Task 3 — Financial services legislation and industry codes of practice

Task 3: Question 1

Conduct some research to identify websites that you could use to keep up to date with regulatory changes and changes in codes of practice in the mortgage broking industry.

Complete the table below with the following information:

• Two (2) Regulations/Legislations and two (2) codes of practice with which you must keep up to date.

• For both, provide the website name and URL address, and explain how these websites are helpful for keeping up to date with changes.

Task 3: Question 2

List two (2) risks and the consequences that are associated with not complying with the NCCP Act.

Task 3: Question 3

In your own words, describe the key features of the Privacy Act 1988.

Task 3: Question 4

(a) In your own words, describe the key features and the purpose of codes of practice.

(b) Provide one (1) example of how a code of practice would be implemented into a work situation for a mortgage broker. 

Task 3: Question 5

(a) In your own words describe best interests duty.

(b) Provide one (1) example of how the best interests duty would be implemented into a work situation for a mortgage broker.

Task 3: Question 6

(a) How would you communicate changes in regulation, legislation, or codes of practice to your colleagues?

(b) Explain how you would execute changes to your organisation’s policy, procedures and practices to ensure that you are meeting the changes (for example, the introduction of best interests duty). 

Task 3: Question 7

If you were unsure of how to apply any regulation, legislation or codes of practice to your role or interaction with a client, explain what you would do.

Task 3: Question 8

Remaining compliant with financial services regulation and industry codes of practice is vital. 

One way to make sure compliance is being met is through monitoring or internal audits.

You have been asked by your manager to implement an internal monitoring/audit process for your mortgage broking firm to ensure that the credit representatives are meeting their obligations with regulation, legislation and codes of practice.

Outline the monitoring/audit process that you have implemented to ensure compliance. You should include the following:

• How you will monitor/audit compliance.

• Who will undertake the monitoring/audit process.

• What tools you will use.

• How or where you will record the outcomes.

Task 3: Question 9

What information provided by a client needs to be retained by a financial services organisation, like a brokerage?