FNSINC514 - Short Answer Questions v1
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FNSINC514 – Apply ethical frameworks and principles to make and act upon decisions (Release 1)
Short Answer Questions
Short Answer Questions
Page 1 of
7
© Real Estate Academy Australia
RTO 32436
Version 1.0 – July 2022
FNSINC514 – Apply ethical frameworks and principles to make and act upon decisions (Release 1)
Short Answer Questions
What you need to do: Answer the questions below by writing in the space provided. You are required to answer all questions correctly. If correct, you will see
‘Satisfactory’ or if incorrect you will see ‘Not Satisfactory’ in your grades section of
your learner portal next to the assessment name. The assessor will provide
feedback and a Record of Results in the assessment task once graded. You will be
required to resubmit your work for any ‘Not Satisfactory’ assessment tasks. What you will need: Use the learner material provided in your online student portal as well as research
materials such as books, internet, magazines, workplace documentation etc. to
assist you in gaining the knowledge required to answer the questions. Remember
that the assessment is self-paced and open book, so you can use whichever
resources you have to answer the questions.
What you need to submit: Your completed Short Answer Questions. How to Submit your Assessment:
Upload your completed document into your learner portal following the instructions
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© Real Estate Academy Australia
RTO 32436
Version 1.0 – July 2022
FNSINC514 – Apply ethical frameworks and principles to make and act upon decisions (Release 1)
Short Answer Questions
Question 1
If a mortgage broker does not address situations presenting a risk for potential
conflicts of interest, what regulatory requirements/obligations will they be breaching?
Please develop your answer.
If Mortagage broker Failure to address situations presenting a risk for potential
conflicts of interest may lead to breaches of the below regulations and obligations:
National Consumer Credit Protection Act (NCCP): Under the NCCP Act 2001
responsible lending obligations imposes on mortgage brokers, and requires them
to act in the best interests of the client.
Credit License Requirements: Mortgage brokers in Australia are required to obtain
and maintain an Australian Credit License (ACL) issued by ASIC. License holders
must comply with the conditions of their license, which include adhering to
responsible lending practices and managing conflicts of interest appropriately.
ASIC Regulatory Guide 209 (RG 209): Mortgage brokers are expected to consider
and manage conflicts of interest as part of their responsible lending obligations.
Code of Ethics: Mortgage brokers who are members of these associations are
expected to adhere to the applicable code of practice, which includes provisions
related to managing conflicts of interest.
Australian Securities and Investments Commission Act 2001 (ASIC Act): If a
mortgage broker fails to disclose conflicts of interest or provides misleading
information, it may be considered a breach of the ASIC Act.
Question 2
a)
Identify what a situational barrier is and describe at least two factors that impend
the analysis of an ethical situation.
Situational barrier is an obstruct the analysis of an ethical situation and/or the response to be provided.
There are many situational factors affecting the analysis of and response to ethical
situations. These factors include time and peer pressures, transparency, fatigue,
and environment. 2 of many Factors are
1. Time Peer Presusre: A person under time pressure is more likely to act less
ethically than not. This also applies to people who are tired as self-control is
depleted. People under peer pressure usually want to fit-in to succeed within an
Page 3 of
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© Real Estate Academy Australia
RTO 32436
Version 1.0 – July 2022
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