Assessment cover sheet
For your assessment to be marked, you must complete and upload all tasks and this cover sheet via the AAMC Training Group portal. Your assessment tasks must be uploaded in an electronic format, i.e., Word, Excel, PDF, or Scan. Please see the step-by-step instructions in your Member Area on how to upload assessments.
Student details
Course name
Assessment name Complex Lending Assessment
Student name
When you upload your assessment, you will be asked to confirm that your assessment submission to AAMC Training is your work and NOT the result of plagiarism or excessive collaboration and that all material used from any third party has been identified and referenced appropriately. AAMC Training may conduct independent evaluation checks and contact your supervisor to discuss your assessment.
Checklist of attachments:
? Task 1 – Case Study ? A (Commercial purchase) OR ? B (Asset purchase)
and supporting documentation
? Task 2 – Short Answer Questions
Please indicate the style of course undertaken:
? Online ? Virtual ? Face to face Trainer’s name:
Once your assessment has been uploaded, it will be pending review with your nominated course assessor and marked within 5-10 working days. You will receive an email advising you have been marked as “satisfactory” or “additional information required.”
If you have queries relating specifically to your assessment, please log an ‘Assessment Query’ under the HELP tab on your Members Area dashboard, and a Student Support officer will respond. Alternatively, if you have an administration query, please go to ‘Admin Query.’ For example, I am having trouble with uploading my assessments and require assistance – can you please help me with this?
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Phone: +61 (03) 9391 3643 / +61 (0)8 9344 4088 OR Email: info@aamctraining.edu.au
COMPLEX LENDING ASSESSMENT
CREDIT TRANSFER
You may be able to claim credit transfer for a unit/s of competency that you have previously completed with AAMC Training or another RTO. If you have been awarded a record of result or statement of attainment for any of the units detailed below, then please go to the Credit Transfer tab in your Learning Centre and follow the prompts.
This assessment relates to the following units of competency:
• FNSFMB502 Identify and develop complex broking options for client
• FNSFMB503 Present broking options to client with complex needs
• FNSFMB504 Implement complex loan structures
Please refer to AAMC Training’s full Recognition Policy for further details.
About this assessment
In addition to thoroughly reading and understanding the contents of the Learner Guide, you may also need to access some forms and templates required to complete this assessment in the Useful Resources section of your Members Area.
IMPORTANT NOTE: Your assessor only needs to see the paperwork as if you were sending the application to a lender. When extra information is uploaded, it presents unnecessary work for the assessors and, in turn, delays our assessment responses.
As you are aware, our Learning Centre allows for five uploads per assessment. As there are many attachments required for this assessment, you may wish to embed documents or zip files as a way of minimising document uploads. Please see instructions on how to do this if you are not familiar with this practice.
Task 1 – Case Study A or B
We have embedded the assessment instructions to reduce pages of information in your submission. Please ensure you open and read the Case Study Preparation document first, followed by the individual Scenarios (A and B) to decide which scenario you wish to use.
Read this important information first
Scenario A – a Commercial Finance loan
Scenario B – a Plant, Equipment and Vehicle Finance loan
If you cannot open the embedded PDF documents in this assessment, please try updating your PDF reader. Alternatively you can locate the above Case Study information in your Learning Centre under the Resources tab.
Delete the checklist that is not applicable (A or B)
COMPLEX LOAN DOCUMENT CHECKLIST
Commercial Loan Application (Option A)
The following must be submitted with this checklist. You can use forms from your own business instead of these templates from AAMC Training’s Useful Resources, please ensure you replace the embedded documents here.
1. Assessment cover sheet ?
2. This checklist with completed embedded documents ?
3. File notes from the first contact to post settlement in chronological order
You need to include:
? when the Credit Guide was provided and discussed with the client
? when you discussed and handed material on the complaints resolution procedure (internal and external).
? Discussions with clients concerning risk, the impact of the risk, tolerance to risk, interdependencies, and implications. Address the Lender's attitude toward the risks and the clients understanding of the risk.
? NCCP requirements when using residential security, collect the answers to the following:
o loan is not unsuitable for the client,
o client is currently not in hardship,
o client does not see any foreseeable changes that may affect the ability to repay the loan
o when client intends to retire, how will they repay the loan if any outstanding debt
o why surplus funds are remaining as the client could borrow less if they were to use this.
? Any constraints you came across when considering broking solutions.
? the products selected for recommendation. Include non-standard or new in your selection, fixed, and variable options. Analyse and prioritise options, comparing features, fees and charges, and risks, and reject inappropriate options.
? Referrals to an accountant, financial adviser, or lawyer in broking recommendation.
? Why did the client choose the products?
? List opportunities you see that would benefit the client.
? Analyse financial issues in terms of economics, legislation, taxation, and insurance.
4. Authorised Credit Representative Credit Guide and Licensee Credit Guide
Privacy Statement and Consent Form
5. Client Needs Review/Fact Find
6. Combined Credit Quote and Proposal* OR Statement of Credit Advice
7. Cash Flow Forecast (Ensure you enable Macros for this document)
8. Loan Serviceability evidence (Ensure you enable Macros for this document)
Documents highlighted in yellow below are evidence documents and form part of the Case Study Scenario
Please dot point each evidence document and state ‘this document represents ……’, then add a few points of the exact information you have verified in that document. You do not have to make up fake documents – just provide the evidence of some of the information you would find in that document that supports the loan application.
Evidence of current or other lenders’ loan arrangements ?
Copy of Offer & Acceptance OR Contract of Sale ?
Copy of Council approved plans (Development loans) ?
Evidence of Income (Pay slips, Employers Letter, PAYG Summaries) ?
Copies of last two years Financial Statements and Tax Returns with annual variances explanation. ?
Copy of Business Registration & Constitution and/or Trust Deed ?
9. Complete preliminary assessment checklist
10. Complete compliance checklist
11. Fully completed Lender Loan Application
12. Notes to lender with details of:
? Clients’ background, business background
? Requirements
? Reason for product chosen
? Borrowing structure and reason why
? Reasons for variances in the two years’ financial statements
? A SWOT analysis
? Financial ratio analyses including Current ratio, Debt ratio and Equity ratio
? Your recommendation for approval
For training purposes, we are going forward with Notes to the lender instead of a Memorandum of Credit.
13. Anti-Money Laundering / Counter-Terrorism Financing ID requirements.
Remember to complete one form for each applicant
The provision of all the relevant information detailed above will ensure prompt issuance of your qualification.
Any omissions will cause AAMC Training to seek the missing data, proving costly to both parties. You must include this completed checklist with your documents embedded or attached with your cover sheet.
Samples of the abovementioned forms can also be found under Useful Resources – Forms, Documents & Templates of the Utilities tab at your login Dashboard – either in the Loan Application, Complex Lending, or Useful Forms folders.
COMPLEX LOAN DOCUMENT CHECKLIST
Plant, Equipment and Vehicle Loan Application (Option B)
The following must be submitted with this checklist. You can use forms from your own business instead of these templates from AAMC Training’s Useful Resources, please ensure you replace the embedded documents here.
1. Assessment cover sheet ?
2. This checklist ?
3. File notes from the first contact to post settlement in chronological order
You need to include:
? when the Credit Guide was provided and discussed with the client
? when you discussed and handed material on the complaints resolution procedure (internal and external).
? Discussions with clients concerning risk, the impact of the risk, tolerance to risk, interdependencies, and implications. Address the Lender's attitude toward the risks and the clients understanding of the risk.
? NCCP requirements when using residential security, collect the answers to these questions. Ensure you answer whether the loan is not unsuitable for the client, and they are currently not in hardship, and they do not see any foreseeable changes that may affect the ability to repay the loan. When the client plans to retire and how will they repay the loan if the term continues into retirement. Address why surplus funds are remaining as the client could borrow less if they were to use this.
? Any constraints you came across when considering broking solutions.
? the products selected for recommendation. Include non-standard or new in your selection, fixed, and variable options. Analyse and prioritise options, comparing features, fees and charges, and risks, and reject inappropriate options.
? Referrals to an accountant, financial adviser, or lawyer in broking recommendation.
? Why did the client choose the products?
? List opportunities you see that would benefit the client.
? Analyse financial issues in terms of economics, legislation, taxation, and insurance.
4. Authorised Credit Representative Credit Guide and Licensee Credit Guide
Privacy Statement and Consent Form
5. Client Needs Review/Fact Find
6. Combined Credit Quote and Proposal* OR Statement of Credit Advice
7. Cash Flow Forecast (Ensure you enable Macros for this document)
8. Loan Serviceability evidence (Ensure you enable Macros for this document)
Documents highlighted in yellow below are evidence documents and form part of the Case Study Scenario
Please dot point each evidence document and state ‘this document represents ……’, then add a few points of the exact information you have verified in that document. You do not have to make up fake documents – just provide the evidence of some of the information you would find in that document that supports the loan application.
Evidence of current or other lenders’ loan arrangements ?
Copy of Offer to Purchase / Supplier’s Invoice (showing serial numbers etc. to identify goods) ?
Copy of Broking Commission Tax Invoice ?
Evidence of Income (Pay slips, Employers Letter, PAYG Summaries) ?
Copies of last two years’ Financial Statements and Tax Returns (business and personal) ?
Copy of Business Registration & Constitution and/or Trust Deed ?
9. Complete preliminary assessment checklist
10. Complete compliance checklist
11. Fully completed Lender Loan Application, including the Lenders Loan Document Checklist
12. Notes to lender with details of:
? Clients’ background, business background
? Requirements for product chosen
? Risk issues addressed
? Security being offered
? Borrowing structure and reason why it was recommended
? Family tree or octopus structure showing all entities
? A SWOT analysis
? Financial ratio analyses including Current, Quick, Debt and Equity ratio
? Your recommendation for approval
For training purposes, we are going forward with Notes to the lender instead of a Memorandum of Credit.
13. Anti-Money Laundering / Counter-Terrorism Financing ID requirements.
Remember to complete one form for each applicant
The provision of all the relevant information detailed above will ensure prompt issuance of your qualification.
Any omissions will cause AAMC Training to seek the missing data, proving costly to both parties. You must include this completed checklist with your documents embedded or attached with your cover sheet.
Samples of the abovementioned forms can also be found under Useful Resources – Forms, Documents & Templates of the Utilities tab at your login Dashboard – either in the Loan Application, Complex Lending, or Useful Forms folders.
Task 2 – Short Answer Questions
1. As part of your client’s retirement plan, they are interested in buying a camping ground that allows 40 camping sites for tents only and has ten environmentally friendly cabins. The client is keen to add ten caravan/motor home sites to increase his revenue. It appears the land has native title rights, which your client is unfamiliar with, and what this entails. Explain what restrictions, requirements, and issues might be evident around native title rights.
2. A client has come to see you regarding the purchase of a heritage-listed terrace with two bedrooms and one living area with an open concept kitchen. The client intends to live in this property with their partner; however, they would like to build a second story main bedroom with an ensuite and study. What issues might you come across with a heritage-listed property? Include in your answer how you can overcome some of these issues.
3. How do you communicate verbally and non-verbally when dealing with clients who have the following special needs:
a) Visual or hearing impaired
b) English as a second language
c) Cultural differences.
4. Explain the complex issues that can arise when using the following as security:
a) Implications of borrowing against leased premises
b) Multiple securities of differing kinds
c) Rural/residential, crown, and rural land.
d) Specialised securities such as hotels.
5. Identify how the following forms of security can be utilised in complex loan structures:
a) Assignment of rental income to the lender
b) Joint and several personal guarantees or related company guarantees,
c) Multiple mortgages
d) Registered company charges
e) Second mortgages
f) The involvement of a unit or family trusts as either borrowers or guarantors.
Please refer to your chosen case study in Task 1 and answer question 6 based on the scenario.
6. After you analysed and prioritised options for the client and compared the features, fees, charges, and risks, you would have rejected inappropriate options. Please list two options that would have been inappropriate for the client and explain why.
Option 1
Option 2
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