Attachment 1622280825

FNS50315 ASSESSMENT
Part 3 - Learning Activities and Assignments
for
FNS50315 Diploma of Finance and Mortgage Broking Management
Successful completion of the online Learning Activity questions and the 5 Assignments that
follow will qualify the trainee for the FNS50315 Diploma of Finance and Mortgage Broking
Management
© 2020 The National Finance Institute V.091220

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FNS50315 Assessment Tasks
PART 3 - ASSESSMENTS
INDEX
Summary of Contents...............................................................................................................3
How to Submit your Assessment Tasks....................................................................................5
Frequently Asked Questions.....................................................................................................5
ASSIGNMENT 1 of 5 - LOAN SUBMISSION [20 Marks]...........................................................11
ASSIGNMENT 2 of 5 - LOAN SUBMISSION for EQUIPMENT FINANCE [20 Marks].................15
ASSIGNMENT 3 of 5 - THEORY ASSESSMENT [30 Marks] ......................................................21
ASSIGNMENT 4 of 5 - SERVICING AND RESEARCH ASSESSMENT [30 Marks]........................25
ASSIGNMENT 5 of 5 - SUSTAINABILITY PLANNING ASSESSMENT [30 Marks].......................33
Mandatory Feedback Questionnaire......................................................................................35

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PART 3 - ASSESSMENTS
Summary of Contents
This section consists of the following assessment tasks:
A. Part 1 Learning Activity questions (90 marks) – if not already provided to you
please email support@financeinstitute.com.au to obtain the link to complete this
task online
B. Part 2 Learning Activity questions (60 marks) – if not already provided to you
please email support@financeinstitute.com.au to obtain the link to complete this
task online
C. Assignment 1 - CASE STUDY 1 - You are required to complete 1 submission to a
lender on behalf of these clients (20 marks)
D. Assignment 2 - CASE STUDY 2 - You are required to complete 2 submissions for
these equipment finance clients (20 marks)
E. Assignment 3 - THEORY ASSIGNMENT - This is an open book, multiple-question
assignment on some of the topics studied within this course (30 marks)
F. Assignment 4 – SERVICING AND RESEARCH ASSIGNMENT - You are required to use
what you have learned and your research skills to obtain information necessary to
understand the complex requirements and risks when providing broking services to
clients with complex loan needs (30 marks)
G. Assignment 5 – SUSTAINABILITY PLANNING Business Plan - You are required to use
the information provided in Part 1 along with research on the internet or in
Appendix to prepare a Sustainability Business Plan (30 marks)
H. Compulsory Education Department Feedback form
All items above are required by NFI
Total possible marks = 280. To reach a Competent status for this Diploma qualification,
trainees need to achieve 80% for each of the A. and B. Learning Activity online questions
and 80% for each of the 5 assignments.
Instructions -
Instructions help you understand the questions and complete the assignment
Questions/Scenario -
There may be one or more questions relating to the competencies you are required to
demonstrate.
Trainees must ensure that the Cover Sheet provided is included with the full completed 5
Assignment submission (ie. use the provided cover sheet as the front page to your 5
assignments and submit together).

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The Assessment is comprised of online questions + 5 assignments that as a whole make up

the complete Assessment. You are required to complete the online questions then submit
the remaining 5 assignments together.
Please note, extensive answers are not always required. Brief answers may be appropriate
for some questions as long as you ensure your response adequately addresses the
question.
IMPORTANT: Presenting your Assessment submission in a format that is clear and

appropriately structured forms part of your assessment and also demonstrates your ability
to communicate ideas and concepts and use technology.
After NFI has reviewed your Learning Activity question answers and your 5 Assignments
have been marked, your pass or resubmission requirement will be advised via the online
platform.
All Assessments tasks should be submitted together ie. at the same time, either by mail
or email or by uploading into the online platform.
Your completed assessments will NOT be returned to you as they are retained for audit
purposes as required.
The assessment tasks will also be used to assess your language and literacy skills. The
assessor will check your assignments to ensure
 that they are accurate with correct grammar and punctuation
 that they are appropriate to the target audience
 that they show planning and organisational skill
 that they demonstrate your ability to search for products and service information and
use problem solving approaches to identify customer needs and expectations.
TIME LIMITS - You have six (6) months in which to complete all of your course assessments.
You may submit your assessments at any time within this six month period. Extensions are
only available after this time for an additional fee. If your six months expires you will no
longer have online access available.
PASS MARK - The assessments above together form the full assessment content of this
Diploma course and you are required to achieve 80% on each assessment task in order to
pass the course.
KEEP A COPY - With all assessments submitted you should ensure you retain an electronic
or scanned or photocopied record of your submissions for your own files and in case of
possible loss in transit.

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How to Submit your Assessment Tasks
HOW TO SUBMIT YOUR ASSESSMENTS – There are three options for submitting your
written assessments as below. Please ensure a Cover Sheet is included.
Option 1 – Mail
The National Finance Institute

P.O. Box 1354
Capalaba Business Centre Qld 4157
Option 2 – Email
Email your work to assessments@financeinstitute.com.au
Option 3 – Upload
If you have access to the online portal where you complete your learning activity
questions, then you have the option to upload assignments in this same portal.
--------------------------------------------------------------
To contact NFI:
Phone: 1300 765 400
Email: enquiries@financeinstitute.com.au
Frequently Asked Questions
Q. Can I send my assessments through as I do them?

A. You should complete your online questions through the online platform then submit all
of your other assessments together at the one time.
Q. Is there an attachment file size limit for emailing?

A. Yes, if you are scanning your assessments you need to scan in black & white to keep the
file size small. All of your assessment tasks should be sent in one email, not multiple
emails. Total maximum attachment file size is 10Mb by email or 8Mb by upload.
Q. How should I name my assessments?

A. It is important that you name every file name with your own name and what it contains.
An example is below. You must adhere to this process. Example:
Vivien Xiao FNS50315 Diploma course Assignment 1.doc

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Q. What if I can’t get my file sizes small enough?

A. You will need to print and mail your assessments if you cannot reduce the file size to
within the 10Mb size limit.
Q. How long before I receive my results?

A. Please allow up to 3 weeks for marking your assessments.
Q. Can I get faster marking?

A. Marking will be completed as soon as possible and is dependent on the quantity of
marking we have at any one time. In most cases, your assessments will be marked in less
than 3 weeks but please allow up to 3 weeks as a maximum. We also offer an Express
Marking option for a fee which will reduce marking time down to 3 business days. Please
phone 1300 765 400 if Express Marking is required.
Q. What if I don’t pass one of my assessments?

A. You will be allowed an additional 2 attempts to complete each assessment if you do not
pass the first time. We will email to let you know if you do not pass first time and will
provide you with detailed feedback to assist with your resubmission. You will then have 21
days only to resubmit.
Q. How long do I have to resubmit a failed assessment task?

A. You have 21 days in which to re-submit your assessment
Q. Once I pass, how can I get my certificate?

A. Once your assessments have each reached a minimum of 80% your certificate will go in
line to be produced within 1 to 2 weeks of your pass. Your certificate and transcript will be
sent by regular mail.
Q. My letterbox is small, will my certificate be okay?

A. We stamp our mailing envelopes with “please do not bend”. If you do not receive your
certificate within the above guidelines and have not heard from us, please check your local
post office in case your envelope is being held there. It is Australia Post policy that if the
postman considers your envelope may be damaged from inserting into your letterbox, then
they may hold at the local post office for collection by you.
Q. I have changed my address since I first enrolled, what should I do?

A. Please let us know your new mailing address as soon as you are aware of it so that we
can ensure our mail will reach you. If you do not advise us of your change of address, your
certificate will need to be reissued at a fee of $29.95 and may take an additional 3 weeks.
Q. My friend has done these assignments and I have used my friend’s calculations, is this
okay?
A. To avoid us recording your work as a plagiarised submission, you must ensure that your
assignments are 100% your own work. NFI procedures are in place to determine if copying
has occurred and using another person’s submission as your own is not acceptable.

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LEARNING ACTIVITY
QUESTIONS
ASSESSMENT A and B
Part 1 and Part 2

Learning Activity Questions

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Learning Activity Questions

These questions form part of your final marks
Please complete online at
http://financeinstitute.ecampusv2.com.au/
HOW TO ACCESS YOUR QUESTIONS:
Workshop trainees: your trainer will provide you with

instructions and the link
Distance learning trainees: please refer to the email you

received upon enrolment which included your enrolment
key
Online learning trainees: please refer to the email you

received upon enrolment which included your enrolment
key
Please contact NFI if you have any difficulties

Ph 1300 765 400 or support@financeinstitute.com.au
Your assignment cover sheet follows overleaf.

This cover sheet is also provided in the online platform as an interactive document if you
prefer to type your cover sheet.

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ASSIGNMENT COVER SHEET FNS50315
I declare that the attached material is all my own work, that it is free of plagiarism and that all sources
have been properly acknowledged.
Signed ___________________________________________ Date _______________________
My method of enrolment in this course was:
PLEASE ENSURE YOU TICK ONE OF THE 3 BOXES BELOW
 - I attended a face-to-face workshop in …………………………………………………… (city) on ……………………………….. (date).
 - I enrolled as a distance learning student and received my course material by mail

 - I enrolled as an online e-learning student and completed my course online
Trainee NAME:
POSTAL Address:
Postcode
Phone (home) Phone (work)
Fax Phone (mobile)
Email address
Preferred method of contact

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THIS PAGE FOR NFI OFFICE USE ONLY
This page for NFI OFFICE USE ONLY Trainee name: ___________________________
Name of Assessor: _____________________________________
Date Assessment received: _____________________________________
ASSIGNMENT 1 Mark__________ / 20
Assessor’s Comments: ................................................................................................................................
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......................................................................................................................................................................
......................................................................................................................................................................
......................................................................................................................................................................
......................................................................................................................................................................
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ASSIGNMENT 1
ASSIGNMENT 1 of 5
- LOAN SUBMISSION [20 Marks]
Overview The purpose of this task is to allow you to demonstrate that you can complete the major
steps required in broking or writing a moderately complex loan for a customer – through
identification, development and implementation of loan options while assessing and
managing risks. The samples provided online in Appendix a) and b) will prove helpful.
Remember that what you prepare would, in the real world, need to be presented to the
client orally and thus must be understood by them.
INSTRUCTIONS Read the scenario provided and using the information and data supplied, prepare a formal
loan submission for a lender using the following headings. Use subheadings where
appropriate to ensure your submission will be easily read and understood by the lender.
The client file should contain the standard client information and data that would be
included in a typical submission for a loan of this complexity. Your lender submission
should include as a minimum the following headings:
1. Borrower’s Details
2. Background
3. Loan Purpose
4. Facility Details
5. Funds Position
6. Servicing Capacity
7. Security
8. Risk Assessment and Management (according to lender policy, guidelines and
relevant legislation). Consideration must be given to any environmental, heritage
or native title implications
9. Recommendations
10. List of Attachments*
* Attachments which would normally be included in a submission to a lender need only be listed for
the purpose of this assignment. You will not need to create “dummy” supporting documents.

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SCENARIO Andrew Bisset has been a real estate agent for over 20 years and jointly with his wife Jane
own 6 shops at 55 Park Road, Belmont. Mr and Mrs Bisset own the shopping centre under
the Bisset Family Trust. The property was valued 2 years ago at $1,450,000 and has a
current ABZ Bank Mortgage of $625,000.
Five of the shops are rented out for $96,000. The sixth shop is occupied by Mr Bisset’s real
estate business, Bisset’s Real Estate Pty Ltd, which pays annual rental of $42,000 to the
family trust. For tax purposes Bisset’s Real Estate pays rent which is $20,000 in excess of
the fair market rental value of the shop it occupies.
Bisset’s Real Estate Pty Ltd was formed at the beginning of the last financial year to take
over the real estate agency business, which was previously conducted by a partnership
between Mr Bisset and Joseph Hooper. Bisset’s Real Estate Pty Ltd took over the business
when Mr Hooper retired; Andrew Bisset is the sole director of Bisset’s Real Estate Pty Ltd.
Mr and Mrs Bisset now wish to acquire 3,000m2 of land near their existing shopping centre
and hold it for 1 – 2 years pending rezoning. The purchase price is $600,000. The land was
previously used as a State Government Health and Dental Centre, but the building was
demolished when it became obsolete. The land is currently zoned ‘Special Purpose’, but
the local council earmarked the land for future ‘Commercial’ use in it recently released
Town Planning Scheme. The land is located at 423 Belmont Road, Belmont and has a two
street frontage with considerable passing traffic.
The Bissets have contracted to purchase the property in their capacity as trustees of their
family trust and settlement is due with 60 days. They wish to raise 100% of the purchase
price plus $25,000 for stamp duty, financing and conveyancing costs. They are willing to
offer both the land and their existing shopping centre as security for the proposed loan.
They will contribute a further $20,000 over the next 1-2 years to cover the costs associated
with re-zoning of the property and obtaining approval to develop another shopping centre.
ABZ Bank policy does not allow lending against land zoned ‘Special Purpose’ and cannot
assist with the purchase. The Bissets have appointed you to approach an alternative lender
to refinance their ABZ Bank Loan and obtain the additional funds required.
Assume an interest rate of 7% for a commercial loan, 9% for an overdraft.
Applicant’s Andrew Mark Bisset – DOB 29/07 1965 DL # 2945758

Information Jane Elizabeth Bisset – DOB 15/06 1967 DL # 2786454
Married with three adult children (one working in the real estate business)
Address: 12 Currumbin Close, Carindale QLD 4152
Accountant – Ainslie and Partners Telephone - 07 3349 9999
Work History Andrew has been a real estate agent for 22 years in the Brisbane South East area, he
specialises in commercial and industrial property (rent roll comprises 75% commercial and
industrial properties). His gross salary last financial year was $78,000. In the previous
financial year he drew $55,000 from the partnership with Joseph Hooper.
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Jane has worked as the property manager since Bisset’s Real Estate Pty Ltd took over the
agency after the partnership. Her salary last financial year was $43,000. She did not work
in the previous financial year.
Financial Last Financial year Bisset’s Real Estate Pty Ltd recorded the following financial results:
Information
Gross Revenue $346,000
Net Profit $ 72,000
Depreciation $ 14,000
Director Superannuation $ 11,000
In the previous financial year the partnership of Andrew Bisset and Joseph Hooper trading
as Bisset’s Real Estate recorded the following financial results:
Gross Revenue $422,000

Net Profit $ 84,000
Director Superannuation $ 11,000
The Bisset Family Trust purchased the shopping centre at Park Road Belmont 18 months
ago and its financial statements for the past financial year are as follows:
Gross Rental Income $138,000

Loan Interest $ 52,000
Management Fees $ 11,000 (paid to Bisset’s RE Pty Ltd)
Net Profit $ 50,000
Financial Position – Andrew and Jane Bisset
ASSETS
House at 12 Currumbin Close Carindale QLD $560,000
Share Portfolio (Blues Chip Listed Shares) $345,000
Motor Vehicles $ 60,000
Furniture $ 85,000
Cash at Bank $ 45,000
LIABILITIES
Home Loan with ABZ Bank $190,000
ABZ Bank Credit Card (Limit $20,000) $ 10,000
TIP
The servicing calculations need to be conducted manually showing all workings. Net profit minus
tax. Show addbacks. Then calculate outgoings including the new facilities, and lastly using the
correct formula provided in the course material calculate the DSCR.

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Financial Financial Position of Bisset’s Real Estate Pty Ltd

Information
Continued … ASSETS
Business Goodwill $250,000
Plant & Equipment $ 35,000
Debtors $ 30,000
LIABILITIES
ABZ Bank Overdraft (limit $40,000 secured by residence) $25,000
(Keep in mind that, in the absence of actual tax returns which would confirm the
income distribution of the trust, any profit would be distributed and taxed in the
hands of the beneficiaries. For the purposes of this assignment, assume company
tax of 27.5%, even though in "real life" of course you cannot assume and the
distributions would be clear in “real life” financials.)
Property being purchased

Vacant Land
423 Belmont Road, Belmont QLD 4171
Lot 84 on RP 9564
Zoning “Special Purpose”
Area 3000m2
Existing Property
Shopping Centre
55 Park Road, Belmont QLD 4171
Lot 43 on RP 9542
Zoning “Commercial”
Area 1850m2
Tenancies
Tenant Rent Term Rent Review

J & R Blend
$22,000 pa net 3 + 3 years Annually by CPI
T/A Blend News
Copelin Accounting Pty Annually by CPI
$18,000 pa net 1 + 1 + 1 years
Ltd
R Spragos Annually by CPI
$28,000 pa net 5 + 5 years
T/A Roger’s Deli
Vu Nguyen Annually by CPI
$20,000 pa net 3 + 3 years
T/A Care Pharmacy
M Goodson Annually by CPI
$8,000 pa net 3 + 3 years
T/A Good Alterations
Bisset’s Real Estate Pty Annually by CPI
$42,000 pa net 3 + 3 years
Ltd

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ASSIGNMENT 2
ASSIGNMENT 2 of 5
- LOAN SUBMISSION for EQUIPMENT FINANCE [20 Marks]
INSTRUCTIONS The assessment for this module is to prepare TWO submissions (see A and B below):
Task A: This first submission is for the client so that they have the facts on all their
obligations and fees and the structure of the loan. Remember that what
you prepare would, in the real world, need to be presented to the client
orally and thus must be understood by them.
Task B: This second submission is for the lender - a loan application to the lender in
order to gain pre-approval.
PART A – THE CLIENT

1. Prepare a list of questions that you would need to ask your clients about the
proposed transaction, that is, prepare your needs analysis (ie. Fact Find).
2. In a suitable format, prepare a submission for the clients ie. a Proposal
document.
What your client submission should include:
1. The parties to the loan

2. The security
3. The facility details
4. Lender details (options, recommendations) that are able to lend
5. Confirmation of the client’s complex requirements
6. The personnel that may be involved: eg. the client's solicitor,
accountant, financial advisor
7. The client’s responsibilities, so the client fully understands the loan
8. An outline as to the process timing and what the client needs to
arrange
9. The documentation needed to commence the borrowing
10. The name in which the client will sign the contract to purchase
11. A summary of all fees and charges
12. Your notes detailing how you have provided appropriate contact with
the client throughout the complex broking process
The samples in Appendix a) and b) will assist.

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PART B – THE LENDER

Prepare a loan submission to the lender for pre-approval.
Your submission should include as a minimum the following headings:
1. Borrower’s Details
2. Background
3. Loan Purpose
4. Facility Details
5. Funds Position
6. Servicing Capacity
7. Security
8. Risk Assessment and Management (according to lender policy, guidelines
and relevant legislation). Consideration must be given to any environmental,
heritage or native title implications
9. Recommendations
10. List of Attachments*
* Attachments which would normally be included in a submission to a lender need only be listed for
the purpose of this assignment. You will not need to create “dummy” supporting documents.
EVIDENCE In order to be deemed competent, you will need to evidence the ability to:
REQUIREMENTS • Develop detailed broking options designed to maximise the client’s
outcomes and reach client objectives which incorporate elements from
research and which address complex needs and issues
• Identify and describe key assumptions upon which the plan is based
• Provide a detailed analysis of research strategies and findings
• Test and make appropriate checks on a proposed plan for its integrity and
compliance
• Assess the impacts of taxation, social security, economic and other
government policies on client investment and financial requirements
• Interpret and comply with industry regulations and codes of practice
• Identify the roles of associated financial advisers and work effectively with
them
• Assess broking options, financial markets and investment characteristics
• Use appropriate sales and marketing methodologies and provide
justification and research evidence
• Gain client feedback on and/or agreement to the plan
• Prepare materials and personnel to effectively implement complex loan
structures
• Establish appropriate audit trails and effectively document records and data.

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SCENARIO Commercial Equipment Finance

for Ray Henley and Steve Manning
The clients you met with this morning have been referred to you by another
commercial client.
They are joint company owners Ray Henley and Steve Manning and they run a
successful and growing transport company. They have a diverse client base spread
over many industry sectors which is a conscious management strategy to ensure
that they do not have significant business risk to a specific market segment or client.
All contracts are written with 30 day payment terms. Background industry checks as
well as credit history checks are completed on all new business prospects to ensure
that there are no adverse issues that may impact on future trading arrangements.
Whilst they have only been trading for 34 months they have a solid business plan
with actual results to date exceeding projected sales and profit estimates included in
their plan.
The business was established with unsecured (apart from Personal Guarantees) Seed
Capital of $500k from a private investor based on a guaranteed return of $45k pa,
and an overall term of 5 years which also requires a principal reduction of $100k pa.
The loan can be repaid at any time without penalty.
Ray and Steve’s Requirements

To accommodate new contracts in hand and planned future expansion, the
applicants require establishment of an Equipment Finance Limit of $500k to
purchase Trucks and Dog Trailers in the next 12 months. On the advice of their
accountant, a new entity, Henman Holdings Pty Ltd ATF The Henman Discretionary
Trust, has been established to purchase equipment which will be internally hired to
Henman Transport Pty Ltd (the trading entity). Hire charges will equate to finance
payments. Ray and Steve are directors of both companies. The longer term
intention is for the Trust to acquire premises to be occupied by Henman Transport
Pty Ltd.
As part of this expansion the company has leased a second depot at a cost of
$6,000pm and will also retain the existing depot.
They currently have 5 employees and where needed are using sub-contract
operators to fill shortfall in their delivery capacity. Purchase of new additional trucks
and trailers will provide additional capacity and flexibility and reduce reliance on
sub-contractors who can be unreliable.
Whilst a limit is being sought, purchases will only proceed where additional work has
been contracted or older equipment is being replaced. Applicants are happy to
provide half yearly management accounts as an approval covenant to give a lender
comfort that projected sales and profits are in line with budgets.
Applicants are keen to reduce debt as quickly as possible and have therefore
decided to finance all new equipment over a 48 month term, without a
balloon/residual and will commit a refund of GST Input Credits as additional
repayments built into the contracted loan structure.

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Initial Fact Find Ray and Steve have both been in the transport industry for many years each being
Financial Controllers for major transport companies. Ray has an MBA and Steve a
marketing degree. These combined skills complement each other and assist in the
effective management of the business. Ray is married and has no dependants. His
wife is a school teacher and she will be retiring at the end of the year.
Steve is single and is presently completing a HR degree as they feel that as the
business grows these skills will be required.
Steve and Ray have provided the last two year’s financial accounts for the trading
business, as well as interim accounts for the current financial year.
(Note: You need to calculate the required servicing for the new debt and surplus
required for lender comfort. Assume an interest rate of 10% for the proposed debt)
Financial accounts
 Year 1- Sales $700k Net Profit $240,000

 Year 2- Sales $812k Net Profit $358,000
 Current year interim indication- Sales $1.125m Net Profit $506,000 (10
months); Operating Costs include – Depreciation $86,000, Interest $52,000,
Sub-contractors $71,000, Directors’ Superannuation $60,000
 Wages to partner one $100,000 (paid as Fully Franked Dividend)
 Wages to partner two $100,000 (paid as Fully Franked Dividend)
 Payment to private investor (flat fee) $45,000- Expensed in P&L as Finance
Cost
 Existing Equipment Finance (Chattel Mortgages) repayments of $5,000pm

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Applicant  Ray Henley net income $100,000 (paid as fully franked dividend), owner
Information occupied property $850,000 with debt of $250,000 (assume 7.2% P&I), credit
card limit $25,000 (with debt of $15,000, assume at 3.8%), contents $100,000,
superannuation $550,000, motor vehicle $40,000 with nil debt.
 Steve Manning - net income $100,000 (paid as Fully Franked Dividend), owner
occupied property $500,000 with debt of $350,000 (assume 7.2% P&I), credit
card limit $10,000 (with debt of $3,000, assume at 3.8%), contents $85,000,
superannuation $150,000, motor vehicle $25,000 with debt of $15,000 (assume
five year debt at 9%).
 Cash in business account $25,000.
Key Balance
Cash $25,000
Sheet Items
Debtors $220,000
Creditors $100,000
Notes:
They currently meet all creditor payments at 30-day terms.
Debtor collection has been solid with active management of debtors
and pre-contract investigation of new clients.
They have just signed a delivery contract with Organic Flower Growers
who supply to Coles Supermarkets state-wide. To accommodate this
work their initial purchase will be a refrigerated Pantec truck at a cost
of $145,000. Projected net profit from this contract is $60k pa.
TIP
The servicing calculations need to be conducted manually showing all workings. Net profit minus
tax. Show addbacks, then calculate outgoings including the new facilities, and lastly using the
correct formula provided in the course material calculate the DSCR.
P.T.O. for additional Tips on this assignment.

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TIPS
1. In this Assignment 2, your submission can be either:
a) Consolidation of all income and debt in assessing servicing capacity OR
b) Separate residential and commercial calculations.
2. Presentation – Although in real life you may well present the client part of this assignment
in person to the client/verbally, for the purposes of this assignment please present your
submission in a written report format. Remember to include Part A, the list of questions
that you would need to ask your clients about the proposed transaction, that is, prepare
your needs analysis/Fact Find. Then make use of Appendix a) and b) for guidance on layout.
Note that Appendix b) has key content points on page 3.
3. Risk management is the forecasting and evaluation of financial risks together with the
identification of procedures to avoid or minimize their impact. If you take a look at Ray and
Steve's requirements and the "fact find" area in the scenario, this will assist you in
providing possible risks and the relevant information to mitigate these risks, for example
strong servicing, short loan term with no balloon, etc.
4. Funds Position – As explained in Appendix b), the Funds Position should include a
calculation of required funds including purchase price and costs to ensure that borrowings
and equity are sufficient to complete the transaction. The clients are potentially buying
equipment costing $500,000 and it would be reasonable to say 100% borrowing requested.
Brokerage is payable by the lender and included in the loan repayments to them so there is
no additional cost in relation to brokerage.
5. Loan Repayments – If the loan is $500,000 and you calculate the P&I repayment amount of
$21.25 (showing under the 5 Years column in the Monthly Repayment Calculator table in
Appendix m), you would get a monthly repayment figure of $10,625 per month. However
the scenario in this Assignment 2 is based around a 4 year term not a 5 year term so your
calculation of the repayment amount would be a higher figure per month. If preferred, you
may also, or instead, source and utilise an online Chattel Mortgage repayment calculator.
6. Servicing Capacity – You can assume that the lender will allow you to use three addbacks:
Depreciation, Interest and the full amount of Directors’ superannuation (because they are
paying themselves in the form of fully franked dividends, not salary). Remember also to
use the rate of 27.5% when you work out the taxation on income. So simplistically you will
have income less tax, then add back the addbacks, take away their commitments and you’ll
be left with the servicing surplus and the DSCR.
7. Security – Security in the way of a mortgage over the homes of the Directors could be taken
but it is probably unnecessary in this case. The more likely security would comprise of the
Goods (trucks and trailer), the Directors' Guarantees and the GSA from Henman Transport
Pty Ltd.

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ASSIGNMENT 3
ASSIGNMENT 3 of 5
- THEORY ASSESSMENT [30 Marks]
– 5 marks for each question
When responding to the following questions you are to describe the processes and
resources used in each situation. Please provide evidence of any templates,
organisational material or technology used and/or provided to the client in each
situation. All references to written material or websites used must be provided (simple format).
Question # Question Detail
1. Describe how you gather the information required when establishing the
client’s complex lending requirements?
In answering this question you should refer to:

• Explanation of the services provided to the client
• Listening and questioning techniques you employ
• Your use of language appropriate to any cultural differences
• Your interpersonal skills and how you would deal with any emotive
issues sensitively
• Your ability to build/establish rapport
• Your professionalism
• Your communication skills
• Your provision of appropriate contact with client throughout the
complex broking process

Page 22 of 36
2. Describe how you record and document your interaction with clients?
In answering this question you must refer to:

• Templates used to gather information in initial interview
• Diarising or recording telephone conversations
• Procedures that are established for critical implementation, timing
and priorities
• The documentation gathered
• Any technology used to record or gather information.
• How you access and use appropriate specialist software,
organisational templates, spreadsheets and databases
• How your recommendations and loan structures, as presented to
clients, are documented according to organisation guidelines and
procedures
3. Describe how you research and consider complex broking solutions based
on the clients’ needs?
In answering this question you must refer to:
• How special or complex features of a client's situation and

objectives are discussed, reviewed and clarified
• The analysis of the client situation to determine opportunities and
constraints
• Research into loan structures or options including those which are
new or non-standard
• Consideration of financial issues in terms of economic, legislation,
taxation, legal, insurance
• In what conditions would the broker need to refer clients to a Tier
One advisor (eg. financial advisor or accountant)
• How possible loan structure or options are analysed, modeled,
prioritised and measured
• The process used to reject inappropriate options including checks to
ensure compliance with relevant Acts
• Assessment of options to successfully achieve the client’s objectives
• How you liaise with others, share information, listen and
understand.

Page 23 of 36
4. Describe and/or provide evidence of how you identify and manage risk
when dealing with clients with complex loan requirements?
In answering this question you must consider:
• Risk evaluation criteria eg. undertaking risk categorisation and

determining the level of risk
• Risk assessment tools (eg. valuation practices)
• Communication of the aspects of the valuation result/s to clients
• Discussion on the issues around an adverse valuation
• Establishment of the probability of risk including the severity
and/or impact
• Identification of stakeholders and how throughout the loan process
o you seek their views
o provide pertinent risk information – clearly describe risks
o recommend amendments to existing controls and report
any need for new controls
• How would you as a professional in the industry ensure that you
comply with industry and government requirements and
professional codes of practice?
• How would you read and interpret organisational and industry
information?

Page 24 of 36
5. Provide an example of how you present the loan options to the client,
including an explanation of why you chose that option or options. This
also must state the name of the lender and an explanation of why you
chose that lender.
In answering this question you must consider: how you guide the client
through options including:
• Discussion of impact – advantages, disadvantages, risks and
financial implications
• Fees charges and commissions inclusive of any fees paid by the
lender directly to the broker
• How would you explain to the client the lender conditions as they
comply with relevant legislation, regulatory guidelines, industry
sector compliance requirements and the lenders policy
• Research and documentation provided to the client
• Consultation required with other financial services professionals
(eg. accountants, lawyers, financial planners, valuers, etc.)
• Confirmation that the client understands the options presented and
any concerns are addressed
• Providing information on complaints resolution procedures
(internal and external) as included in the information provided to
the client.
6. Prior to presenting the loan options to the client did you identify any
concerns that the client may raise? What preparation was completed to
respond to these concerns?
Consider:
• Research/documentation materials
• Alternative recommendations
• Regulatory limits and financier guidelines
In your answer you should also refer to your ability to:

• Identify and respond appropriately to client concerns
• Exercise restraint when dealing with clients in conflict situations
• The process used to gain agreement to proceed from the client.

Page 25 of 36
ASSIGNMENT 4
ASSIGNMENT 4 of 5
- SERVICING AND RESEARCH ASSESSMENT [30 Marks]
– 5 marks for each question
Question 1
In this exercise we are analysing some financial statements in preparation for completing a
submission to a financier. The scenario is provided below and an income statement and
balance sheet is then provided for Wholesale Butchers.
You will then have 3 tasks to complete – A, B and C below. TIP: You may wish to reference
the INT Services Practice Activity which you completed in Part 1 of the course learning guide:
A. Using the 2 financial statements provided for Wholesale Butchers Pty Ltd,
calculate the ratios in the table provided and comment as to the risk using
Low/Medium/High rating:
B. Complete the manual Serviceability Analysis for Wholesale Butchers Pty Ltd by
inserting the figures into the table provided
C. List your comments on the outcome from your completed Serviceability Analysis
as you would if presenting this in a submission to a lender.
Scenario:
Mr Brett Olsen has owned his wholesale butcher company “Wholesale Butchers” for
the past four years. He is the sole director and shareholder of the company. The past
six months has seen an influx in orders and, to keep up with demand, he requires
another refrigerated van in order to maintain delivery standards and turnaround times
to his respective buyers.
Mr Olsen wants to purchase a secondhand van, 1 year old, from RV Dealers for
$55,000 and is considering a 5 year Chattel Mortgage (CM), with an interest rate of 9%
and monthly repayments of $1,133.21. He has opted not to provide a deposit and is
not seeking any balloon at the end of the loan term. As no deposit is to be applied,
repayments will be monthly in advance.
Mr Olsen’s only business debts are an overdraft with CBA with a limit of $25,000 and
current balance of $2,800 at 9% and his CM with 6% loan with Esanda for his existing
refrigerated van, with monthly repayments of $1,058 pm and 2 years remaining.
His financials for the financial years ending 2018 and 2019 are provided here for your
perusal and assessment (only $ are shown in financials, not cents, so there is some rounding in totals).

Page 26 of 36
Wholesale Butchers Pty Ltd
Income Statement
For the financial year ending 30 June 2019
2018 2019
$ $
Sales 485,000 509,250
Cost of Goods Sold 291,000 305,550
Gross Profit 194,000 203,700
Operating Expenses Advertising 1,250 1,300

Amortisation 500 500
Depreciation 9,000 7,650
Interest 4,372 3,735
Office Equipment 1,000 1,100
Rent 29,100 30,555
Salaries (Directors) 32,000 35,000
Stationery 800 925
Utilities 25,000 26,000
Vehicle Expenses 9,700 10,185
Wages/Staff 48,500 50,925
Total Operating Expenses 161,222 167,875
Net Profit 32,778 35,825

Page 27 of 36
Wholesale Butchers Pty Ltd
Balance Sheet
For the financial year ending 30 June 2019
2018 2019
$ $
ASSETS
Current Assets Cash 22,945 25,078
Receivables 4,042 4,244
Stock on Hand (inventory) 5,596 5,876
Total Current Assets 32,582 35,197
Non-Current Assets Plant and equipment 24,000 21,600

Vehicles 35,000 29,750
Other Non-Current Assets 2,348 2,574
Intangibles (Formation Costs) 6,250 5,750
Total Non-Current Assets 67,598 59,674
Total Assets 100,180 94,871
LIABILITIES
Current Liabilities Creditors 11,192 11,752
Overdraft CBA (Limit $25,000) 3,600 2,800
CM Esanda Current Portion ($1058x12) 12,696 12,696
Provisions Employees 4,042 4,244
Other 598 637
Total Current Liabilities 32,128 32,129
Non-Current Liabilities CM Esanda Long Term Portion 22,256 11,295

Total Non-Current Liabilities 22,256 11,295
Total Liabilities
and Provisions 54,384 43,424
NET ASSETS (Owners’ Equity or Shareholders’ funds) 45,796 51,448
NB. Notes to the balance sheet and income statement have been omitted for this exercise however must be provided
with every loan submission.

Page 28 of 36
Part A – Ratios
Using the financial statements provided - Wholesale Butchers Pty Ltd - you should
fill in the table below by calculating the 9 different ratios for each of the 2018 and
2019 years. Then in the Risk Rating column please state whether the risk rating
would be LOW, MODERATE or HIGH, for each of the ratios.
RATIO 2018 2019 Risk Rating

1. Current Ratio
2. Quick Ratio (Acid Test)
3. Return on Equity (ROE)
4. Return on Assets (ROA)
5. Debt to Equity Ratio
6. Debt to Assets Ratio
7. Leverage Ratio
8. Interest Coverage Ratio
(ICR) – Existing Debts 1
9. Debt Servicing Coverage
Ratio (DSCR) – Existing Debt 1
1
These two ratios will also be in the Part B Serviceability Analysis that follows

Page 29 of 36
Part B – Serviceability Analysis

Using the financial statements provided - Wholesale Butchers Pty Ltd - complete the
Serviceability Analysis below.
30 June 20__ 30 June 20__
Net Profit Before Tax (Note 1)
Plus Potential Add Backs:
Interest
Depreciation + Amortisation (Note 2)
Additional Superannuation (Note 3)
Extraordinary or non-recurring expenses (may be
Plus or Minus) (Note 4)
Earnings Before Interest, Taxation, Depreciation,
and Amortisation (EBITDA)
Less Taxation* calculated on Net Profit Before Tax
figure above (Note 5)
Available for Debt Service (ie. EBITDA less tax above)
Interest Cover Ratio:

Proposed Deductible Interest Costs:
Existing Overdraft (Base on $25k limit)
Existing CM Interest (Current + Long Term)
[Hint: $34,952 @ 6% for 2018]
Plus Proposed facility ($55k @ 9%)
Total Proposed Interest Costs
Proposed Interest Coverage Ratio (Note 6)
(EBITDA divided by Total Proposed Interest Cost)
Debt Service Cover Ratio:

Existing Overdraft from above, interest only
Existing Loan Repayments ($1,058pm)
Proposed Loan Repayments ($1,133.21pm)
Total Commitment Proposed
DSCR (Note 7) (Amount available for Debt Service
divided by Total Commitment Proposed)
* Corporate tax rate used is 27.5%
Notes
Generally only operational income is included unless non operational revenue is regular and reliable in which case comments
1
should support inclusion
2 Amortisation refers to the write-down of intangible assets such as patents, licenses or copyright
Only include if there is above superannuation guarantee levy and is thus discretionary. Salaries generally infers payment to owners
3 whereas Wages infers employees’ remuneration
4 Relates to one off items such as a gain or loss on sale of assets which reflect in the net profit but will not recur
5 Principal Repayments come from after-tax earnings so allowance needs to be made
6 Interest is a tax deductible expense and therefore the ratio does not require any allowance for taxation
New purchase will attract taxation deductions for depreciation and interest with a consequent reduction in the Net profit and the
7
taxation liability and therefore enhance the repayment ability somewhat. Usually comment if DSCR is below 1.2

Page 30 of 36
Part C – Comments
Complete some comments on the outcome from your completed Serviceability
Analysis for Wholesale Butchers Pty Ltd, as you would if presenting this in a
submission to the financier.
Comments may include but are not limited to:

Page 31 of 36
Question 2.
Please research the Internet (eg. Google) on the subjects below and review the course
material, then provide comprehensive answers to the following:
A TRUSTS
• What is a Unit Trust?
• What is a Discretionary Trust?
• What is a Hybrid Trust?
• What is a Discretionary Family Trust?
• What is a Trustee?
• Define the differences of each type of Trust, including the obligation/s of the
Trustee
• Provide an example of when each type of Trust would be used.
B COMPANY
• What are the legal requirements of a company?
• What are the personal obligations of directors by law (please summarise)?
• Can anyone be a director of a company?
• What is the minimum number of directors required?
Question 3:
From your research in the course and the Internet please provide answers to the
following (from a Financial Accounting perspective):
• What is a Balance sheet?
• What is a Profit and Loss statement?
• What is Depreciation?
• What is Liquidity Ratio?
• What is Current Ratio?
• What is Debt to Equity Ratio?
• What is a Cashflow Statement?
• What is an Asset?
• What is Liability?
• How is a Net Profit determined?
• How would you define Equity?
• Under Australian taxation conditions, what are allowable expenses (provide 3
acceptable examples)?

Page 32 of 36
Question 4:
From your research in the course and the Internet please provide a definition of the
following 4 products and give examples:
• Commercial Bank Bill
• Invoice or Factoring Finance
• Chattel Mortgage
• Asset Finance product or Equipment Finance
Question 5:
In the Australian Standard ISO 31000:2018 there are 8 Principles of Risk Management.
A) Please list six (6) of them and B) briefly state what each one is about.
Principle Outline of Principle

A B
Question 6:
There are many ways that an Industry Analysis can be completed. We have provided a
sample below of a simple process to categorise the overall risk of any business/industry
that you may choose to analyse. Please review the entries below. To simplify the process
some factors have been grouped together to alleviate any overlap of impact.
Task: In approximately 200 words, explain why you believe it is necessary to
categorise risks
Industry Low Risk Moderate Risk High Risk

Risk Factor
Life Cycle Mature Industry Mature or Saturated Decline or Introductory
Social/ Very unstable – strong trend
Stable trends Unstable trends
Demographic impact
Lower Fixed costs - Fixed Costs Higher than Very High Fixed Costs, Very
Cost Structure
Higher Variable Costs Variable Low Variable Costs
Economic Not impacted by Some impact by Heavily impacted by Business
Environment Business Cycle Business Cycle Cycle
Political None to little influence, Some to heavy, Strong Influence – heavily
Environment some regulation Influenced by regulation regulated
Few buyers, large search
Buyer Impact Many Buyers Fewer Buyers
effort, high budget required
Dependent on one or few,
Supplier Impact Many Suppliers Limited or Few Suppliers
large input value
Threat of New Lower start up costs, No new entrant barriers- very
High barriers to entrant.
Entrant access to market low costs
Threat of
Some substitutes - low High level of substitutes no
Substitute No Substitution
cost to switch switching costs
Product/Service

Page 33 of 36
ASSIGNMENT 5
ASSIGNMENT 5 of 5
- SUSTAINABILITY PLANNING ASSESSMENT [30 Marks]
Task: Please construct a written plan for sustainability for your business (or proposed
business). Your plan should be for a business which is finance in nature eg. mortgage
broking. Please incorporate all the points below into your plan. Length should be more
than 1000 words ie. two typed pages. Note, if you are in, or propose to be in, a sole trader
business or working within a structure that has their own business plan, then not all of the
points may be applicable to you however they should be covered in your assignment.
Simply say after the point “may not be applicable to my business” however most points
should be. Also please note that profitability is crucial to sustainability and should be
considered in any plan.
Additional assistance:
- We provide a document about Sustainability in Business in Appendix k
- You can utilise the internet to assist with your research
- A useful framework to use is the Triple Bottom Line concepts.
Points to cover in your plan:
• Define scope of sustainability policy - what do you want to achieve.

• Gather information from a range of sources to plan and develop policy.
• Identify and consult stakeholders as a key component of the policy development
process.
• Include appropriate strategies in policy at all stages of work for minimising resource
use, reducing toxic material and hazardous chemical use and employing life cycle
management approaches.
• Make recommendations for policy options based on likely effectiveness,
timeframes and cost.
• Develop policy that reflects the organisation’s commitment to sustainability as an
integral part of business planning and as a business opportunity.
• Agree to appropriate methods of implementation, outcomes and performance
indicators.
• Promote workplace sustainability policy, including its expected outcome, to key
stakeholders.

Page 34 of 36
• Inform those involved in implementing the policy about expected outcomes,

activities to be undertaken and assigned responsibilities.
• Develop and communicate procedures to help implement workplace sustainability
policy.
• Implement strategies for continuous improvement in resource efficiency.
• Establish and assign responsibility for recording systems to track continuous
improvements in sustainability approaches.
• Document outcomes and provide feedback to key personnel and stakeholders.
• Investigate successes or otherwise of policy.
• Monitor records to identify trends that may require remedial action and use to
promote continuous improvement of performance.
• Modify policy and or procedures as required to ensure improvements are made.

Page 35 of 36
This concludes your five assignments.

Please see the introduction for how to submit to NFI
Mandatory Feedback Questionnaire
Provided next is a questionnaire which forms part of your personal assessment of this course. This
questionnaire is an AQTF stand-alone document which is separated from your assessment once
received by NFI. Only your responses are input into the Department of Education & Training’s
statistical website – NO NAMES NOR ANY METHOD OF TRACKING RESPONSES IS RETAINED OR
REQUIRED BY THE DEPARTMENT.
Please return the completed, double sided questionnaire provided, returning at the same time as
your Assessment submission by either uploading or emailing.
We thank you for your co-operation with this Departmental requirement.

Page 36 of 36
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FNS50315 ASSESSMENT

Part 3 - Learning Activities and Assignments

© 2020 The National Finance Institute V.091220

© 2020 The National Finance Institute V.091220

This section consists of the following assessment tasks:

All items above are required by NFI

© 2020 The National Finance Institute V.091220

The Assessment is comprised of online questions + 5 assignments that as a whole make up

IMPORTANT: Presenting your Assessment submission in a format that is clear and

© 2020 The National Finance Institute V.091220

How to Submit your Assessment Tasks

The National Finance Institute

Email your work to assessments@financeinstitute.com.au

Frequently Asked Questions

Q. Can I send my assessments through as I do them?

Q. Is there an attachment file size limit for emailing?

Q. How should I name my assessments?

© 2020 The National Finance Institute V.091220

Q. What if I can’t get my file sizes small enough?

Q. How long before I receive my results?

Q. Can I get faster marking?

Q. What if I don’t pass one of my assessments?

Q. How long do I have to resubmit a failed assessment task?

Q. Once I pass, how can I get my certificate?

Q. My letterbox is small, will my certificate be okay?

Q. I have changed my address since I first enrolled, what should I do?

© 2020 The National Finance Institute V.091220

Part 1 and Part 2

© 2020 The National Finance Institute V.091220

Learning Activity Questions

HOW TO ACCESS YOUR QUESTIONS:

Workshop trainees: your trainer will provide you with

Distance learning trainees: please refer to the email you

Online learning trainees: please refer to the email you

Please contact NFI if you have any difficulties

Your assignment cover sheet follows overleaf.

© 2020 The National Finance Institute V.091220

ASSIGNMENT COVER SHEET FNS50315

Signed ___________________________________________ Date _______________________

My method of enrolment in this course was:

PLEASE ENSURE YOU TICK ONE OF THE 3 BOXES BELOW

 - I attended a face-to-face workshop in …………………………………………………… (city) on ……………………………….. (date).

 - I enrolled as a distance learning student and received my course material by mail

Phone (home) Phone (work)

Fax Phone (mobile)

Preferred method of contact

© 2020 The National Finance Institute V.091220

THIS PAGE FOR NFI OFFICE USE ONLY

Name of Assessor: _____________________________________

Date Assessment received: _____________________________________

Assessor’s Comments: ................................................................................................................................

Assessor’s Comments: ................................................................................................................................

Assessor’s Comments: ................................................................................................................................

Assessor’s Comments: ................................................................................................................................

Assessor’s Comments: ................................................................................................................................

© 2020 The National Finance Institute V.091220

© 2020 The National Finance Institute V.091220

Assume an interest rate of 7% for a commercial loan, 9% for an overdraft.

Applicant’s Andrew Mark Bisset – DOB 29/07 1965 DL # 2945758

Address: 12 Currumbin Close, Carindale QLD 4152

Accountant – Ainslie and Partners Telephone - 07 3349 9999

Gross Revenue $422,000

Gross Rental Income $138,000

Signed _____________________ Date _