Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSBNK512 Mapping and Delivery Guide
Assess complex loans

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSBNK512 - Assess complex loans
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to identify the capacity of a client to meet the terms and conditions of suitable loan products and services available. It applies to individuals who work with clients with special financial needs and consider complicated issues such as client financial structures and legislative requirements. Individuals apply research and analytical skills to complex and multifaceted scenarios to develop customised solutions for clients.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the relevant regulator for specific guidance on requirements.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

legislation, regulation, and organisational policy and procedures relevant to credit risk

common office equipment, technology and consumables

client financial profiles

credit product information

software systems and data.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: 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
       
Element: 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
       


Evidence Required

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.

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.

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.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
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 
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 

Forms

Assessment Cover Sheet

FNSBNK512 - Assess complex loans
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSBNK512 - Assess complex loans

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: