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Diploma of
Finance and Mortgage
Broking Management
FNS50311
Learning guide
AAMC Training Group is an approved National Registered Training Organisation (number 51428) and its
accredited courses are approved under the Australian Qualifications Framework. Some courses also provide the
education requirements to give financial product advice in accordance with the Australian Securities and
Investment Commission’s (ASIC) Regulatory Guide 146 (RG146 – previously PS146).
Copyright
© Copyright 2013 AAMC Training Group Pty Ltd
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means
without permission in writing from the author, AAMC Training Group.
Legal Notices/Disclaimer
While every attempt has been made to verify the information provided within this publication. AAMC Training
does not accept any liability for any errors, omissions, lack of care, default, negligence or contrary interpretation
of the subject matter herein. This publication is not intended for use as a source of legal or accounting advice.
AAMC Training stresses that the information contained herein is subject to varying State and Local laws and
regulations. All users of the information contained in this publication are advised to confirm applicable laws and
regulations prior to using the information in their business. No liability is accepted for any information or
services which may appear in any other format. No responsibility is taken for any information or services which
may appear on any linked websites.
The user of this publication assumes sole responsibility for the use of these materials and information. AAMC
Training assume no responsibility or liability for any loss or damage of any kind whatsoever arising as a result of
any user of these materials and information acting on the opinions, advice and recommendation expressly or
implicitly detailed herein. AAMC Training expressly does not guarantee any results you may or may not get as a
result of following the recommendations and advice contain herein. The users must test everything for
themselves prior to implementation.
Acknowledgements
This learning guide has drawn on the published works of the AAMC Training Group and the Department of
Education, Science and Training (DEST).
Last updated: 25 May 2015 Version 2
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group Contents 1
Contents
INTRODUCTION
Welcome to the AAMC Training Group (AAMC) 1
Course content 3
How to use this learning guide 4
Student policies 5
Trainers/Assessors 6
Learning tools 8
Elements of competency 9
LEARNING GUIDE MODULES
MODULE 1 Financial Services Professional Practice, Legislation and Codes of Practice
Introduction 26
Section 1 The Australian financial sector and the financial system 27
Financial services providers 38
The regulators and their impact on the Australian financial sector 48
Financial services professionals 57
The professional collections industry 59
External factors and the Australian economy 63
Section 2 Industry guidelines, procedures and legislation 87
Key components of the compliance framework 88
The regulatory framework 88
The judicial tier of compliance 89
Financial Services Regulation (FSR) 95
Ethics 111
The National Credit Code (NCCP) 116
Australian Consumer Law – Unfair contract terms and personal property securities 154
Personal Property Securities 160
Meeting privacy requirements 160
Money laundering and terrorism financing 183
Other legislation 189
Section 3 Managing information 193
Documentation used in the finance industry 194
Section 4 Identifying sustainability issues for the financial services industry 203
The Global Financial Crisis (GFC) and sustainability 203
Sustainability and the Australian financial services sector 212
Section 5 Participating in and facilitating work team activities 217
Communicating with customers 221
Best practice 221
Complaints 222
Section 6 Planning 223
Taking into consideration time, resources and other constraints 223
Planning and the organisation 228
FNS50311 Diploma of Finance and Mortgage Broking Management
Contents 2 © AAMC Training Group Learning guide
Role of teams in the workplace 230
Section 7 Developing and maintaining personal competency 235
Section 8 Industry Codes of Practice 241
Identifying changes and implications of laws, rules and regulations 252
Maintaining statutory records 258
MODULE 2 Lending process
Section 1 Lenders and loan types 263
Learning outcomes 263
Types of lenders 264
Types of loans 268
The National Rental Affordability Scheme (NRAS) 276
Self-Managed Super Funds 279
Non-resident lending (FIRB) 282
Personal loans 287
Equipment finance overview 288
Suite of equipment finance products 292
Equipment finance – specialist areas 301
Equipment finance – other product features 302
Low doc financing – commercial and equipment finance 303
Commercial property lending overview 304
Deposit bonds 304
Section 2 Loan characteristics 307
Learning outcomes 307
Core lending products 307
Construction loans 315
Popular loan features/packages 318
Other loan features 322
Fees 322
Bank peripherals and our obligations 323
Risk management products 325
Gearing 328
Section 3 General lending criteria 331
Learning outcomes 331
Acceptable forms of income 331
Supporting documentation required 335
Acceptable forms of security 338
Unacceptable forms of security 339
Loan to value ratio (LVR) 339
Section 4 Thought process for application and assessment 341
Learning outcomes 341
The initial thought process 341
Client Needs Review/Fact Find 343
The seven C’s of credit 343
Statement of position 347
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group Contents 3
Risks and mitigants 348
Qualifying rates 349
Debt Service Ratios (DSR) 349
Net Surplus Ratios (NSR) 350
Uncommitted Monthly Income (UMI) 352
NET SERVICING RATIO (NSR) 353
Loan serviceability calculators 354
Lenders Mortgage Insurance (LMI) 354
Veda advantage and credit challenges 357
Section 5 The loan–from interview to settlement 363
Learning outcomes 363
The application enquiry 364
The application process 368
Veda Advantage checks 371
Submission to the financier 371
The approval/decline process 373
Settlement 373
Residential mortgage loan process diagram 377
Section 6 Calculation of fees, grants and concessions 379
Learning outcomes 379
Property purchase fees 379
Loan establishment fees 382
First home owners 383
Section 7 Process applications for credit 389
National Consumer Credit Regulation 389
Credit process overview 391
Identifying types of applicants 391
Lending fundamentals 392
Processing applications 392
Completing the loan process 393
Fully approved loan applications 406
Organisational policies & procedures and standard operational procedures 409
Section 8 Reading and understanding financials 411
Learning outcomes 411
Financial reports 411
Self-employed borrower 418
Nature and formation of companies 419
Trusts 423
Self-employed case study 425
Section 9 Develop and nurture relationships 429
MODULE 3 Contribute to OHS Hazard Identification and Risk Assessment
Section 1 Health and safety practices in the workplace 437
Workplace health and safety (WHS) laws 437
Characteristics of a proactive health and safety compliant workplace 441
FNS50311 Diploma of Finance and Mortgage Broking Management
Contents 4 © AAMC Training Group Learning guide
What is ‘duty of care’? 442
Organising and maintaining workplace safety procedures 442
Monitoring work procedures 443
Promoting workplace Health and Safety practices 443
Why can substance abuse be a problem? 444
Section 2 Risk Management Procedures 445
Steps 445
Section 3 The Company Health and Safety Plan 461
Why have a workplace health and safety plan? 461
What is a health and safety program? 461
Section 4 Safety Committee 467
Section 5 Hazard identification and control 469
Identifying types of hazards 469
Seven key elements of an effective hazard control program 470
Section 6 Accident investigation 481
The process 481
MODULE 4 Complex Lending
Section 1 Understanding financials of corporate structures 491
Learning outcomes 491
The regulators 491
Nature of companies 492
The sole trader 499
Trusts 500
Reading financial reports and managing risk assessment process 504
Financial reports 505
Reading financials with confidence 525
Understanding financial ratios 531
Section 2 Lending products and services 541
Learning outcome 541
Commercial banking 541
Interest rates 542
Securitisation 544
Commercial finance 546
Product lending overview 547
Business/commercial products 548
Other loan products 549
Product disclosure statement booklets 554
Interest charging methods 554
Loan terms 554
Lending value ratios 554
Property development loans 555
Valuations 557
Eligible securities 557
Fixed and floating charge 559
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group Contents 5
Directors guarantees 559
Environmental responsibility 560
Benchmarking 561
Insurances 564
Buy/sell agreements 564
Key person insurance 565
Section 3 Loan application—structured process 567
Learning outcome 567
Loan application overview 567
Starting the loan process journey 568
Attending the loan interview 569
Analysing the information 570
Presenting your recommendation to client 571
Loan application notes submission guideline 572
Signing of loan offer by clients 577
Settling a loan 577
Complaints handling scheme 578
Self-Managed Super Funds 579
Section 4 Equipment and vehicle finance 583
Learning outcome 583
General overview 583
Typical client profile 585
Assets that can be financed 586
Sale and lease back facilities 594
Cross sales 594
Information required by the lenders 594
How lenders assess the loan application 596
Pre-approved limits 597
Valuations 598
Exercise Case Study: Chattel mortgage 601
MODULE 5 Risk Management 621
Section 1 Identify and apply risk management processes 623
Defining risk 623
The risk management process 626
Risk management strategy 629
Monitor and review effectiveness of risk treatment/s 654
Credit risk analysis 659
The five Cs of credit 661
Parser analysis 671
MODULE 6 Marketing Strategies
Section 1 Grow the practice 677
Learning outcome 677
The approach 677
Business planning 677
FNS50311 Diploma of Finance and Mortgage Broking Management
Contents 6 © AAMC Training Group Learning guide
Marketing strategy 678
Developing a promotional plan 683
How to write a marketing plan 686
Identifying finance markets 689
Leveraging off relationships 690
Finding prospects 692
Developing a growth plan 704
Implementation plan 706
MODEL ANSWERS
Model answers 707
APPENDICES
Appendix 1 Statement of Credit Advice 723
Appendix 2 Client Needs Review 731
Appendix 3 Approved Product List Commission Rates 739
Appendix 4 Complaints Resolution Scheme 741
Appendix 5 Documentation checklist 743
Appendix 6 Competitor watch/analysis 745
Appendix 7 Marketing action plan 747
Appendix 8 Marketing and advertising budget template 749
Appendix 9 Cash flow template 751
Appendix 10 Sales mix budget template 753
Appendix 11 Team leave roster 755
Appendix 12 SWOT Analysis 757
Appendix 13 Schedule of drawings 759
Appendix 14 Asset register 761
Appendix 15 Business loan application form 763
Appendix 16 Guide to writing a Marketing Plan 777
ASSESSMENT
Assessment information 791
Course Evaluation 793
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group 1
Welcome to the AAMC Training Group (AAMC)
“I was able to stand on the shoulders of my teachers and see a world
that I couldn’t otherwise see”
Joel Klein, New York City Schools Chancellor
Congratulations on your decision to learn with AAMC Training Group.
We are pleased that you chose to complete this course with us and we
look forward to assisting you to further develop and enhance your
current skills in Finance/Mortgage Broking Management.
AAMC Training is a nationally registered training organisation that
delivers total training and consultative solutions to the financial services,
training, retail, insurance brokers, financial planners, real estate,
business brokers and settlement industries.
AAMC Training offers face-to-face, online or correspondence learning,
with an emphasis towards a blended learning model.
By using a holistic and consultative approach to training, AAMC Training
is strongly placed to assist clients with their personal growth and
business development. There is a strong point of differentiation from
other training companies for AAMC Training, by being able to offer
clients a comprehensive scope of courses to meet their every need.
FNS10 Financial Services Training Package
Job roles change constantly to reflect business demands and customer
expectations. In this regard the FNS10 Financial Services Training
Package shows significant inclusion of customer service and sales and
marketing skills in qualifications. Front line and customer contact centre
staff in the industry do not just process financial transactions but build
relationships with customers and clients and actively promote products
and services within the bounds of regulation. Use of information
technology and a team-based environment for all aspects of work are
also common themes.
While specialist industry skills are the foundation of the FNS10 Package
all qualifications include occupational health and safety and
sustainability skills necessary for any modern workplace and there is
more commonality of units of competency across the Package and far
more use of imported units, particularly from the Business Services
(BSB07) Training Package to ensure flexibility and portability of skills.
The FNS10 Training Package has deliberately flexible qualifications
where industry sector convergence is occurring, the most obvious being
in banking where similar services and products are increasingly offered
through credit unions and other deposit-taking organisations. Similarly
providing financial advice is covered in various qualifications such as
insurance specialisations and superannuation and not just in financial
planning roles.
FNS50311 Diploma of Finance and Mortgage Broking Management
2 © AAMC Training Group Learning guide
This Diploma of Finance and Mortgage Broking Management
FNS50311 course specifies the competencies required to enable
individuals to provide a range of finance and mortgage broking services
covering commercial finance.
The Diploma of Finance and Mortgage Broking Management FNS50311 is
recognised by the FBAA, MFAA and NTIS.
This qualification is designed to reflect the role of employees working in
finance and mortgage broking, including those who are independent and
work through an aggregator, or who need to manage a workplace team.
In addition to undertaking duties as described in the FNS40811
Certificate IV in Finance and Mortgage Broking, they may also perform
duties such as:
recommend loan combinations which meet clients' needs
assess prospective borrowers' eligibility to obtain finance and their
capacity to service debt
operate and build their own independent business
broker complex and/commercial leases and equipment finance,
commercial finance, project finance and finance for property developers
act as licensees.
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group 3
Course content
This Diploma of Finance and Mortgage Broking Management (FNS50311)
course consists of:
Six modules containing 15 units of competency
Multiple choice assessments
Written assessments/case studies.
Some of these units of competency may have been completed via other
FNS04 or FNS10 Training Packages. You will have an opportunity to
apply for national recognition within the final assessments. Please
ensure you check your statement of academic record as different
training providers offered differing electives.
Once your national recognition form and required evidence has been
submitted for assessment, you will be deemed competent in the units
you applied for.
CORE Units of Competency FNSFMK505A Comply with financial services legislation and industry codes of
practice
BSBRSK401A Identify risk and apply risk management processes
FNSFMB401A Prepare loan application on behalf of finance or mortgage broking clients
FNSFMB402A Provide finance and mortgage broking services
FNSFMB403A Present broking options to client
FNSFMB502A Identify and develop complex broking options for client
FNSFMB503A Present broking options to client with complex needs
FNSFMB504A Implement complex loan structures
FNSCUS501A Develop and nurture relationships with clients, other professionals and third party referrers
FNSINC401A Apply principles of professional practice to work in the financial
services industry
ELECTIVE Units of Competency
BSBOHS303B Contribute to OHS hazard identification and risk assessment
FNSFMB501A Settle applications and loan arrangements in the finance and mortgage broking industry
FNSINC402A Develop and maintain in-depth knowledge of products and services used by an organisation or sector
BSBCOM501B Identify and interpret compliance requirements
FNSPRM603A Grow the practice
Completion of Diploma
You need to proceed through the learning material, completing self-
assessment activities when prompted. You will also be instructed to
complete online multi-choice questions throughout the learning guide.
Final written assessments are to be downloaded from the Members' Area
once all modules have been read.
FNS50311 Diploma of Finance and Mortgage Broking Management
4 © AAMC Training Group Learning guide
How to use this learning guide
This learning guide provides you with the information and activities that
will assist you in achieving competency in these units. It has been
developed as a tool to assist students in their independent learning. All
learners will benefit from using this guide as it will provide a focus for
your course of study. By working through and completing this learning
guide students will be compiling a portfolio of documents which can be
used in the workplace.
This learning guide will:
set out the sequence of learning and assessments.
explain the relevance of concepts or case studies.
describe the skills needed to demonstrate competency in this unit.
help you to practise your skills.
direct you to other sources of additional information.
You can develop competency in this unit in a range of ways, including:
reading the material in this guide
reading the material in referenced texts
observing others in the workplace
completing the activities in this guide.
Online multi-choice assessments
As you read through the learning guide, you will be asked to complete
online multi-choice assessments which you can locate in the Members’
Area of AAMC Training Group’s website: www.aamctraining.edu.au.
You will be electronically marked satisfactory in these; you have three
attempts at each assessment if required.
Fin Serv Legislation MCQ 1
Fin Serv Legislation MCQ 2
Loan Applications MCQ 1
Loan Applications MCQ 2
Loan Applications MCQ 3
BSBOHS303B MCQ
Complex Lending MCQ 1
Complex Lending MCQ 2
Complex Lending MCQ 3
BSBRSK401A MCQ
FNSPRM603A MCQ
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group 5
Written assessments
Once you have completed the learning manual and online multi-choice
assessments you are required to complete the following written
assessments/case studies which you will also find in the Members’ Area:
Financial Services Legislation & Compliance Assessment
Loan Application Process Assessment
BSBOHS303B Assessment
Complex Lending Assessment
BSBRSK401A Assessment
FNSPRM603A Assessment
In order for your written assessments to be marked you will be required
to upload each completed assessment with the assessment cover sheet
via the AAMC Training portal. Your written assessment must be
uploaded in an electronic format i.e. Word, Excel, PDF or Scan.
Once your assessment has been uploaded it will be pending review with
your nominated course assessor. Once you have been marked as
satisfactory you will receive an email. If you are marked as not yet
satisfactory you will be asked to provide additional information or re visit
the assessment and then re upload your amended case study or written
tasks.
Student policies
Recognition of prior learning (RPL)
AAMC Training offers Recognition of Prior Learning (RPL) for all
qualifications/ competency units. RPL is an assessment only pathway
acknowledging the prior learning and current competency of an
individual. To find out more about our RPL policy and process please
view our website.
National recognition
AAMC Training recognises the qualification and certificates issued by
other RTOs. If you have already completed all or part of a qualification/
course and have received a certificate from another training provider
you can provide us with a copy of that certificate and we will give you
direct exemptions from your course with AAMC Training.
Please note: the units of competency on your certificate must be the
same as the units of competency within the course you wish to be
‘nationally recognised’. To find out more about our National Recognition
policy and process please view our website.
FNS50311 Diploma of Finance and Mortgage Broking Management
6 © AAMC Training Group Learning guide
Appeals
AAMC Training acknowledges that learners have the right to appeal an
assessment decision where they have valid ground to do so. To find out
more about our policy and procedures for lodging an appeal please view
our website.
What resources will you need?
You will be directed from time to time to source information from web sites.
These references will be contained in the session information in the guide.
It is recommended that you purchase a lever arch file and clear plastic
sheets so that you may incorporate any materials that you collect from
the internet.
Trainers/Assessors
AAMC Training has the highest quality industry experienced trainers
coupled with sound quality experienced management team that
understands the needs of industry and clients and their desire for
business success.
All AAMC Training trainers and assessors are qualified industry
professionals. Contact your trainer/facilitator if you encounter difficulties
with your study. Your trainer/facilitator will provide contact details at the
commencement of the course.
Regardless of your preferred delivery choice qualified trainers will always
be contactable for tutoring and assistance both via email and telephone.
Plus, if you undertake this course via face to face with AAMC Training
and there are any areas you still do not understand you are welcome to
return for free to the next available class.
Trainer/Facilitator contact details
Please fill in the following details when you are allocated a
Trainer/Facilitator:
Name
Phone number
Fax number
Work email
Home email
Contact times
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group 7
Need assistance with your assessments?
Please contact:
Barry Doherty
Senior Assessor
AAMC Training Group Pty Ltd
Head office:
Unit 5/17 Foley Street
BALCATTA WA 6021
Contact numbers:
Office: +61 8 9344 4088
Fax: +61 8 9344 4188
Email: [email protected]
To assist us in continuous improvement of our training programs, we
would appreciate if you would complete and return the course evaluation
sheet provided at the rear of the learning guide once you have finished
this course.
FNS50311 Diploma of Finance and Mortgage Broking Management
8 © AAMC Training Group Learning guide
There may be editor’s hints
and tips in the margins
throughout the document...
Learning tools
As you work through the learning guide you will notice various symbols
in the margins. The key is as follows:
Activity
Unit of competency outcome
Website link/source
Case study
Important information
Suggested reading
Discuss this
Please note
Editor’s notes
You may also encounter a number of activities in the learning guide. As
you progress through the learning guide, you may encounter a number
of activities. Some activities are suited to classroom or group activities;
others require external research by the student.
These learning activities are simply one way of developing knowledge
and skills, preparing you for assessment but answers are not
required to be submitted as part of the assessment process. Each
activity has a model answer located at the rear of the learning guide. A
typical activity will look something like this:
Activity 1 – Contracts
What is a contract and what are its components?
Check the model answers section
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group 9
Elements of competency
The FNS10 units of competency all refer to relevant government regulatory requirements,
legislation, Australian Standards and industry and enterprise codes of practice that must be
adhered to in day-to-day operations.
National recognition may be granted for some of the following elements of competency.
BSBCOM501B Identify and interpret compliance requirements
This unit describes the performance outcomes, skills and knowledge required to identify and
interpret the range of internal and external compliance requirements and obligations that must
be fulfilled by an organisation. A range of legislation, rules, regulations and codes of practice
may apply to this unit at the time of endorsement, depending on job roles and jurisdictions.
Element Performance criteria
1. Clarify the scope of operations
1.1 Identify and review the relevant range of operations and the sphere of business arrangements of the organisation
1.2 Conduct an analysis of the operations and business arrangements of the organisation and identify the functions, products and services that may be subject to compliance requirements
1.3 Develop and document work activity plans for determining relevant compliance requirements
1.4 Obtain approval of plans from relevant organisational personnel
2. Identify
compliance requirements
2.1 Conduct a search of information on internal and external compliance
requirements using appropriate search resources , including relevant Australian and international standards
2.2 Ensure the search of compliance requirements scans across all relevant jurisdictions of laws, regulations, and industry and organisational codes and standards and identify pertinent compliance requirements
2.3 Progressively review information collected in terms of its relevance to the organisation's operations, services and products
2.4 Organise and store gathered information on relevant compliance requirements in an appropriate format for further analysis
3. Interpret, analyse and prioritise identified compliance requirements
3.1 Review and interpret collected information in terms of its relevance to the organisation's functions, services and products
3.2 Discuss and clarify with relevant internal or external personnel ambiguities, uncertainties and problems experienced in interpreting identified compliance information
3.3 Identify, analyse and prioritise relevant compliance requirements in terms of
critical implications for the organisation and risks and consequence of possible breaches
3.4 Group pertinent compliance requirements into those that are critical and central to the organisation's operations, those that are important in some circumstances but are not central to the organisation's operations, and those that are pertinent but are incidental to the organisation's operations
4. Document compliance requirements
4.1 Organise and document outcomes of the identification and interpretation activities
4.2 Prepare and communicate reports of relevant compliance requirements and assessment of implications to relevant personnel performing specific compliance management functions
FNS50311 Diploma of Finance and Mortgage Broking Management
10 © AAMC Training Group Learning guide
BSBRSK401A Identify risk and apply risk management processes
This unit describes the performance outcomes, skills and knowledge required to identify risks
and to apply established risk management processes to a subset of an organisation or project's
operations that are within the person's own work responsibilities and area of operation. No
licensing, legislative, regulatory or certification requirements apply to this unit at the time of
endorsement.
Element Performance criteria
1. Identify risks
1.1 Identify the context for risk management 1.2 Identify risks using tools, ensuring all reasonable steps have been taken to
identify all risks 1.3 Document identified risks in accordance with relevant policies, procedures
and legislation
2. Analyse and evaluate risks
2.1 Analyse and document risks in consultation with relevant stakeholders 2.2 Undertake risk categorisation and determine level of risk 2.3 Document analysis processes and outcomes
3. Treat risks
3.1 Determine appropriate control measures for risks and assess for strengths and weaknesses
3.2 Identify control measures for all risks 3.3 Refer risks relevant to whole of organisation or having an impact beyond
own work responsibilities and area of operation to others as per established
policies and procedures 3.4 Choose and implement control measures for own area of operation and/or
responsibilities 3.5 Prepare and implement treatment plans
4. Monitor and review effectiveness of risk treatment/s
4.1 Regularly review implemented treatment/s against measures of success 4.2 Use review results to improve the treatment of risks 4.3 Provide assistance to auditing risk in own area of operation 4.4 Monitor and review management of risk in own area of operation
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group 11
FNSFMB401A Prepare loan application on behalf of finance or
mortgage broking clients
This unit describes the performance outcomes, skills and knowledge required to prepare a
client loan application to a relevant lender and present and process the loan using appropriate
channels. Assistance with loan settlement may also apply. This unit may apply to job roles
subject to licensing, legislative, regulatory or certification requirements so Commonwealth,
State or Territory requirements should be confirmed with the relevant body.
Element Performance criteria
1. Compile necessary information
1.1 Appropriate and relevant lender forms are collected, completed, and relevant signatures gathered in an appropriate format
1.2 Information required to support loan application is sourced in accordance with the Consumer Credit Code, compliance requirements and security policies
2. Prepare loan documentation
2.1 Documentation is prepared that accurately reflects the client's financial situation, personal information and complies with lender requirements and guidelines
2.2 Basic requirements of loan, including amount, term and interest rate are confirmed and all documentation checked for accuracy and readability
2.3 All relevant processes for proper execution of documentation are
completed efficiently and within an appropriate timeframe
3. Present documentation for assessment
3.1 Documentation is submitted to appropriate lender or approving officer in appropriate manner to protect client confidentiality
3.2 Application offer or non-offer of loan is determined and client is notified in timely manner
3.3 Clear, comprehensive and accurate information is given to client as to their rights, obligations, responsibilities and manner in which to proceed if loan application is non-offer
4. Maintain communication with relevant parties
4.1 Clear and open communication is maintained throughout the loan preparation and presentation process with lender and client
4.2 Additional information requested by lender to support loan application is gathered in an efficient and timely manner
4.3 Clear, comprehensive and accurate information is given to client as to the
manner in which to proceed immediately following loan approval
FNS50311 Diploma of Finance and Mortgage Broking Management
12 © AAMC Training Group Learning guide
FNSFMB402A Provide finance and mortgage broking services
This unit describes the performance outcomes, skills and knowledge required to determine a
client's finance broking requirements and explain capabilities, legal and compliance related
issues so the client is aware of their rights. This unit may apply to job roles subject to
licensing, legislative, regulatory or certification requirements so Commonwealth, State or
Territory requirements should be confirmed with the relevant body.
Element Performance criteria
1. Educate client and build rapport
1.1 The finance and mortgage broking process is explained to the client in a clear and unambiguous way with the background, credentials and role of the broker clarified to build rapport
1.2 The services, values and capacity of the organisation are presented to the client and the client's understanding of the fees and charges are confirmed
1.3 Procedures for complaints handling and resolution are identified and confirmed with the client
2. Determine client's existing financial
situation
2.1 Client is asked to disclose relevant facts to begin determining their personal and financial situation and the current income, expenditure and liabilities
of the client are established 2.2 Current investment and assets position of the client are determined and an
initial analysis of client's financial position undertaken based on the extent of client disclosure
3. Determine client goals and priorities with respect to finance broking
3.1 Client is asked to clarify their investment goals and expectations 3.2 Risk issues and tolerance are explored comprehensively with client and
client concerns, if any, are identified and responded to promptly and appropriately
3.3 Client priorities are established and confirmed 3.4 Specialist advice is sought where necessary or client is referred to
appropriate sources where required advice or services cannot be provided
4. Prepare necessary documentation follow-up
4.1 All relevant client facts, information, financial and personal histories are documented, checked and managed confidentially in accordance with organisation policy and guidelines and relevant legislation and industry codes of practice
4.2 Client records are created or updated where necessary in a clear and concise format and securely filed in a format and location readily accessible to other appropriate advisers
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group 13
FNSFMB403A Present broking options to client
This unit describes the performance outcomes, skills and knowledge required to collect
information, conduct relevant research and develop and present broking options to a client.
This unit may apply to job roles subject to licensing, legislative, regulatory or certification
requirements so Commonwealth, State or Territory requirements should be confirmed with the
relevant body.
Element Performance criteria
1. Gather relevant information
1.1 Lender products, services and features are reviewed and additional industry information researched, where necessary, for lender products and services that are relevant, could impact or provide additional benefits to clients
1.2 Clients needs are acknowledged and compared to most appropriate lender
product and service
2. Prepare appropriate options
2.1 Relevant lender information, product information, and support material are gathered and developed in a clear and concise format for the client
2.2 All information is organised clearly and concisely in a manner appropriate to
the client's needs and level of understanding
3. Present options to client
3.1 Recommended product and its features is explained to client in a clear and unambiguous way with the impact of recommendations clearly and comprehensively discussed with the client including strengths, weaknesses, benefits and risks
3.2 Fees, charges and commissions are clearly explained to client 3.3 Strategic and commercial relationship of the representative and their
organisation to recommended products is communicated to the client
4. Negotiate effectively
4.1 Client concerns, if any, are identified and responded to appropriately and
alternatives to recommendations presented when requested 4.2 Client is encouraged to make informed choices using the relevant
information and documentation presented
5. Obtain agreement to
proceed
5.1 Agreement to proceed is obtained from client once concerns and issues are
worked through and implementation actions discussed, clarified and agreed between client and broker
5.2 Client records are created or updated appropriately and in a clear and concise format in anticipation for preparation of the loan application
FNS50311 Diploma of Finance and Mortgage Broking Management
14 © AAMC Training Group Learning guide
FNSFBRK502A Identify and develop complex broking options for client
This unit describes the functions involved in determining and preparing solutions for clients
who need finance broking strategies which are more complex or require a high level of
knowledge of the mortgage and finance broking industry as well as the broader finance
industry.
Element Performance criteria
1. Identify complex broking needs of client
1.1 Special or complex features of a client’s situation and objectives are discussed, reviewed and clarified
1.2 Risk issues and tolerance are explored comprehensively and ethically with client including unusual risks or requirements
1.3 Interdependencies and implications are considered and discussed with client 1.4 Risks to the client and/or organisation are assessed for their impact according
to company policy, guidelines and relevant legislation. 1.5 Further questioning and information gathering is engaged as required
2. Research and consider complex broking solutions based on client needs
2.1 Current client situation is analysed to determine opportunities and constraints 2.2 Research into loan structures or options is conducted including those which
are new or non-standard, if required 2.3 Complex financial issues are considered in terms of economic, legislation,
taxation, legal, insurance and other implications 2.4 Possible loan structures or options are analysed, modelled, prioritised and
measured against risk and inappropriate options are rejected including relevant fees and charges
2.5 Preliminary option/s are checked to ensure compliance with relevant acts, legislation, regulatory and ethical guidelines and are assessed for their ability to successfully achieve objectives
3. Select and gather appropriate option/s and information for client review
3.1 Broking options for review with client are selected and explanatory material developed or obtained
3.2 If appropriate, consequences and other issues relating to the broking strategy are considered including referrals to accountant, financial adviser, or lawyer where required
3.3 Recommendations on risk management strategies are developed and incorporated into materials for client
3.4 Description of anticipated fees and charges are incorporated into materials for client
3.5 Information on complaints resolution procedures (internal and external) is included in the client information
3.6 Broking recommendations and loan structures that will be presented to client
are documented according to organisation guidelines and procedures
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group 15
FNSFMB503A Present broking options to client with complex needs
This unit describes the performance outcomes, skills and knowledge required to create rapport
with clients with complex or special needs and present complex information to them,
negotiating effectively and completing and maintaining required documentation, including a
plan. This unit may apply to job roles subject to licensing, legislative, regulatory or certification
requirements so Commonwealth, State or Territory requirements should be confirmed with the
relevant body.
Element Performance criteria
1. Develop rapport with client
1.1 Client’s needs and objectives are addressed in a manner consistent with their level of financial understanding and which directly applies to the objectives and requirements they have disclosed
1.2 High level active listening skills are demonstrated in dealings with client, including those with special needs
1.3 Services explained to client are given orally and in writing in a clear and unambiguous way, avoiding jargon and in a language appropriate to the receiver
1.4 Strategies and recommendations are introduced to client in a clear and unambiguous way
1.5 Disclosure of capacity to client is consistent with industry requirements and
organisation guidelines
2. Present broking options to the client
2.1 Client is guided through broking options and impact of each option is clearly and comprehensively discussed with client including advantages, disadvantages, risks and financial implications, taking into account various
assumptions or possibilities 2.2 Fees, charges and commissions are clearly explained to the client and copies of
the research and other documentation provided 2.3 Any commercial relationship of the representative and their organisation to
products and or services mentioned in the plan are disclosed 2.4 Adviser identifies and addresses issues that in their professional judgement
may require further consideration or consultation with other financial services professionals
2.5 Confirmation is sought from client that they understand the broking options presented
3. Negotiate effectively
3.1 Client concerns, if any, are identified and responded to appropriately with alternatives to recommendations presented when requested
3.2 Limits imposed by regulatory requirements or organisation guidelines are observed
3.3 Restraint and control of feelings are exercised when dealing with conflict
situations involving clients 3.4 Communication channels are maintained when dealing with complaints and
following complaint handling procedures 3.5 Agreement to proceed is obtained from the client
4. Complete and maintain necessary documentation
4.1 Client interaction is recorded in accordance with the current industry documentation requirements
4.2 Confirmation including relevant documentation and contract variation is provided to the client
4.3 Instructing or purchasing documents where required are signed by the client 4.4 Post broking service to be provided is clearly defined, and is communicated to
the client 4.5 Client records are created or updated
FNS50311 Diploma of Finance and Mortgage Broking Management
16 © AAMC Training Group Learning guide
FNSFMB504A Implement complex loan structures
This unit describes the performance outcomes, skills and knowledge required to establish
actions, timings and priorities needed to implement complex loans and supervise the
implementation process. This unit may apply to job roles subject to licensing, legislative,
regulatory or certification requirements so Commonwealth, State or Territory requirements
should be confirmed with the relevant body.
Element Performance criteria
1. Organise implementation actions
1.1 Special or complex features of the client's situation are reviewed for implementation implications including high asset, income or expenditure requirements, complex taxation, the complex nature of the securities to be taken, forms of security to be taken for complex transactions and other legal or complex issues
1.2 Implementation actions are prioritised, timing for each action is planned, and activities are confirmed to be consistent with client needs and specifications
1.3 Implementation actions including timing and priority are carried out to maximum advantage for client
1.4 Implementation actions required by the client are clearly explained, written agreement to actions is obtained, and implementation records are established
2. Establish appropriate procedures for implementation
2.1 Personnel to implement each action for the loan structure are identified and briefed and internal and external documentation requirements completed
2.2 Implementation actions that depend on, or involve actions by, other professional such as accountants and lawyers are coordinated with these professionals
2.3 Monitoring procedures are established for critical implementation timing and priorities
3. Undertake and/or supervise implementation
3.1 Client is briefed on actions to be undertaken and assistance is provided where needed
3.2 Instructions are issued to internal and external personnel as per loan structure 3.3 Consultation and monitoring is maintained with other professionals where joint
implementation action is required and checks and follow-ups are made on lodgement of documentation to ensure plan timings are met
3.4 Fees and charges are obtained and processed according to organisation and
legislative requirements 3.5 Client is debriefed and any concerns are addressed
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group 17
FNSCUS501A Develop and nurture relationships with clients, other
professionals and third party referrers
This unit describes the performance outcomes, skills and knowledge required to communicate
and network with a wide range of people internal and external to the organisation to increase
efficiency, build continuing relationships and improve sales. No licensing, legislative, regulatory
or certification requirements apply to this unit at the time of endorsement.
Element Performance criteria
1. Develop professional business relationships
1.1 All dealings with the client, professionals, and other third parties are conducted professionally in accordance with the organisation's policies and procedures and legislative, regulatory and professional codes of practice
1.2 The organisation's social, business and ethical standards are used to develop and maintain positive relationships
1.3 Dealings with colleagues, clients and other parties is carried out through competent performance and with respect to confidentiality
1.4 Interpersonal styles and methods are adjusted to the needs and situation of other parties
2. Build and maintain business networks and relationships
2.1 Business and professional networks and other relationships are developed and maintained to benefit the organisation
2.2 Business and professional networks are used to identify and cultivate relationships in order to promote and market the organisation
2.3 Other professionals and third parties are cooperated with to expand and enhance the reputation of the organisation and to identify new and improved business practices
3. Nurture relationships and build on referral business for the long term
3.1 Referral business is followed-up through appropriate communication channels to find and secure new business relationships
3.2 Referral needs are identified quickly and information provided about organisation's relevant products and services
3.3 An interview with referral business is secured where needs can be met, or other sources of information are identified that may assist the client
FNS50311 Diploma of Finance and Mortgage Broking Management
18 © AAMC Training Group Learning guide
FNSINC401A Apply principles of professional practice to work in the
financial services industry
This unit describes the performance outcomes, skills and knowledge required to identify industry
professional approaches to procedures, guidelines, policies and standards, including ethical
requirements and model and meet expectations of these in all aspects of work. This unit has
application to a variety of financial services sectors and is applicable to individuals working within
enterprises and job roles subject to licensing, legislative, regulatory or certification requirements
so the varying Commonwealth, State or Territory requirements should be confirmed with the
relevant body.
Element Performance criteria
1. Identify the scope, sectors and responsibilities of the industry
1.1 External forces impacting on the financial services industry are identified and considered in carrying out activities
1.2 The main sectors of the financial services industry and the interrelationship between sectors are identified and considered in carrying out activities
1.3 The roles and responsibilities of other participants in the financial services
industry are identified and considered in carrying out activities
2. Identify and apply financial services industry guidelines,
procedures and legislation
2.1 Information on relevant legislation, regulations and codes of practice is collected, analysed and effectively applied to the job role
2.2 Own work practice is clarified and regularly refined in light of relevant
legislation, regulations and codes of practice and organisation policies, guidelines and procedures
2.3 Relevant codes of practice are used to guide an ethical approach to workplace practice and decisions
3. Identify sustainability issues for the financial services industry
3.1 Information on sustainability policies, strategies and impacts on industry is obtained and from a range of sources and analysed
3.2 Environmental sustainability is identified as an integral part of business planning and promoted as a business opportunity
3.3 Work planning incorporates and supports triple bottom line principles
4. Manage information 4.1 Relevant documents and reports that could impact on work effectiveness and compliance are read and understood, and any implications discussed with appropriate persons
4.2 Documents, reports, data and numerical calculations are analysed, checked, evaluated and organised to meet customer and organisation requirements
4.3 Information is presented in a format appropriate for the audience
5. Participate in and facilitate work team activities
5.1 Provide feedback to team members to encourage, value and reward individual and team efforts and contributions
5.2 Actively encourage team members to participate in and take responsibility for team activities and communication processes
5.3 Give the team support to identify and resolve problems which impede its performance
5.4 Ensure own contribution to work team serves as a role model for others and enhances the organisation's image within the work group the organisation and with clients/customers
6. Plan work to be completed taking into consideration time,
resources and other constraints
6.1 Tasks to be done and relevant conditions are determined and work planned either for working autonomously or with others in a team environment
6.2 Work is planned for a given period managing resources, time and priorities
6.3 Contributions are made to organisation planning process as required to achieve service improvement
6.4 Changes in technology and work organisation are adapted to in a timely manner
7. Develop and maintain
personal competency
7.1 Professional development needs and goals are identified and reviewed on a
regular basis 7.2 Competency, authorisation and licensing requirements are clarified and
complied with 7.3 Professional development opportunities that reflect needs and goals are
sought and completed in an agreed upon timeframe
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group 19
BSBOHS303B Contribute to OHS hazard identification and risk
assessment
This unit describes the performance outcomes, skills and knowledge required to contribute to
occupational health and safety (OHS) hazard identification and risk assessment to promote the
maintenance of OHS in the workplace. It includes determining relevant legislation and
contributing to any actions to ensure compliance with OHS legislation, codes and standards. No
licensing, legislative, regulatory or certification requirements apply to this unit at the time of
endorsement.
Element Performance criteria
1. Contribute to
workplace hazard identification
1.1 Contribute to the selection of hazard identification tools, techniques,
processes and methods suitable for the workplace 1.2 Access hazard identification tools, techniques processes and methods to
identify hazards in the workplace 1.3 Recognise hazards in the workplace, report these hazards to designated
personnel and record them in accordance with workplace procedures 1.4 Provide information and assistance to persons conducting workplace
inspections or testing
2. Gather information about workplace hazards
2.1 Research, collect and record information about OHS hazards and their associated risks
2.2 Seek additional information, expertise or specialist advice from within or external to the workplace when limit of own skills and knowledge is reached
2.3 Conduct a workplace inspection to collect further information about OHS hazards and associated risks if required
2.4 Contribute to the support of OHS practitioners and employees in accessing workplace sources of information and data regarding hazard identification
2.5 Contribute to the support of OHS practitioners and employees accessing
external sources of information and data related to hazard identification, where required
3. Contribute to OHS risk assessment
3.1 Use appropriate risk assessment tools to contribute to risk assessment 3.2 Identify, categorise and assess risk factors as a contribution to overall risk
assessment 3.3 Seek additional information, expertise, or specialist advice to investigate the
likelihood and consequence of identified risks 3.4 Document outcomes of the risk assessment process in a risk register
FNS50311 Diploma of Finance and Mortgage Broking Management
20 © AAMC Training Group Learning guide
FNSFMB501A Settle application and loan arrangements in the
finance/mortgage broking industry
This unit describes the performance outcomes, skills and knowledge required to settle
applications and loan arrangements for debt finance and undertaking the final arrangements to
secure and complete the lending transaction for a client applying for a mortgage or related
finance. This unit may apply to job roles subject to licensing, legislative, regulatory or
certification requirements so Commonwealth, State or Territory requirements should be
confirmed with the relevant body.
Element Performance criteria
1. Prepare for
settlement
1.1 All pre-settlement conditions of finance approval are confirmed with
lender providing funds and the various parties to settlement are communicated with to confirm that documentation and any other settlement issues are in order
1.2 In the case of a second mortgage advance, confirmation is obtained that prior mortgagee has consented to the subsequent mortgage
1.3 Documents are checked to ensure they are correctly executed, witnessed and dated before sending to approving personnel
2. Register securities 2.1 Loan approval is checked for conditions relating to the taking of security 2.2 Party acting for the lender is instructed to liaise with all parties to the
settlement and attend settlement 2.3 Securities are registered and stamped in accordance with lender's
procedures and relevant legislation with all security actions taken confirmed as correct and complete
3. Arrange for the disbursement of funds
3.1 Drawdown of the funds is arranged by the lender or solicitor acting for the lender
3.2 Funds are disbursed in accordance with the requirements of loan approval and instructions received from the client
3.3 Relevant client correspondence is activated to advise client of disbursement of funds, date of settlement, manner of disbursement and other relevant details
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group 21
FNSINC402A Develop and maintain in-depth knowledge of products
and services used by an organisation or sector
This unit describes the performance outcomes, skills and knowledge required to develop and
maintain an in-depth knowledge of the financial products and services provided by an
organisation, or those an organisation uses, and how they may be applied to customer needs.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time
of endorsement.
Element Performance criteria
1. Identify the products and services the organisation uses
1.1 Products and services used by an organisation or sector are identified and the purpose of each determined
1.2 The characteristics of products and services are identified and their strengths, weaknesses, terms, and conditions understood so they can be clearly communicated to customers where applicable
1.3 The organisation's promotional strategy for products and services are accessed and applied in business activities
2. Identify compliance implications of product
2.1 Compliance implications are established and documented 2.2 Customer is provided with all necessary information and documentation as
per compliance requirements
3. Determine the appropriate users for products and services
3.1 The function of each product and service and the customer needs it satisfies are identified and documented and the customer characteristics that best suit each product determined
3.2 The products and services used by the organisation or sector are compared with the products of competitors as a basis for selecting the most effective approach to matching products to customer needs
3.3 Approaches to selling the products and services in a competitive marketplace are evaluated and effective approaches to meeting customer needs determined
4. Maintain product knowledge
4.1 Relevant products and services are reviewed regularly and any changes to terms and conditions identified and applied in daily work
4.2 Systems for keeping up with changes and maintaining up-to-date knowledge about relevant products and services are put in place and used
4.3 Emerging trends affecting the financial industry are continuously reviewed
and applied to product and service knowledge
FNS50311 Diploma of Finance and Mortgage Broking Management
22 © AAMC Training Group Learning guide
FNSFMK505A Comply with financial services legislation and industry
codes of practice
Element Performance criteria
1. Identify and apply organisational requirements of legal
principles and regulatory obligations
1.1. Source documents for legislation, regulations and policies relevant to the provision of financial products and services are sourced and accessed
1.2. Key legal principles and organisational implications relating to the provision
of financial products and services are interpreted and analysed 1.3. The organisational requirements of these documents and their impact on
work practices are identified in terms of procedural requirements 1.4. Procedural requirements relating to operational aspects of laws and
regulations and codes of practice are executed in line with organisational policy
1.5. Role authorities and restrictions as identified in position profiles are complied with
1.6. Internal monitoring/audit program is implemented according to organisational and role requirements
1.7. Mechanism is established to ensure currency of regulatory literature is maintained
2. Identify changes and implications of laws, regulations, rules and circulars
2.1 Changed legislation, regulations and policies are identified and accessed in a timely manner and communicated in accordance with organisational policy
2.2. Operational procedures are reviewed to accurately reflect changes to regulation and legislation
2.3. Implications for products and services are identified and changes implemented in accordance with client, legislative and organisational requirements
3. Comply with any
relevant industry or professional codes
3.1. Relevant industry codes of practice are sourced, accessed and applied to
own work in accordance with organisational requirements 3.2. Key principles and responsibilities are interpreted in accordance with industry
codes of practice with own interpretation and application of industry codes of practice confirmed and clarified as required with relevant persons
3.3. Impact of codes of practice on work practices is understood and implemented
4. Maintain statutory records
4.1. Relevant records are maintained and copies of any relevant agreements kept on file
4.2. Evidence of current authorisation, training and relevant licences are maintained in accordance with organisational, legal and regulatory requirements
FNS50311 Diploma of Finance and Mortgage Broking Management
Learning guide © AAMC Training Group 23
FNSPRM603A Grow the practice
This unit describes the performance outcomes, skills and knowledge required to promote and
grow a financial practice. It requires the application of marketing skills and the use of market
intelligence to develop and implement practice promotion and growth plans. This unit may
apply to job roles subject to licensing, legislative, regulatory or certification requirements so
Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Element Performance criteria
1. Develop marketing plan for the practice
1.1 The practice vision statement objectives are developed or reviewed 1.2 Target markets are identified or refined based on research and experience 1.3 Market research data are obtained and a competitor analysis developed 1.4 The practice market position is developed or reviewed based on the research
findings and analysis
2. Develop practice promotion plans
2.1 Practice brand is developed and the benefits of the practice, practice products and services are identified
2.2 Appropriate promotion tools are selected or developed as required
3. Develop practice growth plans
3.1 Plans to add new clients and increase yield per existing client are developed 3.2 Proposed plans are ranked according to agreed criteria and an action plan to
implement the top ranked plans is developed and agreed 3.3 Practice work practices are reviewed to ensure they support growth plans
4. Implement and monitor plan
4.1 Implementation plan is developed in consultation with all relevant stakeholders
4.2 Indicators of success of the plan are agreed and implementation is monitored against agreed indicators
4.3 Implementation is adjusted as required to meet objectives
FNS50311 Diploma of Finance and Mortgage Broking Management
24 © AAMC Training Group Learning guide