FNS40815 Certificate IV in FINANCE & MORTGAGE BROKING

FNSFMB403 Present broking options to client

Assessment 2 - Performance

FNS40815_ FNSFMB403Assessment 2 REAA Released January 2019

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Section 1 – Review case Study

Requirements

Download and review the Delayed Settlement Case Study located in the Assessment
Resources folder.

Section 2 – Assess Action Required

Now complete each of the following steps:

1. Assess whether the lender correctly identified and documented relevant product information
that met the client’s needs, and presented suitable options to the clients at a level of their
understanding

The lender have correctly identified and documented the product information in accordance
with client's requirements. Clients request for a debit card attached to a Home Loan Facility,
was offered to the Client.

However, the lender failed to present suitable options to the clients at a level of their
understanding. The Lender should have explained the other fees and charges applicable
with the loan before settlement. Further Lender should clarified that how it was different from
application fee, which is not being charged to the loan.

In addition, Lender should have explained the ramifications of not returning the documents
in a timely manner.

2. How would you negotiate effectively and gain commitment from clients to settle the complaint?

I would treat the clients complaint in a courteous and serious manner. I would then address
each point of their complaint and refer to the credit guide, written agreement (documenting
the features of the loan, applicable fees) and a copy of the compaints handling procedure
adopted by the lender.

I would also refer to any disclaimers that would have been communicated expressly or in
advertising relating to the time taken for the end to end process. I would then highlight the
delays relating to changes requested by the client an the impact on the overall time taken.
following this I would acknowedge and take acountability for the delays caused by myself or
the lender including the lack of understanding that the loan funds could have been accessed
via online banking and prevented the need to wait for the debit card.

Having presented the facts and having each party accept their role in the delay and propose
to the clients that the matter be settled through the refund of the legal documentation
recognising the lender could have been more proactive in ensuring the client was aware of
this fee and that the request for other financial compensation be dropped on the basis that
V1.0
the client did have access to the funds and REAA Released January 2019
had caused some of the delays themselves.
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3. Discuss and document what implementation actions you would put in place in anticipation of the
loan application proceeding.

Some further considerations should be adopted to be more clear and concise in the
information being provided to the client before actioning more steps with proceeding with a
loan application.

It would more beneficial to ensure the client is and must be made fully aware of the policies,
procedures, timelines, features, credentials of the information pertaining to the loan that they
applying for and this must be understood. Any charges/fees must be disclosed to the clients
before taking further steps in actioning the loan application. Should there be any areas that
the client is unsure of, it is also their responsibility to ask the lender for clarification, more
information or to help explain areas of their knowledge gap or specifically areas that address
investment knowledge pertaining to the product being offered.

V1.0 REAA Released January 2019

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