UNO Bank (UNO), an ADI and ACL holder, operates through 700 branches across Australia. "Your Home" is a home loan product issued and promoted by UNO Bank. UNO Bank runs an aggressive marketing campaign to distribute "Your Home" through its retail branch network. Every "Your Home" customer is offered $10k cashback as part of the promotion. The distribution process developed and implemented by UNO involved the following steps:

• Firstly, the branch staff member asks the prospective 'Your Home' customer to fill in a questionnaire of 25 questions (called '1-25 review') on the financial situation, needs, and circumstances of the customer. At the end of the review, customers are provided with a choice to submit the review itself as a loan application.
• Secondly, the branch staff member provides a 'credit guide' that includes the credit quote, financial table, disclosure documents, a pre-approved loan offer, and an information statement enumerating the documents to be submitted for processing the loan application to the customer.
• Thirdly, the retail customers who have submitted the required documents mentioned in the information statement are provided with a 'fast-track' application channel to approve the loan within 24-48 hours.

You are employed in the legal division of UNO and are asked to review if the sale and distribution of "Your Home"breachany provisions of the NCCPA.

Question #2

Terry works as a senior mortgage broker with Bravo Home Loans (an accredited mortgage brokerage of UNO Bank). As part of the 'Your Home' campaign, UNO Bank offers an additional commission of 0.25% of the loan to the mortgage brokers.

Bravo Home Loans advertisement states"Did you know that the Best Interests Duty doesn't apply to banks? As mortgage brokers, we act in your best interests when recommending a home loan, whereas a lender sells you their products. In other words, we must always act in your best interest; however, if a customer goes to a bank directly, then the bank can act in their own interests and not those of the borrower. We give you peace of mind".

John works as a senior technology architect (earning $300000 p.a) with IMB and has been saving money to purchase his first investment home. John sees Bravo Home Loan's advertisement and approaches Terry for expert advice and guidance. Terry collects details about John and identifies that John has:

• Meticulously planned his finances, saving money for investments, retirement and entertainment. He has also set aside a substantial amount of money for emergencies which he does not wants to utilize for his investment home purchase.
• Preference to obtain a home loan from 'ABC Bank' (his trusted bank for 10 years) even though the loan fees/interest rates are costly compared to other credit providers.

Terry informs that he would be able to advice and guide John through his investment home purchase and would email John his advice within 48 hours. After considering a range of products

(Terry attaches a separate document that exhibits comparisons and calculations of all loan products he considered for John), Terry identifies the following loan products as suitable for John, but specifically recommends 'Your Home' loan by UNO Bank:

1. 'Advantage Home' loan from ABC Bank with a fixed interest rate of 3.25% for 25 years without any offset account and credit card.
2. 'Access Home' loan from XYZ Bank with a variable interest rate of 3.70% for 25 years with an offset account and credit card.
3. 'Your Home' loan from UNO Bank with a fixed interest rate of 3.25% for 25 years with an offset account and credit card.

You are employed with the ASIC's compliance team that reviews broker files and now need to decide if Terry acted in the best interests of John.