FNS50315 Fnscus 501 Assessment 1 V1 PDF

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Diploma of Finance and Mortgage Broking Management...

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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

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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 An organisation's ethical practises have a huge impact on how it operates its business. Business ethics are characterised by management and staff ethical principles and the manner in which business is done at both a strategic and operational level. A constructive attitude to upholding ethical practises will lead to an improved reputation and a sustainable market advantage.

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Released January 2019 Page 2 of 7

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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 Brokers need to obtain referrals not only from their customers, but also build a network of professionals who refer their customers to them in order to grow a mortgage broking business.It is very important to establish a continuous flow of contact with substantial referral sources. Keep in touch, but never be dominant. Constructing a database and taking notes on each call is a helpful way to keep track of referral sources. Brokers should also remember that you should get back to that person in a timely way if a source contacts you.Don't wait too long for a return phone call by making a referral source.

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Released January 2019 Page 3 of 7

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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 make the relationship work, getting into the right frame of mind is completely necessary for mortgage brokers. Financial planners and accountants consider the concept of a referral partnership. One of the strongest sources of business leaders is third-party referrals, but many referral relationships fall by the wayside. The framework was perhaps entered into too quickly. Or one group had no idea what they were searching for. Or maybe they just didn't have enough in common.

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Released January 2019 Page 4 of 7

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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

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Released January 2019 Page 5 of 7

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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 Instead of including informal, non-business communications, professional networking focuses on interactions and relationships of a commercial nature. Professional networking can take place either offline or online in any situation, location or site, but there are many professional networking platforms and forums. In order to achieve your objectives, networking is a deliberate activity to create, improve and sustain relationships of confidence with other people. Professional networking should always focuse on professional objectives. A very critical part of professional networking is that it's not only about trading business cards, but about building relationships and confidence. A real partnership needs to be established in order for effective networking to take place.

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Released January 2019 Page 6 of 7

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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 a. The Mortgage Broker should fully disclose to any Customer or potential Customer any actual, apparent or potential conflict of interest of which a Member is or ought to be, aware, to the extent that such a conflict of interest may reasonably concern a Customer.

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REAA

Released January 2019 Page 7 of 7...