FNS50315 Fnscus 501 Assessment 1 V1 PDF

Preview

Summary

Download FNS50315 Fnscus 501 Assessment 1 V1 PDF

Description

FNS50315 Diploma of Finance and Mortgage Broking Management FNSCUS501 Develop and nurture relationships with clients, other professionals and third party referrers

Assessment 1

FNS50315_ FNSCUS501 Assessment 1 V1.0

REAA

Released January 2019 Page 1 of 7

4609babb-de12-4f1b-948c -b7d9d0edade3

Activity 1 Clause 4 of the CBA Mortgage Broker’s Code of Conduct says: “I will personally interview and identify (under AML/CTF requirements) all customers, including those introduced to me via any referral source.” Why will compliance with this clause help to maintain CBA’s ethical standards. (Outline the organisation’s social, business, and ethical standards relevant to building relationships and business).

Activity 1 Answer CBA requires the brokers to truly understand their customers, their requirements, their background before making recommendation for product is suitable for their need. By the requirements of AML/CTF, a personal interview must be conducted between the broker and the customer helps maintain ethical standards because it states that where possible, a face to face interview must be held unless 1 or more person(s) is interstate/overseas or simply can not make it, then an interview using an Online portal where cameras are available may be used. This is only achievable after a broker personally interviewed them. Compliance of above clause is helpful not only to maintain CBA's ethical standard but also to assist brokers help their client in making the biggest purchase of their life. When undertaking such a big commitment it is also crucial to the clients to be able to build trust the broker in the best possible

V1.0

REAA

Released January 2019 Page 2 of 7

4609babb-de12-4f1b-948c -b7d9d0edade3

Activity 2 In an organisation, information flows forward, backwards, and sideways. This information flow is referred to as communication. Communication channels refer to the way this information flows within the organisation and with other organisations. In this web known as communication, a manager becomes a link. Decisions and directions flow upwards or downwards or sideways depending on the position of the manager in the communication web. As organisations grow, managers cannot rely on face-to-face communication alone to get their message across. A challenge the managers face today is to determine what type of communication channel should they opt for to carry out effective communication. To make a manager's task easier, the types of communication channels are grouped into three main groups: formal, informal, and unofficial. Identify and explain the terms formal and informal organisational communication channels. (Explain the role of different communication channels and tools in relationship development).

Activity 2 Answer Formal communication is communication through pre-defined channels set by organisations. They are typically conveyed from the leadership group with visions or strategic goals to departmental or team leadership subsequently funnels down to lower level members at operational level. It is backed by organisational procedure, and it is necessary to fulfill the goals of the organisation. This communication is usually one directional. Informal communication is more relational than formal. There is usually no pre-determined channels and can happen anywhere within the organisation. The primary goal of this communication is to improve collegiality and establish relationships between colleagues, and the supervisors with their subordinates. Since it is not defined by any channels, the speed of communication moves a lot faster, but it is without any official documentation or structure.

V1.0

REAA

Released January 2019 Page 3 of 7

4609babb-de12-4f1b-948c -b7d9d0edade3

Activity 3 Explain some of the benefits of entering into a referral partner negotiation on the basis of not having a set of preconditions, assumptions, or expectations for gaining agreement. (Describe effective interpersonal skills, and negotiation and communication principles).

Activity 3 Answer To grow a mortgage broking business, brokers need to receive referrals not just from their customers, but also develop a network of professionals who would refer their clients to them. The benefits to the referrers of such an arrangement are: Improved customer retention via regular communication to their clients (such newsletters) or corporate social functions. Exchange of leads as the combined clients can be made aware of the services offered by both professionals. Adding mortgage referral to the range of services already provided to their clients. Mortgage brokers have several avenues to explore and build a relationship for referral sources. These could from the legal advisers, accountants, real estate agents, interior designer, builders and other industry professionals who have clients looking to obtain mortgage financing. Brokers need to convince potential sources that they are good at what they do and are responsible and trustworthy. The relationship takes time to create and sustain however many times these usually will result in long

V1.0

REAA

Released January 2019 Page 4 of 7

4609babb-de12-4f1b-948c -b7d9d0edade3

Activity 4 Identify and describe 3 reasons a mortgage broker might benefit for joining an industry association, such as the Mortgage and Finance Association of Australia. (Identify relevant associations, conferences and other relationship building opportunities).

Activity 4 Answer Some benefits mortgage brokers may have by joining an industry association such as MFAA are being able to be up to date with the latest news, laws and regulations. Having an association could sometimes advocate for the rights for the industry. Brokers rely on networking, MFAA will also find business and networking opportunities for their members. They provide an opportunity to network through their events and conferences, referrals and recommendations for their members and give credibility by showing you're a part of a trusted well known organisation on your business cards. Working with industry associations can also be a sign that proves the broker's commitment to abide by professional, ethical standards. It will give potential customers the confidence the broker is committed to the clients by always having their best interest at heart.

V1.0

REAA

Released January 2019 Page 5 of 7

4609babb-de12-4f1b-948c -b7d9d0edade3

Activity 5 The key to networking relationship development is to be a communicative, approachable, and openminded person without prejudices, that is keen to exchange information with other individuals. Additionally, it is always helpful to set some goals that you want to achieve by business networking efforts. Identify and describe some networking goals a new mortgage broker might have. (Identify relevant business contexts for networking and relationship development).

Activity 5 Answer Networking is a deliberate activity to build, reinforce and maintain relationships of trust with other people to further goals. Professional networking is networking which focused on professional goals. This could be to just learning more about the industry, learn the most effective way to successfully build a client/referral base, finding a mentor to follow etc. A new broker must ask themselves to determine what sort of specialised help/advice they need to seek. Another goal for professional networking to share common issues, perhaps working today to find the best idea.

V1.0

REAA

Released January 2019 Page 6 of 7

4609babb-de12-4f1b-948c -b7d9d0edade3

Activity 6 Mortgage brokers generally provide their services free of charge to interested borrowers, and are instead compensated by lenders. a) How might this arrangement lead to a conflict of interest? b) What legal rights does a client of a mortgage broker have? (Outline the key requirements of relevant legislation, regulation and industry/professional codes of practice that apply to relationship management).

Activity 6 Answer It may lead to a conflict of interest as the broker may be not acting in the best interest of the client. One possibility would be the broker recommends a loan that has a higher interest rate because it pays better commissions to the broker. This is not in line with the client if they would like to minimise monthly payments. The same thing could happen if the broker recommends withdraw more from their overdraft just so the broker could would receive more commission as a result. It is crucial that clients are never disadvantaged as a result of conflict of interest. By the MFAA If a commission or other benefit will or may be paid by or to a broker for, or in connection with, provision of credit to a customer, the member must always disclose to the customer that fact and: a. the name of the person by whom the commission or other benefit is payable. b the name of the person to whom the commission or other benefit is payable

V1.0

REAA

Released January 2019 Page 7 of 7...