REAA - FNSFMK515 - Written Questions v1

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FNSFMK515 – Comply with financial services regulation and industry codes of practice (Release 1) Written Questions Written Questions Page | 1 of 9 © Real Estate Academy Australia Version 1.1 – January 2022 RTO 32426

FNSFMK515 – Comply with financial services regulation and industry codes of practice (Release 1) Written Questions Question 1 List at least four financial products that are covered under ASIC’s regulatory framework. There are multiple financial products which are covered as part of ASIC’s regulatory framework: 1. derivatives, 2. general and life insurance, 3. superannuation, 4. carbon units and 5. deposit accounts Question 2 What are the three main elements that the Corporations Act 2001 imposes? The three main elements of the Corporations Act 2001 impose: 1. A single licensing regime for financial sales, advice and dealings in relation to financial products. 2. Consistent and comparable financial product disclosure and 3. A single authorization procedure for financial exchanges and clearing and settlement facilities. Question 3 What costs does an organisation applying for an AFS Licence must consider? Below costs should be considered while applying for an AFS license: 1. Obtaining license costs 2. Ongoing costs / financial audits to maintain the organization 3. Dispute resolution schemes membership and 4. Insurance costs Question 4 For which organisations does APRA provide the most relevant regulatory documents? If an organization provides financial products, such as authorized deposit taking institutions, life or general insurance companies or superannuation funds, the most Page | 2 of 9 © Real Estate Academy Australia Version 1.1 – January 2022 RTO 32426

FNSFMK515 – Comply with financial services regulation and industry codes of practice (Release 1) Written Questions relevant regulatory documents can be sourced via APRA and accessed at www.apra.gov.au Question 5 Which Codes of practice is relevant to the following: Mortgage brokers MFAA or FBAA Codes of Practice Banks Banking Code of Practice Financial Planners FPA Code of Practice Life Insurers Life Insurance Code of Practice Question 6 According to RG 105, Responsible Managers must meet one of the five options for demonstrating appropriate knowledge and skills. a) List the five skills component options (i.e. experience) registered in the ASIC Regulatory Guide. Below are the five skills component options registered in the ASIC Regulatory Guide: Option 1: Relevant industry or APRA standard / Three years relevant experience over the past five years Option 2: Individual assessment/ Five years relevant experience over the past eight years Option 3: University degree and short industry course/ Three years relevant experience over the past five years Option 4: Industry-specific or product-specific diploma (or higher)/ Three years relevant experience over the past five years Option 5: Other demonstration of knowledge and skills b) Pick one of these skills component. Which knowledge component (i.e. qualifications, training) will the Responsible Manager need to meet to comply with the RG 105.47 requirement? Page | 3 of 9 © Real Estate Academy Australia Version 1.1 – January 2022 RTO 32426

FNSFMK515 – Comply with financial services regulation and industry codes of practice (Release 1) Written Questions Relevant Industry and APRA standard, a wide range of relevant and adopted standards for the knowledge component are accepted by Industry and APRA for the responsible manager to meet the comply with the RG105.47 requirements. The onus is on you to demonstrate the relevance of a standard to your responsible manager’s role. Your responsible manager must also have three years relevant experience over the past five years. Question 7 Responsible corporations must self-regulate themselves to prevent, detect and correct breaches of legal and regulatory obligations. a) What department needs to be established within the organisation to respond to its regulations and licence conditions and execute procedural requirements? A compliance department needs to be established within the organization to respond to its regulations and license conditions and execute procedural requirements. b) What are the five areas of responsibility that this department will oversight? Compliance department has these 5 areas of responsibility:  Identification (of risks),  Prevention (protect the organisation from those risks),  Monitoring and detection (report effectiveness of the Prevention process),  Resolution (of compliance difficulties), and  Advisory (on rules and controls). Question 8 What are the implications of the MFAA Code of Practice section 9.1 on a mortgage broker’s Privacy Management Process? Members must at all times keep information, that has been provided by a Customer, confidential and secure and only disclose information as required by law, the MFAA Disciplinary Rules or as authorized by the Customer. Page | 4 of 9 © Real Estate Academy Australia Version 1.1 – January 2022 RTO 32426

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