Finance Broking in

Practice
(FBP)

Student
Assessment Booklet
Name..Qian.Li......................................
Date...27/03/2018..............................
Manual Version Number...240118..........

Please note: It is a requirement for students to make their

submissions using this electronic assessment booklet.
FBP: Chapter 4

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Case Study Activity

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Using the scenario provided in the accompanying Course Manual please

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Whilst this will require more work for you I hope you will understand that we are
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Finance Broking in Practice (FBP) Student

Declaration

Student Declaration:

I understand that by completing this form I am bound by the

following declaration.

To the best of my knowledge and belief, no part of this

assignment for the above unit has been copied from any other
student’s work or from any other source except where due
acknowledgment is made in the text, or has been written for
me by another person.

Name: [Qian Li] Date: [27/03/2018]

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Short Answer Question 1

You had recommended a variable interest rate product with an offset
account to your client and they emailed you and said they did not want to
take up the product as it was too expensive. A cheaper product exists but
you believe it doesn’t meet their needs as it does not have the features
they need. Write an email in response (referred to a sales response)
designed to overcome their reluctance. Ensure you sign off with your
name and provide your mobile phone so they can contact you.

Dear customers,

I have received your email about the product you are preferred. However the cheaper
product will not satisfy your needs. I still believe the product with the offset account is
much more suitable for your situation.

There are two products quite popular in the market, one is the variable rate with offset
account and package fee $395 annually, and the other is the special two years fixed rate,
which has lower interest rate than the variable product. In your case, you will have a loan
with limit $500,000 and you said you will have around $200,000 you can put in the
account. As well, you are requesting a lower rate in order to save the money in the
interest repayment. Therefore, I have chosen the variable rate with offset for you, you can
put your $200,000 in the offset account. The offset account is the 100% offset which
means the interest will be calculated by $300,000. Later if you have more money, you can
just simply put it in the offset account. It is very flexible and the interest is calculated by
day, so you can save the interest you have to pay. Even though it has a package, there is no
service fee in the offset account and the interest rate is quite competitive and there is a
discount from the standard rate in the loan term.

On the other hand, the fixed rate is a little bit lower than the variable rate, but there is no
offset account, the interest rate is calculated by $500,000 and the fixed rate is only
validate for two years, after two years the interest rate will be slight higher as it is not in
the package. For the long term of your needs, the variable rate with offset account is
much more your needs. If you have any queries, do not hesitate to contact me on 0433
207 466.

Kind Regards,
Jennifer Li
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Short Answer Question 2

(a) Which software applications would you use to calculate a client’s
financial position?
(b) All brokers are required to pass the So Sweet credit guide to their
clients. Devise an item on an audit program to prove she does it.
(c) So Sweet requires all new brokers to email a summary of their efforts
each week to their mentor. Devise an internal monitoring program to
ensure they do it.
(d) Keeping up with new regulations is vital. Devise a mechanism to
ensure the currency of regulatory literature is distributed in a timely
fashion in accordance with organisational policy.
(e) How would you ensure operational procedure is updated to reflect
changes to regulation and legislation, including the identification of
implications for product and services?
(f) Research and calculate the cost of implementing triple bottom
line principles in an office with no eco policies.
(g) Via email ask if any staff would like to undertake the triple bottom
line implementation process as a business opportunity.

a)
Serviceability Calculators would be used to calculate a client’s financial position.

b)
Providing a checklist to clients, which including all items that brokers are required to pass
to the clients and ask for clients' signature for the checklist after the credit guide has been
received.

c)
Set up a calendar reminder for both the new brokers and their mentor. The calendar will
reminder the new brokers to send the work summary by email every Friday afternoon,
and help their mentor to remember to receive the work summary from the new brokers
and review it as well.

d)
Regulations and codes of practice change over time, it is necessary to maintain a
professional approach by keeping up with such changes and ensuring that mechanisms
are in place that allow for regulatory information to be kept up to date and integrated into
the workplace systems. Style guides are used to in organisations to create rules for the
creation of documents to provide uniformity.

e)
It is necessary to promptly identify whenever legislation or policies change, and for these

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changes to be communicated in an acceptable and effective way where needed, within

the organisation to colleagues, and to clients, so that their impact is understood and
implemented. Legislation, regulations and policies must therefore be sourced and
accessed so that their implications can be interpreted and analysed, and their effect on
workplace practices identified and implemented within the procedural frameworks,
policies and operations of organisation. It may take some highly developed research and
analysis skills to access, interpret and manage complex information like statutory
requirements, or to identify economic legislative factors which affect the organisation.

f)
Profit (Economic performance):
Retention/attraction of skilled workers......($1,000)
Reorganised office space costs......($1,000)
Improved productivity......($500)
Improved customer satisfaction......($500)
Planet(Environmental performance):
Better air quality......($500)
Better water quality......($250)
waste minimization and recycling......($150)
improve occupational environment......($1,200)
People(Social performance):
Better working conditions/warning signs......($150)
provide internal education......($1,200)
awards to units and individuals that have achieved outstanding successes......($2,000)

g)
Dear Fellow Staff Members,

The triple bottom line refers to an extension of the criteria used to measure organisational
success. The triple bottom line takes into account three criteria for assessing
organisational performance: economic, social and environmental.

The financial or economic performance of an organisation is the easiest of the three

criteria to measure accurately. Traditional accounting methods take into account the
inflow and outflow of resources from the business, generally including cash and finances,
assets, liabilities and other easily definable business resources. The economic criteria can
then be used to determine how much an organisation generates in monetary value. It can
also be used to determine the net worth of the business at a given point in time.
The social performance of an organisation is somewhat more difficult to define and
measure. The social criterion of the triple bottom line takes into account the impact that a
business has on people within the business (employees) and people outside of the
business (the community). A business applying the triple bottom line principles will act in
a way that benefits the community and will ensure that people are not being exploited or
endangered by the operation of the business. Social factors that should be considered
include labour utilisation and wages, working conditions and contribution to community
living standards.

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Environmental performance is concerned with a business total impact on the natural

environment. Triple bottom line organisations aim to improve the environment where
feasible, or at the very least, reduce and limit their negative impact on the environment.
Organisations need to look at more than just obvious environmental issues (like pollution)
and should consider the total lifecycle impact of their products and services.
And also the triple bottom line has huge benefit:
 Consumers consider product content and other vital information pertaining to a
product before purchase and would generally consume more of products that meet
their health and safety needs;
 Consumers were also particular about the nature of investment companies are
involved in, and would generally buy the products of companies that contribute a
substantial amount to society’s wellbeing;
 Investors perceived that green corporations were less likely to feel the impact of a
market crash and their stocks inclined to future growth more than non-sustainable
ones;
 Managers opined that while business turbulence caused by negative societal reaction
could distort profit margin, sustainability reports significantly reduces stakeholders
pressure and negative reactions from host communities (as was the case in the Niger
Delta region);
 Employees as part of the society agreed that satisfying their individual needs could
ultimately satisfy corporate needs and society needs, thus, were also willing to
contribute part of their pay for social welfare

Triple bottom line reporting is becoming more widespread amongst both large and small
organisations. Triple bottom line reporting makes business decisions and actions more
transparent and allows people to gain a thorough understanding of a businesslevel of
corporate social responsibility. The triple bottom line report also helps manager to assess
and compare their performance across all three criteria against the business objectives
and long term goals.
So, would you consider the triple bottom line implementation as a promising business
opportunity for future? I am looking forward to your response for this opportunity.

King Regards,
Jennifer Li

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Short Answer Question 3

Under the laws of agency, when can a finance broker act as a limited
agent of a credit provider?

Within an organisation, the framework and policies exist to define the steps, processes
and relationships. Whether they work in an organisation or independently, the
relationship is between principal and agent. An agent is one who, while not directly
employed by them, is authorized to work under the control of and on behalf of another,
who is known as the principal. There is obviously a distinction to be made between a
broker who acts exclusively as agent for one particular lender, on one hand, and a broker
who is free to pick and choose options for their client, from a range of different lenders
and products, on the other. In regard to some types of credit facilities, the finance broker
may also act as a limited agent of the credit provider. If they do not in fact act for both
parties they are likely to also have a responsibility and duty of care to both parties.

A finance broker is a go–between (or intermediary) between a consumer wanting credit

and a credit provider. For the purposes of this Code a Finance Broker is defined as being a
person, corporation or partnership, that, as an agent, in the course of business negotiates
or arranges loans of money or other credit facilities on behalf of Clients and is paid for
that service either by the Client or a Credit Provider or both, including the act of
originating and/or managing such loans or Credit Facilities on behalf of Credit Providers.
In practice, finance brokers can only source loans from a limited panel of credit providers
and products and in some cases, finance brokers only refer to one credit provider.

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Short Answer Question 4

(a) Prospectingis a continuous process of gathering the names of
potential buyers who are likely to be interested in purchasing the
broker's product. Select one business or professional
contact e.g. brokers, business associates and associations and
one person from your personal network e.g. friends and family
and detail how you will contact them by using a technique from
the list below or other technique:
 advertisements
 databases
 direct mail
 internal company referral systems
 networking groups and events
 referrals
 telemarketing.
(b) You have contacted a person and have spoken to them using one
of the techniques above. How would you develop and cultivate
the relationship, in order to market to them and benefit the
organisation, in an agreed upon timeframe?
(c) How would you cooperate with other professionals and third
parties to expand and enhance the reputation of the organisation
and to identify new and improved business practices?
(d) Once you get a referral how would you follow them up to secure
the new business relationship?
(e) What (i) media (ii) marketing and (iii) public relations tools would
you use for your business?
(f) The text states that sales “Techniques involve looking at things
from the point of view of the prospective client and
understanding buyer motives”. Identify three potential buyer’s
motives and discuss how you would tailor your approach to each.
a)
Prospecting is an important part of sales. As a broker, communication skills come to the
fore when contacting one of the friends. Make warm calls are quite popular and effective.
It can be incredibly useful to warm up the prospects before making the initial contact. It
will increase chances of a warmer reception by familiarizing the prospect with the
company affiliation before making the call and establish credibility and trust before
reaching out to new prospects. Giving them introduction of the products, services,
organisational values and experience and informing them of the broker’s role. Listening to
their needs and make some questions to clarify their needs. The broker may
explainsomething of the types of products and services on offer, client charter information
and the organisational values, mission and ethics of a particular lender.

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By changing the position from “salesperson” of products and services to a provider of

solutions, it can increase the chance of getting referrals from happy customers. Draw on
these referrals when it comes time to introduce to a new prospect. When you become a
resource for your clients, before and after the sale, they’ll remember your help and will be
willing to help you in return.

Prospecting can help broker reduce uncomfortable pauses, use the right language, and
respond to common objections and make sure to actively listen to your prospects and
customize your conversation based on their needs.Focusing on building relationships
while prospecting can make successful sales. Building a foundation of trust can help you
and the prospect become more comfortable with each other, so once selling techniques
come into the picture, they’ll be more effective.

b)
The development of marketing strategies that personalise the relationship and maximise
the benefit to the organization can work through identifying customers, differentiating
among them, interacting with them, and customising the products or services to fit each
individual customer’s needs. Here are some of the strategies that will help to develop
relationship:
 Communicate frequently – Make every customer interaction count, it is important
to communicate frequently and vary the types of messages you send. It can
combine e-mail, direct mail, phone contact and face-to-face communication to
keep customers moving through the process of the products or services.
 Build two-way communication – When it comes to customer relations, "listening"
can be every bit as important as "telling." Use every tool and opportunity to
create interaction, including asking for feedback from customers.
 Enhance customer services – Treat customers as individuals who are respected
and valued. It will help build repeat business, create positive word-of-mouth and
increase new customers.
 Surround customers with valuable information - Keep them informed on the latest
trend, price or development about the products or services by using emails,
website content, social media, and other methods of outreach but do not be
invasive.

c)
In order to cooperate with other professional and third parties, I believe a person must be
able to demonstrate the follows quality to expand and enhance the reputation of
organisation and to identify new and improved business practices:
 ability to liaise, develop and secure long standing and effective relationships
 application of high level communication, negotiation, interpersonal and

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relationship management skills

 application of knowledge and understanding of the goals, policies and procedures
of the organisation
 ability to monitor and introduce ways to improve work relationships
 consideration of, and adaptation to, any special needs of customers, including
cultural, language, race, religion, ethnic origin, socio-economic status and
demographic needs

d)
Crafting an effective customer referral program will take time. There are five points that
will help to get started right away.

1. Timing
Asking for a referral is a little like asking for a sale. In both cases, timing is everything.
Don’t ask for a referral the same day a customer signs up. Instead, wait until you’ve
developed a relationship with your customer before approaching the topic. Once you’ve
asked, consider waiting months or even a year to ask again.

2. Twice the benefit

The best customer referral programs are those that benefit the referrer and the referee.
These are the types of programs that a referrer is more likely to talk about and not feel
bad touting to their friends. The more they refer the better visibility you will receive and,
over time, the more sales you will attract.

3. Treasures
Most customers will want a monetary-related gift such as a discount on future
products/services, gift cards to a favourite shopping spot or cash. As you start your
program, try all three to see which one generates the most interest.

4. Tracking
Delivering on your promise once they’ve successfully referred. This process can
sometimes takes weeks, months or years for a client to come through. Make it a practice
to ask each new client how he or she learned about your company and then follow-up
with the referrer (and your new client) to administer your referral gift in a timely manner.
Tracking can be difficult when you have a large number of clients. A customer relationship
management (or CRM) system can be used.

5. Thanks
Don’t forget to say thank you each time a referral is successfully completed. Work to
nurture your relationship with the referrer and referee. They may refer again.

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e) (i)
The choice of social media tools options are available below:
 Social networking sites -- Businesses can also develop their own profiles or pages
and attract followers for the purpose of gaining new customers,
branddevelopment and networking.For example Facebook, Pinterest, Instagram
and Google+.
 Job networking sites -- build a professional business profile and connect with
networks of skilled people for the purposes of recruitment. LinkedIn is one
example.
 Blogs -- are typically public and allow readers to comment on posts and interact
with the author. They can be hosted in-house or through blogging platforms that
provide content management software and website hosting. Like Blogger and
WordPress.
 Social-news communities -- are websites where members discover and share
interesting news or links to others in the community. Some examples include Digg,
StumbleUpon and Reddit.
 Location-based services -- helps to connect and interact with other people and
businesses in your area. Foursquare is an example.

e) (ii)
Here are a few of marketing tools:
 HubSpot Marketing Free -- It links with your website and collects a wealth of
information that allows you to see where your web visitors are coming from, what
pages on your site are converting, and much more. Analytics can also be incredibly
helpful for re-targeting. In addition, Hubspot's free tool integrates with a wide
range of other online tools, like Wordpress, Shopify, and others.
 Buffer -- It has all the important features with a social media management
platform - post scheduling, solid analytics, and the ability to customize posts for
each social network.With Buffer's browser extension, you can quickly and easily
share what you're reading online. No more logging into to three different social
networks, copying and pasting the link, and deciding what to say about it on each.
 SurveyMonkey–This is a survey and questionnaire tool for marketing researchthat
offers a robust free option, you can design and send effective surveys to your email
list and use Survey Monkey's analytics tool to analysethe answers.You can use
expert-reviewed templates and questions to make sure the data that you're getting
will be accurate and helpful.
e) (iii)
Common PR Tools and Techniquesinclude:
 Attendance at public events. In order to attract public attention and keep it
engaged with a particular organisation or an individual, PR specialists take an

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advantage of every public event and the opportunity to speak publicly.

 Press releases. Information that is communicated as a part of the regular TV
or/and radio programme, newspapers, magazines and other types of mainstream
media achieves a much bigger impact than advertisements.Most people consider
such information more trustworthy and meaningful.
 Newsletters. Sending newsletters – relevant information about the
organisationand its products or services - directly to the target audience is also a
common method to create and maintain a strong relationship with the public.
 Blogging. To reach the online audience, blogging allows them to create and
maintain a relationship with the target audience as well as establish a two-way
communication.
 Social media marketingestablishes a direct communication with the public,
consumers, investors and other target groups.

f)
Three potential buyer’s motive:
 Relatively low price. I would compare products from market to show the price and
function; and recommend the lowest price with similar function quality to buyer
 Avoidance of pain. I would simplify the checklist for client. Be detail-orientated and
set up time frame
 Fear of loss or low risk. I would select few products from different issuer.
Explaining in which situation would it be cover and also in various economic
stages. After that recommend the one fit buyer the most.

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Short Answer Question 5

Pleased with the way you handled his complaint, Bob recommends you to
his 45 year old son, Basil. Basil Butler is a management consultant who is
living and working with his wife Daisy in Manhattan. Basil sends you an
email, explaining that his 41 year old wife is expecting triplets in six
months’ time. They plan to return to Melbourne next month and take up
residence in their old warehouse apartment in Fitzroy. They need urgent
help because their neighbour is planning to sell her adjoining apartment,
which they wish to secure. Daisy loves her old place and dreams of
extending their living space by acquiring and renovating the neighbour’s
apartment. She envisions demolishing part of the shared wall to join the
two apartments into one large, liveable space for a family of five.
Basil’s firm is relocating him to the Collins Street office. Daisy, however, is
a contractor who has successfully completed a series of projects for Basil’s
firm. She has been self-employed for 10 years and does not intend to work
for the next five years. Basil earns $200,000 p.a. and Daisy earns
$130,000. They owe $280,000 on the Fitzroy apartment, but they own a
beach house in Portsea outright. The beach house is valued at $650,000.
With a penchant for luxury cars, they also have $60,000 to repay on their
BMW and $10,000 on the vintage MG. They have put the majority of
Daisy’s earnings into her superannuation fund, which has now accrued
$400,000. Basil is unsure how much is in his superannuation fund. Sadly,
they invested the bulk of Basil’s earnings in a share portfolio which
crashed with the global financial crisis. The portfolio dividends only paid
$5,000 last financial year. Together, they have $127,000 in a savings
account and $50,000 invested in a long-term deposit. The reserve price on
the neighbour’s property is $510,000, however, she is prepared to sell it
for $495,500 if she does not need to engage a real estate agent and if
they will commit to a 30 day settlement. She has given Basil and Daisy
the option of a private sale and two weeks in which to make her an offer.
As she is divorcing, she is not prepared to extend the time to allow Basil
and Daisy to secure finance in Melbourne in person.
Basil and Daisy are too busy packing up their Manhattan loft to search for
finance options. They want you to find a suitable loan with attractive
terms and arrange all the necessary paperwork. Timing is their utmost
concern.
(a) Respond to Basil’s email by taking the following steps:
i. Analyse Basil and Daisy’s financial position based on the
extent of their disclosures. Use a financial calculator
or relevant software systems to help calculate their
personal and financial situation.
Note good calculators can be found online e.g.
https://www.genworth.com.au/lender/lmi-
tools/serviceability-calculator
https://mozo.com.au/home-loans or

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http://www.loansense.com.au/calculator/loan-
payment.html
ii. Outline the relevant processes for proper execution of
loan documentation and determine whether you will be
able to implement the necessary actions within the
neighbour’s timeframe. Also note whether there is any
need for specialist advice or involvement from other main
sectors of the financial services industry in this case.
iii. Describe how you will submit the documentation to the
appropriate lender in an appropriate manner to protect
client confidentiality.
iv. Research products and additional industry information,
then apply your industry knowledge to the current
situation. Synthesise this information into a clear and
concise format (e.g. short report or proposal) so that
Basil and Daisy can make an informed decision.
v. Write an email to Basil and Daisy to establish and
confirm their priorities:
 Establishing their risk tolerance and determining their
investment goals and expectations.
 Ask for any additional information you require to
complete your analysis in accordance with your firm’s
credit policy.
 Provide Basil and Daisy with an overview of the three
best products you believe are most suited to their
needs. Be sure to discuss the strengths, weaknesses,
benefits and risks, fees and charges attached to each
product.
(b) Write a confirmation email to Basil outlining the following:
 Basic requirements of the loan, including the amount, term
and interest rate.
 Disclose whether you have a strategic and commercial
relationship to the recommended product.
 Outline which documents you have attached as per
compliance requirements.
 Describe the appropriate timing of events in the loan
approval process. Check your writing for accuracy and
readability.
(c)
i. Download and complete the loan documentation
(this is found in your IIT elearning platform supporting
documents) Basil and Daisy require in a way that
accurately reflects their financial situation, personal
information and complies with lender requirements and
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guidelines.
ii. Copy and paste the “Loan Application” into sheet 2.
Name sheet 1 Loan application” and sheet 2 Client
records. Create a client record in an appropriate format
which will be accessible to other appropriate advisers.
You won’t need all of the loan application you copied so
cut the redundant details out and don’t forget to change
the heading from “Loan Application” to the “Client
Record”. Hint: in chapter 5 short answer question 5d you
are required to copy and paste the client record you just
created and update it with the case study details in
chapter 5. You might find it efficient to do this while you
are dealing with this question.
iii. Describe how you are going to prevent fraud and verify
Basil’s and Daisy’s identity/signature and their other
undertakings when you are not able to meet them
person.

a) (i)
Dear Mr & Mrs Butler,

Based on the financial information disclosed from you,I have used the serviceability
calculator software which can show your capacity of the loan amount you can serve. The
calculation shows you have very strong and enough capacity to serve the new loan and
the existing loans. Please find the attachment for the details of the loan amount and how
the calculator works.

If you have any questions, please feel free to contact me.

Kind Regards,
Jennifer Li

a) (ii)
Relevant processes for proper execution of loan documentation:
 provide necessary information include (ID, Income, Funds to complete purchase,
personal asset and liabilities, contract of sale etc)
 execution or signing the loan agreement and other documents
 payment of proper stamp duty on various agreements
 witnessing or attestation as required by a bank
 registration of charges ad prescribed under the law
 executing acknowledgement of dues from time to time

We could implement the necessary actions within the neighbour’s timeframe which is two
weeks to make the offer and 30 days to settlement.

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According to Basil and Daisy's financial situation, it is better to have advice from their
accountant. Basil and Daisy could use their cash in the bank to cover the deposit about
their neighbour’s property. They also can do a refinance to top up money then pay for it,
but refinance usually take 5-6 weeks. This will result in Basil and Daisy may not implement
all the necessary actions within the neighbour’s timeframe, and they need $510,000
rather than $495,500. On the other hand this option will allowed real estate agent to
engage, they don't have to touch their money in the bank, also will bring tax benefit.

a) (iii)
After all the documents are ready and the appropriate product has been chosen, we will
submit your application to the lender. Software application is the main way to deliver the
application to the lender. Australian Credit Licence holders, aggregators and finance
corporations all develop this kind of application. Submitting the documents electronically
by our system “Symmetry”. We will present all the documentations for assessment by
lender and ensuring it is confidential.

a) (iv)
Dear Mr & Mrs Butler,

It was my pleasure discussing with you over our recent email exchange about your loan
application requirements.

Please find the enclosed copy of our credit proposal recommendation for your
consideration. I am sure that our credit proposal on the three different loan terms will be
beneficial to you. These loan products are especially tailored to you based on your needs
and requirements.

Please feel free to contact me with any questions that you may have regarding the
proposal. I look forward to hearing from you positively on this proposal.

Kind regards
Jennifer Li

[Please refer to attachment for the credit proposal]

a) (v)
Hi Basil and Daisy,

Based on the information provided, you are planning to relocate, going to have triplets
and Daisy intend not to work for the next five years. Therefore, your long term investment
goal would be wealth for long-term care planning and protection of your lifestyle. Both of
you are in your mid forties and have more than twenty years to retirement. Therefore, you

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still have more time frames to recoup any possible losses. Also, you own a beach house,
accumulate superannuation and long-term deposits, thus the risk tolerance is
comparatively medium.

Also I would like to establish and confirm your priorities. How much deposit you can
afford? You have $127,000 cash and $50,000 long-term deposit. Also you have Fitzroy
apartment worth $530,000 and owe $280,000 which you can refinance the property and
put $140,000 into your offset account for cash flow. You also have a beach house valued
$650,000, you can cash out maximum $400,000(only in ANZ) for your flexibility. For
serviceability of the loan, Daisy have planned to take a rest for the next 5 years, so Basil's
income $200,000 will be the total family income. Expense will around $7,500 per month
for a family of five. If interest for the loan is 5%. You can afford $1,220,000 loan amount.

Investment goals: Based on the analysis before, we know that youhave enough ability to
purchase your neighbour’s apartment. According to Fitzroy best real estate agency's
reportthe two-joint apartment could be sold for $1,060,000 atmoment. After 5 years the
price should be go up to $1,350,000. So when we have the ability to serve the loan and
enough deposit to buy new properties we should keep the joined apartment and also
invest in other fast increasing real estate products.

In addition, there is some informationneeded to complete my analysis.

1. Previous address with date of moving in(within last 3 years)
2. Car loan statement (BMW and vintage MG)
3. Information about the share portfolio

Refer to current information, below are three products that for your selection:
 Bank of Melbourne Advantage Package
 Save up to 1.3% p.a. off standard variable rate P+I home loan
 Combine a home loan, credit card and transaction account to create your
all-in- one package
 No home loan establishment fee
 No monthly home loan administration fee
 No annual credit card fee
 No monthly transaction account-keeping fee
 No monthly full offset service fee
 Free redraw via Phone and Internet banking
 Annual fee of $395. This single fee covers up to 5 home or investment loans

 ANZ Breakfree Package

 Special interest rate 1.35% p.a. discount for standard variable rate P+I
 ANZ Breakfree annual package fee applies ($395)
 everyday banking account and credit card within an ANZ Breakfree Package
 enjoy a great range of discounts and benefits.
 No Loan Approval Fee on your ANZ Standard Variable Home Loan
 No monthly Loan Administration Charge on your ANZ Standard Variable
Home Loan

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 No monthly account service fee on one ANZ One offset account

 No annual account fee on your ANZ Frequent Flyer Platinum credit card
account

 NAB Choice Package:

 1.35% p.a. discount for standard variable rate P+I home loan (discounts
only apply under package)
 NAB Choice Package for an annual package fee of $395
 Get preferential interest rate discounts on home lending products.
 No application, annual card or monthly service fees.
 Ability to be offered a NAB credit card of your choice.
 Obtain insurance benefits to protect your assets. Enjoy interest rate
discounts on fixed and variable margin lending products.

If you have any questions regarding the above information, please feel free to contact me.

Kind regards,
Jennifer Li

b)
Hi Basil,

As per our discussion, I am writing this email to confirm the details for your loan
application. In your scenario, the loan amount requested is $396,400 with an interest rate
of 3.9% p.a. principal and interest repayment and loan term is 30 years.

We are licensed to arrange loans and leases under National Consumer Credit Protection
Act 2009 (NCCP Act). As a broker under Vow Financial (Aggregator), we will help you to
choose a loan or lease which is suitable for your purposes. Additionally, we will provide
you with information on a broad range of financiers and products. Once you have choose
a loan or lease that is suitable you, we will help you to obtain an approval. Thus, we do
not have commercial relationship to the recommended product.

Also, I have attached the following documents for you as a compliance requirement:
 Representative Credit Guide
 Privacy Disclosure Statement and Consent
 Credit Proposal Disclosure Document
 Preliminary Assessment

Last but not least, below is the appropriate timing of events in the loan approval process
in order you can have a clear understanding on it:
Preliminary Stage
- Initial contact with client
- Gather relevant information from client
- Review lender products, services and features
- Present option to client

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Application
- Compile information for loan processing
- Collect support documentations for loan processing
- Submit information
Approval
- Application result from lender
- Communicate to client
- Gather further required information
- Finalize pre-settlement conditions and arrangements
Settlement
- Complete loan documentation
- Disbursement of funds and finalizing

Please feel free to contact me if you need further information to assist you in making the
initiation to my request. Your prompt approval response would be appreciated.

Kind regards,
Jennifer Li

c) (i)
See the attachment with the name “Loan Application”.

c) (ii)
See the attachment with the name “Client Records”

c) (iii)
Client records should be stored in a safe and secure environment to safeguard their
physical integrity and confidentiality. After collected the additional information from Basil,
all original copy of records should be kept in locked filing cabinet and only those who need
access to the records for a legitimate purpose are able to use them. Also, electronic
records such as documents or information emailing from Basil need to be updated in
computer with password and store under individual folder e.g. clientfile/BasilButler. All
clients’ records need to be stored securely up to seven years.

In order to prevent fraud and verify Basil’s and Daisy’s documents, the following actions
need to be taken:
 Verify the names of the registered owner of the property. Obtain a copy of the
Certificate of Title for the property to check that Basil and Daisy own the title of
the beach house or Fitzroy apartment which will subject to the mortgage and
collateralise the loan.

 Basil and Daisy are not directly accessible to the broker to enable face-to-face
communication, ensure that the documents used by the person or persons to
meet the police check are sighted and verified as a true copy of the original, by a
suitable independent and verifiable witness.
 Seek original document rather than facsimile or photocopied records

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 Conduct a verbal verification of employment status of Basil by calling his employer

 Obtain a signed taxation return from Daisy as a good representative of income
status since she is self-employed

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