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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Collate financial documents required to assess client’s borrowing needs
   • Identify the financial documents required by the credit provider to progress the loan application progress
   • Review documents to ensure compliance with organisational guidelines and procedures, and legislative and regulatory requirements
   • Engage in further consultation with the client as required
2. Analyse financial documents and assess risks of the borrowing needs
   • Analyse credit information to establish that sufficient evidence of accurate information has been provided
   • Identify and evaluate possible risks to determine overall level of risk associated with application
   • Identify issues that may require further consideration or consultation with other financial services professionals
   • Document risk assessment in accordance with organisational procedures
   • Evaluate borrowing request based on assessed information in accordance with organisational risk management policy
   • Determine credit terms and limits within organisational credit policy guidelines and advise customers of credit decisions
   • Complete credit account administration according to organisational credit policy and timelines, and legislative requirements

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

assess complex loans for at least three clients.

In the course of the above, the candidate must:

assess the impact of each option on the client’s financial circumstances

comply with relevant legislative, regulatory and organisational requirements pertaining to dealing with clients in difficult circumstances.

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Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

features and benefits of credit products and their application requirements

complex features of a client’s financial situation including:

high assets

income

expenditure requirements

complex taxation

nature and forms of securities to be taken

legal issues

organisational risk management policy

different structures available to clients to meet their financial goals including:

sole trader

partnership

company

trust – family, unit and hybrid

partnership, company and trust in relation to:

financial statements and tax returns

income, expenditure and accounting treatments

communication methods between clients, accountants and real estate agents in relation to financial statements and business structure

financial data including add backs to calculate loan serviceability

sources of income where multiple entities or structures are included in the client relationship

financial information needed for data entry into loan calculators to confirm loan serviceability

risk issues relating to:

borrowing risk and gearing

specific product risk

institutional risk

risk factors and return expectations of the client

volatility of income and capital

types of security to be taken for complex loan structures:

joint and several personal or related company guarantees

multiple mortgages

registered company charges

second mortgages

the involvement of unit or family trusts as either borrowers or guarantors

relevant legislation including state and territory legislation, charges and taxes.

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