Final Multiple Choice - Assignment Example

In order to manage you own work practices you may need to be aware of and comply with(select all that apply) a. Industry codes b. Lender requirements c. Licensee requirements d. Business operating manuals e. Internal policies and procedures f. Aggregator requirements Brokers should be continually training and up skilling as(select all that apply) a. They need to remain competitive b. Products change c. ASIC requires it d. Legislation changes After the loan has settled the broker should a. Amend process and checklist if relevant b. Review what could have been done better c. Conduct a debrief d. Check if there are any concerns e. All of the above Special or complex features of a client situation that may need to be reviewed include a. Legal matters b. Complex nature of securities c. Forms of securities d. Complex taxation e. All of the above When there are multiple professionals involved in a transaction it is crucial to have monitoring, tracking and reporting procedures in place to ensure actions are being taken within required timeframes a. True b. False The best way to personally ensure a requested loan structure is implemented correctly is to a. Wait until settlement day then check if everything has been done b. Hope that people do what they are supposed to do c. Ask for evidence of lodgement and then completion To ensure successful implementation of the broking option it is important that you get the written agreement of the (?) to the actions that you are proposing  a. Client b. Spouse c. Accountant d. Solicitor It is appropriate to instruct third parties such as lenders and solicitors as long as you have received verbal confirmation from the client a. True b. False Complaints could be viewed as constructive and help improve processes that might be a weakness for the company a. True b. False Brokers should disclose their capacity to assist the client and their compliance with industry requirements, codes of practice and (?) a. Volume requirements b. Rules c. Timeframes d. Legislation If you are lending to a couple and one person has a concern about the broking option and the other doesn't it is important to treat each party equally and address their individual concerns a. True b. False If you come up with an option that the client is unfamiliar with it may help to  a. Select the next best option that the client is more familiar with b. Provide charts and information to help explain the option c. Have the client go and meet with the lender directly d. All of the above where a potential lending option exceeds the risk tolerance of the client it may be appropriate to  a. Discard the lending option b. Encourage the client to alter their risk tolerance c. Proceed anyway d. None of the above When a risk to the client is identified it should then be a. Delegated to someone else b. Analysed as to its potential impact c. Put aside until after the loan has been settled d. Ignored e. None of the above Complex lending can often involve matters that the broker will have to refer to other professionals rather than trying to address it themselves a. True b. False Once preliminary loan options have been identified for the client they need to be checked to ensure compliance a. Regulatory guidelines b. Ethical guidelines c. Lender requirements d. Relevant acts e. All of the above It is important that the client's full name matches with the names listed on which documents a. Contract to purchase b. Business card c. Identification d. A and C e. B and C Under the NCC all borrowers must receive individual copies of all documents sent out by the lender unless they have signed a ( ) Form requesting that only one person receive one copy of the documents on behalf of all the borrowers a. Identification b. Nomination c. Privacy d. Disbursement e. None of the above A statutory declaration form witnessed by a justice of the peace is required when a. The client address needs to be confirmed b. The deposit is gifted c. Where names are different d. B and C e. A and B Information that a lender may consider when assessing the character of a borrower includes the following a. Asset position b. Employment history c. Credit history d. All of the above e. None of the above If a broker is intending to make use of client information for their own purposes, such as marketing, then they should not obtain their own privacy consent form a. True b. False Which of the following would not help when explaining strategies and recommendations to your client a. Using everyday language b. Encouraging client feedback c. Speaking quickly to keep the meeting time down d. Using graphs, diagrams or charts Documents that could be kept to record details of interactions with clients include the following a. Signed records of approval to proceed b. Notes from discussions on phone or verbally c. Signed understandings d. Details of materials provided to the client e. All of the above The key facts sheet should not include the following items a. Commission or brokerage b. Establishment fees c. Ongoing fees d. Repayment per month e. None of the above Details of all fees and costs should be provided to the customer in ( ) a. Triplicate b. Case of a legal claim c. Writing d. The brokers office The decision to proceed with a broking option will be a better one when the client is actively engaged in discussing their situation and how to move forward a. True b. False Customers will have certain expectations of a broking business which is a. Providing services that have met their needs b. Submitting information in an application that they know is incorrect c. Attending an appointment at any hour of the day d. Obtaining an approval no matter what their income level is For mortgage brokers quality very much focuses on a. Reducing the amount of phone contract b. Minimizing re-work and providing reliable service c. Providing fast service d. Providing the least amount of paperwork The four steps of the continuous improvement cycle are; a. Plan, act, implement and review b. Plan, review, monitor and do c. Act, do, plan and review d. Plan, do ,check and act One of the biggest barriers to innovation for small business is the  a. Cash flow required to be set aside to innovate b. Lack of co-ordination within the business c. Lack of knowledge about technology d. Time required to perfect the innovation With the multitude of issues that can arise during a property transaction, finance brokers must ensure they only provide advice in relation to a. Credit b. Entity structuring c. Life insurance d. Tax  e. None of above Although an application for credit may satisfy a credit provider's own policies for affordability, it does not necessarily mean that it meets the responsible lending standard in the legislation a. True b. False The purpose of an external dispute resolution scheme is to a. Handle all disputes between brokers and clients b. Handle complaints about members that were not resolved directly c. Handle complaints about any operators in financial services d. Settle disputes without the licensee having to be involved e. None of the above The two main industry associations for those working in finance and mortgage broking are; a. ASIC and APRA b. NRL and AFL c. FMBA and NCCP d. MFAA and FBAA Evidence of current authorisations, training and relevant licences must be maintained in accordance with legal and regulatory requirements a. True b. False To comply with the NCCP, Credit assistance providers must make a decision before providing credit assistance that they have a product that a. Is 'not unsuitable' for their client's requirements and objectives b. 'Suits' their clients need to obtain credit c. 'Meets' their client's financial objective d. Will 'ensure' their client can buy property e. All of the above Due to the complex and large number of laws and regulations that apply within the financial services industry, ignorance is accepted as a valid excuse a. True b. False Where there are changes to laws, regulation which impact on pros and policy these should be communicated/ broadcasted to all relevant personnel a. True b. False Read More