been submitted, (it has not yet been approved), and Mark
believes, from the bank statements provided, there is sufficient income to
service the loan.
Mark wonders what he should do.
Using this scenario provided, apply an ethical framework, in written form, incorporating
the 8 points listed below. Length to be approximately 500 words, ie. approximately one
typed page.
1. What are the facts?
2. What are the potential biases or psychological tendencies that may affect the
broker’s response to the situation?
3. What, if any, are the legal, regulatory or codes or practice at issue?
4. Who are the affected stakeholders and what impact would this have if no action
were taken? And, if action is taken?
5. What are the ethical principles at stake?
6. What interpersonal skills might the broker need to employ to support a positive
outcome?
7. Should broker decide to take no action, what reasons and/or rationalisations might
he make to justify his decision.
8. What could be done differently in future similar situations, including:
a. Individual actions (by the broker)
b. Organisational policies and practices
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This concludes your five assignments.
Please see the introduction for how to submit to NFI
FNS50322 Diploma of Finance and Mortgage Broking Management Page 40 of 40
© 2023 The National Finance Institute FNS50322 Assessments – V.030123
Mandatory Feedback Questionnaire
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