REAA FNS40815 Fnsasic 302 Assessment 2 Ans PDF

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Assessment information You work as a trainee financial adviser with ZYX Financial Services Pty Ltd (ZYX). As part of your training, your supervisor has asked you to review an example statement of advice....

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FNS40815 Certificate IV in FINANCE & MORTGAGE BROKING FNSASIC302 Develop, present and negotiate client solutions

Assessment 2 - Performance

FNS40815_ FNSASIC30 2 Assessment 2

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Released December 2018 Page 1 of 5

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Assessment information You work as a trainee financial adviser with ZYX Financial Services Pty Ltd (ZYX). As part of your training, your supervisor has asked you to review an example statement of advice.

Instructions to complete this assessment In order to complete this assessment, you are required to complete the following sections consecutively. Details and specific instructions are provided within each section and on the form/templates provided.

Supporting documents To find the relevant supporting documents, please refer to the Assessment Resources folder, located within the FNSASIC302 Develop, present and negotiate client solutions needs section of your course, or click the link above.

Section 1 – Review Statement of Advice Requirements Download and review “John Smith Statement of Advice November 2014”, located in the Assessment Resources folder.

Section 2 – Assess SOA Now complete each of the following steps: 1. John Smith has asked for advice about his life insurance, income continuance insurance and trauma insurance. The SOA provides recommendations for each of these insurances (P32). In order to comply with industry regulations, what must the adviser do before these products transfer risk to the insurance companies? John Smith has inquired about life insurance, income protection insurance, and trauma protection insurance. For each of these insurances, the statement of advice (SOA) makes recommendations. Before goods transmit risk to insurance firms, the adviser must undertake the following to comply with industry regulations: The Corporations Law stipulates that an adviser must have reasonable grounds to make such suggestions. It indicates that a financial advisor must undertake thorough research of the client's

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2. Has the adviser to John Smith clearly explained the characteristics, benefits and impacts of switching financial products to John Smith? In the statement of advice (SOA) the adviser has mentioned that under Section 947D of the Corporations Act requires additional information to be disclosed where a SOA recommends one financial product to be replaced in full or part by another. While mentioning the switching of funds the adviser has clearly explained the relative merits of recommended products and the original product. Adviser has recommended switching the funds to John to get higher interest rate and there is also no significant cost connected to the recommended action and no significant consequences.

3. The SOA presents appropriate financial products and services to John Smith. What must John Smith do now to successfully complete this SOA process? John has to confirm to the advisor whether he fully understands and agrees with the proposed plan. John should read through a product disclosure agreement and he should let the advisor know if there is any questions or parts he don't fully understand to have the advisor explain. If John agree to everything, he should sign an "Authority to Proceed" form and forward it back to the institution, advisor or planner. John should contact the planner if he experience major changes in circumstances as it might be necessary to make adjustments to the recommended strategy. If John approved and signed SOA has been received by the adviser by post, the adviser should countersign the SOA and arrange for a copy to be sent to the client. For the time being, the advisor should send a confirmation, such as through e-mail to John confirming that the agreement has been signed and all appropriate documentation has been exchanged. And that the SOA is about to be put into action.

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Checklist for submission Please use the following list to ensure the correct amount and type of documents have been completed and are ready for submission. Assessment 2: The file name should include your first name and surname, i.e. Assessment 2_FNSASIC302_Jo Brown

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