List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Educate clients and build rapport | 1.1 Explain the finance and mortgage broking process to clients in a clear and unambiguous way, and clarify the background, credentials and role of the broker to build rapport 1.2 Present the services, values and capacity of the organisation to clients and confirm client understanding of fees and charges 1.3 Identify and confirm procedures for complaints handling and resolution with clients |
2. Determine clients’ existing financial situation | 2.1 Ask clients to disclose relevant facts to begin determining their personal and financial situation and establish clients’ current income, expenditure and liabilities 2.2 Determine current investment and assets position of clients and conduct initial analysis of clients’ financial position based on extent of client disclosure |
3. Determine client goals and priorities with respect to broking services | 3.1 Ask clients to clarify their product expectations 3.2 Comprehensively explore differences in what products provide and what clients expect, and respond to client concerns, if any, promptly and appropriately 3.3 Establish and confirm client priorities 3.4 Seek specialist advice where necessary or refer clients to appropriate sources where required advice or services cannot be provided |
4. Prepare necessary documentation follow up | 4.1 Document and check all relevant client facts, information, financial and personal histories and manage confidentially in accordance with organisational policy and guidelines, and relevant legislation and industry codes of practice 4.2 Create or update client records where necessary in a clear and concise format, and file securely in a format and location readily accessible to other appropriate advisers |
Evidence of the ability to:
use effective communication skills to build rapport with clients and clearly explain information relating to finance and broking processes and products
document and analyse clients’ financial position according to organisational and industry requirements
comply with company policy and relevant legislation in regards to disclosure so clients can make informed decisions.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
explain basic financial and accounting terms and concepts relating directly to mortgage or finance broking including:
variable and fixed rate interest rates
types of mortgage accounts
procedures and principles of deposit bonds
financial records relating to different ownership models
describe key features of complaint handling and resolution processes, and roles of the various alternative disputes resolution schemes and services
explain credit and credit reporting services
describe key features of the economic environment and business cycle, financial markets and the roles of industry participants, interest rates, exchange rates and inflation
identify and describe key features of the legal environment and relevant legislation affecting finance and mortgage broking services in regards to:
disclosure
privacy
industry codes of practice
National Credit Code
describe the key features of lender’s mortgage insurance
explain loan transaction terminology and definitions of the parties involved including:
lender and borrower
lessor and lessee
mortgagee and mortgagor
explain real estate terms and concepts including:
land titles and searches
strata title versus company title
multiple securities
securing second mortgages
subdivisions of title
partial discharge of mortgage where multiple securities are held by lender
categorise and explain types of fees and charges.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the finance and mortgage broking field of work and include access to:
office equipment, technology, software and consumables
finance and mortgage product information
relevant software system and data.
Assessors must satisfy NVR/AQTF assessor requirements.