1.1 Three key attributes of a finance broker
Credibility: The ability to convince a client is an effective communication skill of the finance broker. Eun and Resnick, (2012) opined that financial products require salesmanship skills.
Keep track of details: An efficient finance broker must keep a track of all transaction details and maintain all complicated paper works for the purpose of future reference.
Professionalism: The broker should categorize his activities in a tactful schedule in order to maintain transparency in the transactions.
1.2 Evaluation of complying with standards
In case of interacting with clients the finance brokers must comply by the ethical standards and while efficiently delivering a transaction the finance broker must maintain act of integrity, provide high standard of service, act in a way that promotes trust, treat the client with respect and take responsibility of any default.
1.3 Three tips for using LinkedIn
Tip 1: Never miss an opportunity to connect
Contacts are the currency of LinkedIn hence the business person using LinkedIn should not miss a chance to connect with any of the present LinkedIn member.
Tip 2: Map the prospects
With the help of the activity records of the MNCs it is possible to map out the person who is in charge of the business decision making and thus helpful for the purpose of approach for business products.
Tip 3: Efficiently use the search engine
LinkedIn has an advanced search engine facility which will help a business person to find prospects by surname, company, location or keyword.
2.1 Process implemented in business to store and retrieve documents
The use of Electronic Document Management System helps in digitization, indexing, storage, processing and retrieval of important documents in order to facilitate work process of finance professionals. This system will minimize the cost of document processing and increase the value of information (Grieve, 2013).
2.2 Three information given to clients on consumer loan
The three major information given by the Uniform Consumer Credit code are namely to protect customers from obtaining credit to finance their transactions, ensure that adequate credit is provided and govern the credit industry in general. The code also requires the creditors to disclose the terms of credit to the consumers.
2.3 Circumstances where loan may be deemed unsuitable for a client
As per the ASCI guidelines the loan is deemed to be unsuitable fewer than two conditions
If the consumer is not able to show a feasible financial situation: Before issuing a loan the ASCI will judge the consumer’s amount and source of income, length of employment, fixed and variable expenses, credit history and assets.
If the consumer’s requirements and objectives are not justified: In this regard the ASCI will review the credit amount required, timeframe of the credit, purpose and benefit of the credit and flexibility of the credit.
2.4 Benefits for conducting of internal compliance audit for business
- Internal audit can provide management with independent assurance on diverse range of tasks and also help the business to make fair presentation of financial statements.
- Internal audit compliance helps the business to identify risks so that the business can mitigate the risk and achieve the targets.
- The audit also prevents loss of assets and resources and ensures reliable financial reporting.
- The internal audit helps the management in maintaining effective internal controls.
2.5 Penalty for Breach of MFAA’s code of practice
As per the MFAA’s code of practice the penalties applied to the brokers on the breach of norms may make it impossible for the brokers to recover their commission. Moreover the norms prevent the persons under the age of 18 years to enter into broking activities (Madura, 2012).
2.6 Method of informing ASIC of the breaches
As per section 912D any significant breaches are reported to the ASIC. IN case of risk of failing to identify the suitable breach all breaches are reported to ASIC. The breaches are recorded in a Breach register in writing. The breach being reported to the ASIC must contain the date of breach, description, duration, how the breach was identified and rectification of breach. The report should be addressed to Financial services Regulation, regulatory compliance.
3.1 Two environmental sustainability practices implemented in business
Green building: This practice helps in reducing environmental impacts by making sustainable designs, construction, materials and innovative practices like water efficient design and product recycling.
Green purchasing: Availing sustainable procurement and supply chain process and also engage in sustainable promotional process in order to promote the availability of environmentally sustainable products.
3.2 Responsibility of ASIC, COSL and FOS
ASIC regulates the financial services by contributing to Australia’s economic reputation and wellbeing enhancement. The major responsibility of ASIC is to ensure fairness and transparency in financial markets.
COSL provides free, independent and impartial dispute resolution service for non bank lenders, finance brokers, credit unions, building societies, trustees, mortgage managers and servicers.
FOS provides quick resolution services for complaints of small entities as an alternative to the civil court.
3.3 Prioritizing of tasks
- Create a task list
- Leverage the organizational skills
- Set time schedule for all tasks
- Prioritize the tasks according to importance and skills
- Create a time plan for successful completion of the tasks
3.4 Two ways of providing feedback in a positive manner
- To provide information specific, issue focused and constructive feedback will help in motivating the employees in a positive sense
- To avoid any kind of implicit messages suggesting that the work was wrong will be able to make a positive impression in the mind of the consumers (Madura, 2012).
3.5 Explanation of the term CPD and ASCI’s requirement in terms of CPD hours
CPD or Continuing Professional development is the means by which people are required to maintain their knowledge and skills relating to their professions. AS per the norms of ASIC regulatory guide 206, the retail advisers and responsible managers should complete an annual CPD training plan which will include update of knowledge in professional areas having constant changes like law, economics, finance and new product markets.
4.1 Importance and use of keeping the client records updated for a broker
The maintenance of client records will help to cater to the future needs of the clients effectively and hence the business will be able to provide enhanced customer service. Moreover the enhanced customer service also helps to make more new clients for the business.
4.2 3Important items that can be checked for other professionals
Before referring the clients to other professional’s three factors are to be judged effectively namely the social standards, ethical standards and the professionalism of the professional. The professionalism should include compliance of records and effective management of transactions. Moreover ethical norms like honesty and integrity should be also present within the professional.
4.3 Steps relating to expectations of responsible lending
- Primary obligation is to conduct an assessment for the suitability of the credit contract
- Verify the financial situation of the consumers
- Verify the terms and objects of the contract
5.1 Repayment holiday
Repayment holiday refers to a short period of time during which an individual can stop making payments towards a loan because of financial problems. Generally people with high mortgage loans and other credit obligations will find this scheme useful since they will be released from the burden of loan repayment.
5.2 Two ways to maintain product knowledge
The product knowledge can be maintained with the help of constant increment of the knowledge with the changes in the society and environment. Moreover with the help of extensive market research it is possible to increase the product knowledge further. The business can also gain product knowledge from competitors review, employee’s opinion and supplier’s information.
5.3 Suitable loan product
The client can take the option of 12 month discounted variable rate loan which will help the client to buy a new home or make investment in property with 12 month discounted variable rate. This will reduce the burden of interest of the clients (Madura, 2012).
Eun, C. and Resnick, B. (2012). International financial management. New York, NY: McGraw-Hill.
Grieve, I. (2013). Microsoft Dynamics GP 2013 financial management. Birmingham, UK: Packt Pub.
Madura, J. (2012). International financial management. Mason, OH: South-Western, Cengage Learning.