FNS50215 Diploma of ACCOUNTING

FNSFMK505 Comply with financial services regulation and industry codes

of practice

Assessment 2

V1.0 REAA Released January 2019

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Assessment information

You are a financial services compliance officer and you have been asked to comment on a dispute
between a financial service provider and one of its customers.

Instructions to complete this assessment

In order to complete this assessment, you are required to complete the following sections
consecutively. Details and specific instructions are provided within each section and on the
form/templates provided.

Supporting documents
To find the relevant supporting documents, please refer to the Supporting Documents folder,
located within the FNSFMK505 Comply with financial services regulation and industry codes of practice
section of your course. (

Section 1 – Review the Case Study – Mrs X versus FSP

Requirements

Download and review the case study Mrs X versus FSP, located in the Assessment 2 Supporting
Documents folder, particularly having regard to:

→ Relevant legal requirements or rights provided by law in relation to the subject matter of the
complaint;

→ Applicable codes of practice;

→ Good practice in the financial services industry; and

→ Fairness in all the circumstances.

V1.0 REAA Released January 2019

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Section 2 – Analyse Complaint

Requirements
Read Part 1 – Consumer Complaint and enter your responses below with regard to:

In your opinion does the Complainant have any grounds for lodging a complaint against the FSP?
Support your opinion with reference to laws, codes of practice, etc.
There are certain grounds the complainant has to lodge the claim such as
-Financial service provider did not provide the complainant relevant disclosure information.
-The FSP was required to separate funds and property held on clients behalf from their own
and in addition provide monthly statements / financial records as per law.

What evidence you would require the complainant to provide to support her claim?
The evidence required to assist her claim could be as follows:
-All information initially provided to the claimant.
-Financial receipts, statements of loans or transactions and any other receipts.
-A summary of events in chronological order.
-Any email or Letter correspondence with the accused.

V1.0 REAA Released January 2019

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Section 3 – Analyse FSP Response

Requirements
Read Part 2 – FSP Response and enter your responses below with regard to:

In your opinion does the FSP have any grounds for denying the complaint? Support your opinion
with reference to laws, codes of practice, etc.
The FSP has grounds for denying the complaint as the statements and for the case was valid
at the time of offer and the circumstances were unforeseeable with no obvious signs of
deception. There are always risks involved with investing the advice was reasonable and the
client was given SOA and disclosure of risks with recommended investments were outlined.

What evidence you would require the FSP to provide to support their denying of the claim?
The SOA the client received and Evidence that shows fair and reasonable financial advice at
the time of the offer ; such as consulting services, financial records relating to the clients file
other positive buisness results given in the past for the companies track record.

V1.0 REAA Released January 2019

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Section 4 – Prepare a Conclusions Summary

Requirements
Based on the information in the case study and your responses to Sections 2 and 3:
a) How should the evidence provided by both parties be assessed?, and
b) Provide an opinion if a breach of any regulation has occurred, and if so, describe the most
likely next step in the complaint process
a) The evidence should be assessed by someone that meets the specific criteria and
requirements of an assessor.

b)In my opinion, after the case and its relevant documents have been thoroughly assessed
by the assessor if the licensee has had a breach within any of the codes the next step would
be for the licensee must notify ASIC within 10 days of the breach or suspected breach from
the assessor. Depending on the Asics review a negotiation of the financial loss would need
to be discussed.

V1.0 REAA Released January 2019

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