Certificate IV in Finance and Mortgage Broking

Assignment Task

Throughout the assignment, you are to assume that you are a finance and mortgage broker. If you are not currently in a finance and mortgage broker role, your answers are to reflect what you would do if you were working in the finance and mortgage broking industry. You can also draw on your current and past work experiences and refer to the topic notes. You may also need to conduct your own research and consult with people who currently work within the finance and mortgage broking industry.

Financial services legislation and industry codes of practice

1. Conduct some research to identify websites that you could use to keep up to date with regulatory changes and changes in codes of practice in the mortgage broking industry.

• Two (2) Regulations/Legislations and two (2) codes of practice with which you must keep up to date.
• For both, provide the website name and URL address, and explain how these websites are helpful for keeping up to date with changes.

2. (a)  In your own words, describe the key features and the purpose of codes of practice.

(b)  Provide one (1) example of how a code of practice would be implemented into a work situation for a mortgage broker.

3. Remaining compliant with financial services regulation and industry codes of practice is vital.
One way to make sure compliance is being met is through monitoring or internal audits.

You have been asked by your manager to implement an internal monitoring/audit process for your mortgage broking firm to ensure that the credit representatives are meeting their obligations with regulation, legislation and codes of practice.

Outline the monitoring/audit process that you have implemented to ensure compliance. You should include the following:

• How you will monitor/audit compliance.
• Who will undertake the monitoring/audit process.
• What tools you will use.
• How or where you will record the outcomes.

4. (a) How do financial service providers market and/or promote their products and services?

(b) Where can you locate a lending organisation’s current promotions and specials?

(c) Describe how you would identify clients whose needs match products and services that are part of a current promotional strategy.

(d) Describe how you can keep your product knowledge up to date. Include the methods and/or systems you could use to maintain product knowledge.

5. The Australian Banking Association’s (ABA) Banking Code of Practice (BCOP) outlines several obligations for the provision of financial products and services. The Code can be downloaded from the ABA website.

(a) List at least two (2) items of information that must be provided to a client when providing financial products and services.

(b) Refer to the items you listed in part (a) and explain what the items clearly set out.

(c) What four (4) factors does the Code advise about providing banking services to vulnerable clients?

(d) According to the BCOP, how would you identify (become aware of) a potentially vulnerable client and a client on a low-income?

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