FNSSAM413 - Short Answer Questions v1

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Swinburne University of Technology *

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FNS50322

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Business

Date

Feb 20, 2024

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docx

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7

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FNSSAM413 - Identify and provide initial information to potential new clients (Release 1) Short Answer Questions Short Answer Questions Page 1 of 7 © 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 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 provided within the assessment task. You can drag and drop the file into the window or use the add file icon in the top left of the submission window and select the file you wish to upload by using the browse/choose file option. Click on “finish attempt” to submit it for grading. Page 2 of 7 © 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 7 © Real Estate Academy Australia RTO 32436 Version 1.0 – August 2022
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