FNSINC401A - Apply principles of professional practice to work in the financial services industry PDF

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Apply principles of professional practice to work in the financial services industry...

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FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context

Assessor Declaration:

Assessor: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I had provided appropriate feedback. I also declare that I have undertaken the indicated assessment integrity checks. Assessment integrity check

Yes

No

Google check for plagiarism Check for copying/collusion Check for authenticity (own work) Followed decision making rules Assessor Name: Assessor Signature:

Date:

You must complete the following questions correctly to demonstrate competency in this unit.

2 © MWT Institute RTO #6954 FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context CAT 1 Aug 2014

FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context

Read the case study and then answer the following questions

Scott is a Financial Advisor of Rocket Finance Ltd. and has been approached by a retired couple asking for financial advice regarding their retirement. The couple have a limited amount of cash flow on a monthly basis and would like to know the safest investment option as they are not able to afford any investment loss. Their target is very clear: maintain a steady and healthy growth of their assets. After talking to them, Scott recommends an investment in property market in Queensland which he promises a high return for the next 20 years. The property market in Queensland has witnessed a strong growth in the last 10 years due to a number of high rises development on gold coast and sunshine coast. But the experts warn that an oversupply of rental properties have put pressure on long term rental growth. his partner Ms Con a real estate agent based in Queensland. The next morning, the couple got a call from Ms Con inviting them to fly to Queensland for an inspection of an apartment. The couple is not sure about this so they contacted Scott and expressed their concerns saying they can not affor market. They fly to Queensland, inspect the apartment and are pushed to sign the contract by Ms Con. s Con then dropped them off at the airport. When they returned to Melbourne, they heard from friends that there have been many overvalued properties in Queensland which are sold to pensioner and retirees in the area they purchased. They were very scared and called Scott. To their surprise Scott could not care less about their concern and finished the conversion in a few minutes. The couple was left distressed. After a few weeks, an investigation on Today Tonight reveals that Rocket Finance has been involved in financial scams and most of the properties they recommended have quality defects and have been ordered to be rebuilt.

3 © MWT Institute RTO #6954 FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context CAT 1 Aug 2014

FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context

Question 1 What is the impact of an oversupply of rental apartments on

Question 2 The couple has approached you for advice in investment options. Conduct a search on MoneySmart website and explain to them the pros and cons of a managed fund.

Question 3 Is the real estate agent authorised to provide financial advice?

4 © MWT Institute RTO #6954 FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context CAT 1 Aug 2014

FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context

Question 4 As a financial adviser, Scott has access to various reports on the Queensland property market. Is he legally obliged to advise the couple of the potential risks in property investment? Please explain whether Scott has breached the following protocols: Confidentiality The misuse of company resources Duty of care Non-discriminatory practices Conflict of interest

Question 5 The couple is very keen in responsible investment which they believe environmental impacts should be considered in business planning. a. Explain your understanding of triple bottom line principles summarise one of the key trends and themes.

5 © MWT Institute RTO #6954 FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context CAT 1 Aug 2014

FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context

Question 6 After careful consideration, Scott works out a home loan of $200,000 at the cost of 5.1% that needs to be secured for the investment. The couple want to make monthly payment based on a 15 or 20-year term and want to know how much interest they can save by paying off the mortgage in 15 instead of 20 years. Use the mortgage calculator compare function for calculation and attach the results including the comparison graph in a Word or Excel document. Upload the document with your PDF file to Moodle. Question 7 As a team leader, Scott finds it challenging in maintaining dynamic team morale. He would like some advice in the following areas: Providing feedback to recognise individual efforts and contributions Encouraging team members to take responsibility Supporting team in performance barriers Establishing himself as a role model in workplace Refer to topic 7.4 to provide Scott with some advice in improving team dynamics.

6 © MWT Institute RTO #6954 FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context CAT 1 Aug 2014

FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context

Question 8 Scott usually has the following daily tasks to complete: Recruiting new clients on an ongoing basis keeping current client plans up-to-date Devise debt liquidation plans for certain customers that include payoff priorities and timelines Research and investigate available investment opportunities to determine whether they fit into financial plans Sell financial products such as stocks, bonds, mutual funds, and insurance if licensed to do so a. What other daily tasks may be involved for Scott as the team leader? Give three more examples and prioritise all the tasks. Urgent tasks

Not urgent but important tasks

Tasks to be delegated

7 © MWT Institute RTO #6954 FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context CAT 1 Aug 2014

FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context

b. In an attempt to address the service improvement, Rocket Finance decides to outsource the debt liquidation device and research in investment opportunities. Which of the other daily tasks may be improved as a result?

Question 9 Rocket Finance is going through an expansion stage and employed a few junior financial advisors who are currently doing front line service and administration work. The company aims to train those junior financial advisors to become fully licensed financial advisors. Scott is asked information: a. What modules are required to be completed for comprehensive compliance according to the Candidate Handbook

b. What is the total cost of the RG146 compliance solution program for a non-member?

8 © MWT Institute RTO #6954 FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context CAT 1 Aug 2014

FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context

c. Scott is required to participate in continuous professional development (CPD) to earn at least 35 CPD points for this year and he asks you to visit Association of Superannuation Funds of Australia

xcel spreadsheet including

approved activities, number of points and scheduled completion timeframe. An example is given as guidance. Approved activities

number of points

To be completed on

ASFA 1 day workshops

6 points per day

20 October 2014

Upload the Excel spreadsheet with your PDF file to Moodle.

9 © MWT Institute RTO #6954 FNSINC401A Apply principles of professional practice to work in the financial services industry FNSACC403B Make decisions in a legal context CAT 1 Aug 2014...