FNSFMK515 - Report - Best Interests Duty v1

.docx

School

Academy of Real Estate *

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Course

FNSINC402

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Business

Date

Jan 9, 2024

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docx

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8

Uploaded by MegaSteel12927

FNSFMK515 - Comply with financial services regulation and industry codes of practice (Release 1) Report – Best Interests Duty Report – Best Interests Duty Page | 1 of 8 © Real Estate Academy Australia Version 1.1 – January 2022 RTO 32426
FNSFMK515 - Comply with financial services regulation and industry codes of practice (Release 1) Report – Best Interests Duty You are the compliance officer of a mortgage broking firm and part of your role is to: Identify new legislation and regulations that would affect your business Access and interpret the changes Review operational procedures to reflect changes Communicate changes and implications of regulations to clients and colleagues Implement the new operational procedures according to changes You are to create and implement an operational procedure that reflects the Mortgage broker Best Interests Duty Obligations which came into effect on 1 January 2021. You are required to access the following document (ASIC RG 273) (available in FNSFMB515 - Additional Resources) and use it to complete the report containing in this document. 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 need to Submit: Your completed Best Interests Duty - Report. How to Submit your Assessment : Upload your completed document into the “FNSFMK515 – Report – Best Interests Duty assessment task [1]” in your learner portal. 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 your wish to upload by using the browse/choose file option. Click on finish attempt to submit it for grading. Page | 2 of 8 © Real Estate Academy Australia Version 1.1 – January 2022 RTO 32426
FNSFMK515 - Comply with financial services regulation and industry codes of practice (Release 1) Report – Best Interests Duty Part 1 - Questions Question 1 Source the relevant documents you would need to identify the new BID regulations. The ASIC RG 273, (available in your FNSFMK515 – Additional Resources in your learner portal) what other sources of information you would consider to secure the new obligations? I will collect information from following sources: ASIC website, it is called as a supervisor of financial markets and services in Australia. ATO website, which is the main website to go for tax ruling will have a lot of material. MFAA especially for guidelines on what a mortgage broker can or can’t do. Question 2 Identify and explain in your own words the key changes brought by the new BID Obligations and why was it introduced to mortgage brokers. Key changes are as follows: Best interest duty applies to personal advice. Good quality advice Safe harbour provisions Recognize conflict of interest Conflict priority rules and how it applies to products and services provided by related parties. Mainly to ensure that retail clients receive advice that aligns with their objective, financial situation, and needs. It also ensures the agent act in best interest of the principal when they provide advice. Page | 3 of 8 © Real Estate Academy Australia Version 1.1 – January 2022 RTO 32426
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