nominated course assessor. Your assessor will mark your assessment and you will receive an email advising you if you have been assessed as satisfactory. If you are marked as not yet satisfactory you will be contacted and asked to provide additional information or re-visit the assessment and re-upload your amended case study or written tasks. Please contact our head office if you need assistance with your assessment: Office: +61 8 9344 4088 Fax: +61 8 9344 4188 Email: [email protected] Financial Services Legislation & Compliance A2 © AAMC Training Group Assessment V2.2 FINANCIAL SERVICES LEGISLATION & COMPLIANCE ASSESSMENT CREDIT TRANSFER You may be able to claim credit transfer for a unit/s of competency that you have previously completed with AAMC Training or another RTO. If you have been awarded a record of result or statement of attainment for any of the units detailed below then please go to the Credit Transfer tab in your Learning Centre and follow the prompts. This assessment relates to the following units of competency:  FNSINC401 Apply principles of professional practice to work in the financial services industry  FNSFMK505 Comply with legislation and industry codes of practice Please refer to AAMC Training’s full Recognition Policy for further details. IMPORTANT INSTRUCTIONS  Your answers to each of the tasks are to be typed into this document and uploaded.  No assessment word count has been specified although you are expected to provide good quality answers to each of the questions.  At the time of going to print the web links in this document were current. If you find a broken link please research yourself and advise AAMC Training of the break.  Although some general discussion between students covering the assessment is allowed your responses to each of the questions must be an individual effort.  PLEASE NOTE: AAMC Training only wants to see your own work. Please do not upload parts of the learning guide or instructions on how to complete. When this extra information is uploaded it presents unnecessary work for the assessors and in turn delays our assessment responses. Task 1 – Short Answer questions 1. THE ROLE OF ASIC AND ASX AS REGULATORS a. What role does ASIC play? Click here to enter text. b. List five Acts which ASIC administers. Click here to enter text. c. Explain the Memorandum of Understanding between ASIC and the ASX. Financial Services Legislation & Compliance Assessment V2.2 © AAMC Training Group A3 Click here to enter text. 2. DISPUTE RESOLUTION Explain the difference between IDR and EDR dispute resolution processes for consumer credit. Click here to enter text. 3. TYPES OF INFORMATION RG 175 identifies the two relevant information requirements that financial advisers should seek before providing advice to clients in relation to an investment component. What are they? (RG175.287) Click here to enter text. 4. PRIVACY a. What are the 13 Australian Privacy Principles? Click here to enter text. b. To comply with the Privacy Act, Finance/Mortgage Brokers must: Click here to enter text. c. Explain the restrictions that exist on organisations for using Tax File Numbers as identifiers. Click here to enter text. d. Explain disclosure of sensitive information in relation to direct marketing. Click here to enter text. 5. WHAT SKILLS WILL YOU NEED? Identify three goals that you would need to achieve in your first 12 months as a Mortgage Broker. Utilise the skills audit template below to conduct a skills gap analysis. Explain how you can go about developing the skills needed to achieve your goals. Performance Objectives Required Skills Current Skills Needed Skills Example: Become a Manager in my area Good management skills and team building skills Basic team leadership skills Further leadership skills Organisational skills Financial Services Legislation & Compliance A4 © AAMC Training Group Assessment V2.2 6. STATUTORY RECORDS From what you have learned about the NCCP, provide examples of the statutory records that a licensed credit provider must maintain. For example: A Training Register. (Refer to your Learning Guide – Module 1 Section 8) Click here to enter text. Task 2 – Research questions 1. FINANCIAL SERVICES PROVIDERS You will need access to the internet for this activity. Go online to review the websites of the following financial services providers and answer the questions below:  National Australia Bank  Homeloans Limited  Peoples Choice Credit Union  Pepper Home Loans What are the characteristics of the institution? (Most of this information would be available in the “About us” section of their website.) You may use the table below to record your data; part of the table has been completed to assist you with this exercise. Bank Characteristics National Australia Bank  One of Australia’s largest banks  Has an international presence  Listed on the stock exchange Homeloans Limited  Peoples Choice Credit Union  Pepper Home Loans  After you have completed the table, answer the following in terms of the characteristics of the financial institutions: Financial Services Legislation & Compliance Assessment V2.2 © AAMC Training Group A5 a. What is the main difference between National Australia Bank and Homeloans Ltd? Click here to enter text. b. What type of lender is Pepper Home Loans known as and why? Click here to enter text. c. How does a Credit Union like Peoples Choice differ from other lenders? Click here to enter text. 2. PROFESSIONAL ASSOCIATIONS Please review the information provided on the websites of the following associations and answer the questions below: FPA (Financial Planning Association of Australia) MFAA (Mortgage and Finance Association of Australia) a. What is their purpose/s or role/s of the respective associations in the Finance industry? Click here to enter text. b. How do they cater for consumers? Click here to enter text. 3. FORMS OF ADVICE To answer the following questions in your own words, download and read RG36 and RG175 from the ASIC website: a. What constitutes a financial service? (RG36.2) Click here to enter text. b. What is the difference between personal advice and general advice? (RG175.31) Click here to enter text. c. Identify six occasions where advice may be considered to be “personal advice” (RG175.50) Click here to enter text. 4. KNOWLEDGE REQUIREMENT Financial Services Legislation & Compliance A6 © AAMC Training Group Assessment V2.2 RG146.133 states that ASIC has a list of knowledge requirements that apply to a range of products activities relevant to the financial services sectors. Please provide a list of those requirements (RG 146.134) Download RG146 from the ASIC website, research and list the minimum training standards required for financial product advisers. Click here to enter text. 5. TRIPLE BOTTOM LINE REPORTING The Department of Sustainability, Environment, Water, Population and Communities commissioned a report called “Triple Bottom Line Measurement and Reporting in Australia: Making it Tangible”. Use a search engine to access a copy of this report. After reading the report please express in your own words the five broad categories that capture the current diverse state of play in performance measurement and reporting in Australia? 1. Click here to enter text. 2. Click here to enter text. 3. Click here to enter text. 4. Click here to enter text. 5. Click here to enter text. 6. SUSTAINABLE BANKING Sustainability is not confined to our larger financial institutions like CBA, NAB and IAG. It is also being embraced by smaller institutions such as Maleny Credit Union (MCU) Sustainable Banking. MCU began operations in 1984 as a community based credit union located in Maleny, Queensland. The MCU Board of Directors is committed to long-term sustainability and believes the credit union has social and environmental obligations in addition to providing sound financial management. MCU practices "triple bottom line" reporting as a way of measuring progress and ensuring accountability against its sustainability targets. Review the MCU website and detail how MCU practices socially responsible investment. Click here to enter text. 7. CODES OF PRACTICE a. What are industry and professional codes of conduct? Explain their purpose. Click here to enter text. Financial Services Legislation & Compliance Assessment V2.2 © AAMC Training Group A7 b. What are the major codes of practise that impact on the financial services industry? Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 8. GENERAL CONDUCT OBLIGATIONS List the General Conduct Obligations under RG205. Click here to enter text. 9. SOURCING INFORMATION This activity allows you to demonstrate your competency at researching specific information. Answer the following questions: a. Since the introduction of the Goods and Services Tax (GST) what mandatory requirements are in place for businesses within Australia? Your answer will need to cover requirements other than just reporting. Accessing the ‘Business’ tab on the ATO website will assist you. i. The need for registration requirements ii. The categories (Cash/Accruals) iii. Reporting time frames and the name of the report iv. Collection and remittance of GST? Click here to enter text. a. List three (3) websites that could be useful in providing an indication of legislative and regulatory practice within the financial services industry. Click here to enter text. b. Research and detail the difference between:  Anti-Money Laundering, and  Counter Terrorism Financing.