AFF3111 2007 Sem 1 Solutions

AFF3111 2007 Sem 1 Solutions - Semester 1, 2007 Solutions...

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1 Semester 1, 2007 Solutions – Final Examination AFF3111 Personal Financial Planning Question One (1 each = 10 marks) (a) (iii) (b) (ii) or (iii) (c) (iii) (d) (iv) (e) (iv) (f) (ii) (g) (ii) (h) (ii) (i) (iv) (j) (iii) Question Two (6 + 4 =10 marks) (a) Describe each of the following points satisfactorily: Step 1 Collect and assess the financial data of the client. Step 2 Determine the objectives and goals of the client. Step 3 Identify any financial problems that may exist. Step 4 Prepare a written plan which contains alternatives and recommendations. Step 5 Implementation of the agreed written plan. Step 6 Review of the plan (b) A Financial Services Guide (FSG) discloses to prospective clients the services of the adviser, so that the client can make an informed decision about whether to acquire the financial services offered. It should be written in a clear, concise and effective manner, and must include: (i) the name and contact details of the adviser and any special instructions as to how the client may give instructions to the adviser; (ii) similar information about the authorizing principal(s); (iii) the kinds of financial services provided and the financial products to which they relate; (iv) who the adviser acts for when financial services are provided; (v) the remuneration and other benefits that the principal, the adviser or any other associated person will receive from providing the financial services;
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2 (vi) information about the business relationship or other association between the principal and the issuers of any financial products capable of influencing the principal when providing financial advice; (vii) details of any internal, external complaints and dispute resolution schemes of the principal; (viii) a statement that the FSG has been authorized by the principal(s). Question Three (6 + 6 = 12 marks) (a) ASIC is the major regulator for this industry. It: (a) administers the Financial Services Reform Act and Corporations Act as it relates to the financial services industry; (b) acts as the single licensing regime for the industry; (c) releases policy statements to enunciate the law ( e.g ., PS122 Know Your Client (subsumed into FSRA), PS146 Educational Competencies of Authorised Representatives); (d) sustains confidence in financial markets; and (e) acts to protect the client from poor advice. (b)
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This note was uploaded on 07/19/2011 for the course BUS 3111 at Monash.

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AFF3111 2007 Sem 1 Solutions - Semester 1, 2007 Solutions...

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