FNS50315_ FNSCUS501 Assessment 1 V1.0 REAA Released January 2019 Page 1 of 7 FNS50315 Diploma of Finance and Mortgage Broking Management FNSCUS501 Develop and nurture relationships with clients, other professionals and third party referrers

Assessment 1 4609babb-de12-4f1b-948c-b7d9d0edade3 V1.0 REAA Released January 2019 Page 2 of 7 Activity 1 Clause 4 of the CBA Mortgage Broker's Code of Conduct says: "I will personally interview and identify (under AML/CTF requirements) all customers, including those introduced to me via any referral source."

Why will compliance with this clause help to maintain CBA's ethical standards. (Outline the organisation's social, business, and ethical standards relevant to building relationships and business). Activity 1 Answer 4609babb-de12-4f1b-948c-b7d9d0edade3 V1.0 REAA Released January 2019 Page 3 of 7 Activity 2 In an organisation, information flows forward, backwards, and sideways. This information flow is referred to as communication. Communication channels refer to the way this information flows within the organisation and with other organisations. In this web known as communication, a manager becomes a link. Decisions and directions flow upwards or downwards or sideways depending on the position of the manager in the communication web. As organisations grow, managers cannot rely on face-to-face communication alone to get their message across. A challenge the managers face today is to determine what type of communication channel should they opt for to carry out effective communication. To make a manager's task easier, the types of communication channels are grouped into three main groups: formal, informal, and unofficial. Identify and explain the terms formal and informal organisational communication channels. (Explain the role of different communication channels and tools in relationship development). Activity 2 Answer 4609babb-de12-4f1b-948c-b7d9d0edade3 V1.0 REAA Released January 2019 Page 4 of 7 Activity 3 Explain some of the benefits of entering into a referral partner negotiation on the basis of not having a set of preconditions, assumptions, or expectations for gaining agreement. (Describe effective interpersonal skills, and negotiation and communication principles). Activity 3 Answer 4609babb-de12-4f1b-948c-b7d9d0edade3 V1.0 REAA Released January 2019 Page 5 of 7 Activity 4 Identify and describe 3 reasons a mortgage broker might benefit for joining an industry association, such as the Mortgage and Finance Association of Australia. (Identify relevant associations, conferences and other relationship building opportunities). Activity 4 Answer 4609babb-de12-4f1b-948c-b7d9d0edade3 V1.0 REAA Released January 2019 Page 6 of 7 Activity 5 The key to networking relationship development is to be a communicative, approachable, and openminded person without prejudices, that is keen to exchange information with other individuals. Additionally, it is always helpful to set some goals that you want to achieve by business networking efforts. Identify and describe some networking goals a new mortgage broker might have. (Identify relevant business contexts for networking and relationship development)

. Activity 5 Answer 4609babb-de12-4f1b-948c-b7d9d0edade3 V1.0 REAA Released January 2019 Page 7 of 7 Activity 6 Mortgage brokers generally provide their services free of charge to interested borrowers, and are instead compensated by lenders.

a) How might this arrangement lead to a conflict of interest? b) What legal rights does a client of a mortgage broker have? (Outline the key requirements of relevant legislation, regulation and industry/professional codes of practice that apply to relationship management). Activity 6 Answer