Finance and Mortgage – Organization Compliance Requirements: Assignment Task:
Objective:
The objective of this Assessment Task is to demonstrate that you have the skills and knowledge required to conduct a client relationship and comply with statutory, industry and organization compliance requirements.
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Task 1: Identify and Interpret Compliance Requirements (FNS40815)
1. Identify compliance requirements
Mortgage brokers face important compliance requirements, the foremost among them being the reasonable lending provisions of the NCCP Act. The penalties for non-compliance include loss of license (for businesses) and removal from the industry (for individuals). If fraud is involved there may also be the criminal penalties of fines and / or imprisonment.
Compliance requirements are not static. It is therefore important to stay up to date with them.
Mortgage brokers also need to keep up-to-date with the actions of the regulatory authorities such as APRA and the Reserve Bank. Their actions may not amount to direct regulation, but through their effects on interest rates and bank lending these authorities can have a very direct impact on the business mortgage brokers are able to do.
A key requirement of the responsible lending obligations is the ‘unsuitability test.’ What must a mortgage broker do to comply with the unsuitability test?
No
List the sorts of items a client’s requirements and objectives could include (as indicated by ASIC).
Leading credit providers and other financial organisations have code of ethics, sometime called codes of conduct. Select one of them and summarise it by itemising its main principles.
In point form, list the key information that the NCCP Act requires to be contained in a Credit Guide.
It is important to keep up to date with compliance requirements so that the required changes can be made to organization procedures and product offerings. Suggest three sources that you can use.
Explain the requirement for Australian Credit Licensees to keep a training register.
Task 1: Identify and Interpret Compliance Requirements Continued
1.2 Interpret, analyse and prioritise identified compliance requirements
Some of the compliance requirements are difficult to meet. Unfortunately, also there have been some ‘rogue’ mortgage brokers who have failed to comply – to the disadvantage of their clients.
The finance planning industry has been plagued by non-compliance in the largest planning groups, with the image of the industry being substantially tarnished as a result. It may not suffer greatly because of the absence of an alternative source of financial advice.
This is not so with mortgage brokers. They are just establishing their reputation and consumers always have alternative of going to the lenders directly.
Select three tasks you perform on a regular basis that are subject to compliance requirements.
Identify the compliance requirements that are relevant to the three tasks selected, indicating the name of the relevant legislation, regulation or code of conduct.
How does your organisation monitor your compliance? https://charteredessay.com/itne2003-install-configure-operate-and-troubleshoot-medium-size-networks/
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