Professional Documents
Culture Documents
Assessment 3
Activity 1
Identify and explain the scope of three external dispute resolution schemes approved by ASIC for the
financial services sector.
Activity 1 Answer
ASIC rules and regulation direct 267 covers the outside debate determination plan depend
on the economic dispute. This plan too gives scope for a monetary company to require a
portion in AFCA. This plan also gives an opportunity for a monetary company to participate
in AFCA. Also, the ASIC carries out bilateral responsibility to maintain exchange the of
information with AFCA.
Activity 2
What are the main differences, from a purchaser’s point of view, of acquiring a property through
private sale and through an auction?
Activity 2 Answer
In Australia, one can offer a property by means of a private deal and by means of auction. In
an auction, the vendor can get a bunch of offering values and the most elevated offering is
chosen. Be that as it may, the worth of the most noteworthy offering must coordinate with
the lowest value of the property. Within the auction, the buyer needs to go against other
competitive buyers and the agreement does not happen also, the reserved demonstration
cannot be dictated by the buyer.
Within the case of a personal sale, the buyer can make a straight deal with the property
worth through agents. The broker can perform as a mediator between buyer and vendor
and the purchaser does not have to think of other buyers. Moreover, the buyer can do an
arrangement with the price set by a seller in an auction.
Activity 3
Activity 3 Answer
The Mortgage Broker business framework permits somebody to run his or her broker trade
within the franchise brand. Moreover, this brand gives extra back support, facilities, coaching
provision, and office arrangement to run the business with the interchange of limited
mortgage costs. As a benefit, a mortgage business framework makes a difference for
individuals to discover an item that meets their needs. In Australia, this is often a well-known
choice since it requires less working costs and time to set up a trade.
Activity 4
Activity 4 Answer
In case a moneylender needs to accept burrower applications, it has to make sure that
borrower age is taken into consideration. Age is a critical calculate in endorsing a home loan
since it characterizes the capacity and rate at which repayment can pay by the burrower. In
case the borrower's age is near sufficient to sixty, this implies that the sum of credit
recuperation rate is less; consequently, the full credit sum amount also reduced. Moreover,
when the borrower's capacity to gain diminishes, the repayment time moreover increments.
Activity 5
Explain how a reverse mortgage works, including assessing some of the risks.
Activity 5 Answer
A reverse home loan is like an old-fashioned home loan that permits borrowers to utilize
their home as a resource to get the mortgage. Usually, this is well known since each human
includes a certain put to life; thus, the bank continuously includes a ensure on the resource.
The bank can put hypothecation terms and conditions on the property and allow the
borrower to utilize the house with the minimum rules and regulations.
Activity 6
Finance and mortgage brokers are required to take reasonable steps to verify information provided
by a client. What does reasonable mean in this context?
Activity 6 Answer
To arrange loans the proper way, finance ad Mortgage Broker back got to take a few
obligations to guarantee that the whole loan recuperation sum gets back. The legitimacy of
the borrower documents needs to be checked properly to stop fraudulent activities. The
medical situation moreover ought to check in arrange to guarantee that borrower has the
long-run capacity to pay the loan. The loan applicant must have a clear credit rating to get
the home loan, the credit rating must remain between 750 to 1200. Mortgage Broker also
has to inspect the recent worth of consent and think about the effect of inflation on the
property.
Activity 7
What sort of records must a finance/mortgage broker keep with regard to personal advice provided
to clients?
Activity 7 Answer
In arrange to provide individual suggestions to customers, a Mortgage Broker needs to keep
a few records. The discussion ought to be recorded whereas making a telephonic
discussion. Paperwork as in the event that framework has to upgrade on time and to
maintain the transparency, at least one copy of documents must be sent to the costumers.
Within the case of face-to-face conversation, the suspected discussion ought to be recorded.
Activity 8
How must personal information be stored to comply with the requirements of the Privacy Act?
Activity 8 Answer
In case, any individual data must store, concurring with the Protection Act. 1988,
acknowledgment by clients ought to be recorded. In case any extra data is found regarding
the client, this has to be noticed and the customer’s special ID sometime recently should
certify information. The privacy law permits clients to halt get to the information after
confirmation as well.