FNSSAM413 - Short Answer Questions v1
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FNSSAM413 - Identify and provide initial information to potential new clients (Release 1)
Short Answer Questions
Short Answer Questions
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© Real Estate Academy Australia
RTO 32436
Version 1.0 – August 2022
FNSSAM413 - Identify and provide initial information to potential new clients (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
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© Real Estate Academy Australia
RTO 32436
Version 1.0 – August 2022
FNSSAM413 - Identify and provide initial information to potential new clients (Release 1)
Short Answer Questions
Question 1
According to the MFAA, the Competition and Consumer Act and the National
Consumer Credit Protection Act, summarise the rules and regulations applicable in
the Finance and Mortgage Broking industry that a mortgage broker is to take into
consideration when prospecting for new clients.
Mortgage brokers in the Finance and Mortgage Broking industry need to consider the following rules and regulations when prospecting for new clients: 1.Competition and Consumer Act: Brokers must provide accurate and transparent information, avoid misleading or deceptive conduct, and comply with consumer protection provisions. 2.National Consumer Credit Protection Act (NCCP): Brokers must hold an Australian Credit License or act as a credit representative. They should comply with responsible lending obligations and provide necessary disclosure documents. 3.Mortgage & Finance Association of Australia (MFAA) Code of Practice: Brokers should act in the best interests of clients, disclose conflicts of interest, and adhere to ethical and professional standards. 4.Privacy Laws: Brokers must handle clients' personal information in accordance with privacy principles and obtain consent for data collection and use. 5.Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Laws: Brokers have obligations to prevent money laundering and terrorist financing, including verifying client identities and reporting suspicious transactions. Compliance with these regulations ensures brokers operate ethically, protect client interests, and maintain legal and professional standards.
Question 2
List in the table below the two most well-known methods used by mortgage brokers
to establish contact with prospects. Complete the pros and cons for each method:
Methods
Pros
Cons
Referrals
- Higher likelihood of trust and credibility from referred
prospects. - Potential for high-quality leads. - Cost-effective compared to
other methods.
- Limited reach compared to
other methods.
- Dependence on existing network for referrals. - Relies on the willingness of clients to refer others.
Online Marketing
- Wide reach and potential totarget a larger audience.
- Can attract prospectsactively searching formortgage services.
- Provides opportunities - Requires investment in online advertising and marketing campaigns - Increased competition in the online space. - May require expertise or Page 3 of
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© Real Estate Academy Australia
RTO 32436
Version 1.0 – August 2022
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