Trade Practices Act Business that run in Australia are required to do so in an ethical manner and fairly. This law covers unfair market practice and Industry codes of practice. Financial Services Reform Act Covers various financial products and services into one licencing regime. This covers the introduction and requirement to provided product disclosure statements for financial products and the standards of financial service provider conduct. This reform act covers changes to PDF and qualifications requirements for financial providers. Financial Transaction Reports Act NCCP ACT This covers all regluated lending facilities inclusive of complex loan structures. The guildelines requires all reasonable enquiries are to be made with regards to the applicants financial positon and evidence obtained.
Personal property securities Act This law covers security intersts in person property such as company charges that form part of Complex securities. •Privacy Act This covers the handling of personal information during the process and forms part of all dealings brokers have with their clients and third parties. •Prudentail requirements Financial regulation that requires financial firms to control risks and hold adequate capital. •Security and consumer service laws Consumer protection laws for customers and securities provided 2. Complex Features of a Client Situation and Needs. Explain each of the following types of complex features that you may encounter in a client’s situation or needs: a.Commercial loans. These loans differ as they are secured by commercial properties. They are used to purchase commercial assets or to assist with business operation costs Complexities arise through the nature of security provided and the clients who require these facilities. Such loans will need to consider inclusion of GST on purchases and if vacant, specific fees and charges. Also, the need for financial reports or cash flow statements and tax returns for companies. Cash flow projections, activity statements may be requested in the assessment stage. b.Chattel leases. These are mortgage products secured by moveable personal property. The lender provides funds to purchase the property and has legal ownership rights over the property conditionally until paid. These loans are used when clients wish to maximise tax benefits or want to separate the debt from liens against traditional property to purchase items such as machinery, cars, commercial business equipment etc. c.Native title rights. Rights awarded to Indigenous people, with regard to claims of interest to the land and waters. Under the Native Title Act 1991 it is possible for Aboriginal or Torres Straight Islanders, to make claim to land and perform traditional customs and rituals.
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