Student’s details

Instructions:

1. Complete all assignment tasks.
2. Instances of academic dishonesty (e.g., plagiarism) will not be tolerated and will be subject to disciplinary action.
3. Using artificial intelligence (AI) writing to complete an assignment and represent it as your own work qualifies as academic misconduct.
4. All documents (i.e., file notes, emails, fact find, loan application statement of advice) must be submitted in Word format. The supporting documentation (e.g., ID, bank statements, sale and purchase agreement, etc.) can be submitted in PDF format.
5. Submit your assignment via your assignment portal on Radar. You have already been emailed a user guide with step-by-step instructions on how to upload your assignments.
6. Please contact support@strategi.ac.nz OR assessor@strategi.ac.nz should you require any assistance.

Overview and important considerations

This assignment requires you to apply your knowledge of residential property lending products and needs and use the six-step advice process to:

1. Establish and define your relationship with your client (US31879 1.1) (US31877 2.2).
2. Determine client borrowing goals and collect qualitative and quantitative client information for the agreed scope of service (US31879 1.2) (US28385 3.1) (US31876 1.1, 1.2, 1.3, 1.4).
3. Analyse and evaluate client information to determine their financial situation (US31879 1.3) (US28385 PC 3.2, 3.3); (US31876 PC 2.1, 2.2, 2.3); (US31877 PC 1.2 part, 2.2, 3.2).
4. Develop residential property lending recommendations and present to the client (US31879 1.4) (US31876 PC 1.5); (US31877 PC 1.1, 1.2 part, 1.3, 2.2).
5. Implement residential property lending recommendations (US31879 1.5) (US31877 3.1).
6. Monitor and review your recommendations (US31879 1.6).

Assignment instructions

This assignment can be completed using three case studies provided in the ‘Assignment resources/templates’ section on Radar OR using two real clients and one case study provided in the ‘Assignment resources/templates’ section on Radar. All work submitted must be your own.

1. Client file 1: Relating to a new loan, use one of the case studies provided in the ‘Assignment resources/templates’ folder on Radar; or your own existing client and complete steps 1 to 5 of the Evidence checklist.
2. Client file 2: Relating to a new loan, use one of the case studies provided in the ‘Assignment resources/templates’ folder on Radar; or your own existing client and complete steps 1 to 5 of the Evidence checklist.
3. Client file 3: Relating to a new loan, You MUST use one of the case studies provided in the ‘Assignment resources/templates’ folder on Radar; and complete steps 1 to 5 of the Evidence checklist. For this client, you must also complete a review on them. (step 6 of the Evidence checklist).

We recommend using the case studies provided in the ‘Assignment resources/templates’ folder on Radar.

However, if you still wish to use real client files, please make sure you have legal access to use them. The real client files need to relate to residential property lending and not commercial loans. You can only use ‘real clients’ provided you meet the following requirements:

• You must have a current FSP number to be able to use your own clients, and
• The clients should be your own, not from one of your colleagues or your wider FAP.

Your real client files must have a wide range of needs and complex requirements. You are required to demonstrate that you can provide personalised advice.

If using the case studies provided in the ‘Assignment resources/templates’ folder on Radar, please make sure that you use current interest rates for your calculations.

You must complete and submit the Evidence checklist (Assignment resources/templates folder) to ensure that you have met all the requirements.

Before selecting an existing client file, you should review the evidence checklist to determine if the evidence requirements are present in your file. If not, it may be sensible to use the case studies, so that you can create the evidence required.

One of the case studies provided must be used as your review client for this assignment. This is because we need to assess certain aspects of the review process which may not have arisen in your own client review. The review needs to link back to the discussion you had with your client. The statement of advice needs to state that it is a review and discuss what has prompted the review. Note: A refix is not a review.

Review situations may include restructuring, refinancing, applying for a top-up for home renovation/adding a deck, etc.

As with all case studies, it is important to note that not all information may be available, similar to a situation where you would be meeting directly with a client. You should not change the basics of the case study, but you can add your own information to the diary notes/client records to create a more realistic situation. Any extra information added would likely flow through to your research and recommendations etc.

It is necessary to provide detailed documentation and evidence comprehensively for each client, demonstrating proficiency at the NZQA Level 5 standard.

Important notes:

• If using your own, existing client files, all references to names and other information that could identify the client must be blacked out to protect their privacy. Failure to do so will result in a failed attempt for this assignment. Students using the case studies do not need to black out names.
• Disclosure statements for real client files should be the disclosure statement used for that advice occasion. For the case studies, your current disclosure statement OR (if you are not an adviser) a mock-up of one should be provided. A template for this is available in the ‘Assignment resources/templates’ folder of your course material. It is important to match the stage disclosure that is appropriate to providing advice.
• All work submitted must be your own and comply with the relevant regulations and codes that apply to the financial services industry, demonstrating good conduct and best practices as a financial adviser.

Client files

Please provide a copy of YOUR disclosure statement (refer to template on Radar) for only ONE client file.

Please provide the following for EACH client file (i.e., three client files plus a review on one of the three client files):

1. Evidence of the client receiving your disclosure information.
2. The scope of service (or agreement) you have with your client for you to provide them with advice and what that advice will cover.
3. The completed document(s) you used to gather relevant information about your client and your interview notes (please include records of all discussions you have had throughout the entire advice process). Your file notes (if you do not have a CRM system that you can use there is a file note template available on Radar) which must include a copy of your analysis of the information provided by your client and the outcome of that research and analysis. The file notes need to discuss any issues that will impact upon the client’s eligibility for the loan and their ability to maintain their repayments. This should include as a minimum, analysis of the following: (US31876 2.1, 2.2, 2.3).

• The potential impact of external events such as changes to financial markets (banks, lending criteria etc.) or to the economic environment (interest rates, inflation etc.) on the clients’ asset base, earning capacity and their overall financial situation.
• Any reasonably foreseeable changes to the client’s circumstances (such as their employment situation or in their relationship) and whether these changes would affect the loan type or structure you recommend.
• The impact of any current or foreseeable economic, political, demographic and/or geographic factors on the residential property market, e.g. a general election in New Zealand (US28385 3.2, US31877 1.3).
• Any factors that may impact on either the property value or serviceability criteria for example:

– Unique features of the property;
– Ownership structure; and
– Type of title and the reason for the loan (US28385 3.3, US31877 2.1).

• The need to refer the client to any other specialist, such as lawyer, accountant, insurance adviser etc. This needs to relate to the discussions you had with your client (US31877 2.2).

4. Your statement of advice/record of advice to the client. This must contain, as a minimum, all of the following:

• Background of the client:

– Employment status, how much your client earns, income, income from other sources, the client’s goals and borrowing needs (US28385 3.1, US31876 1.2, 1.3).
– Client’s attitude and capacity for risk (related to borrowing).
– A summary of the client’s current financial situation and any factors that could impact on their borrowing needs, (i.e. their Statement of Position) (US31876 1.4, US31877 1.4).
– A summary of discussions with the client of their risk factors and how it applies to their proposed borrowing e.g. LVR requirements (US31876 1.1, US31877 3.2).

• A recommendation of at least one appropriate residential property lending product. Your recommendations need to include:

– The type of loan(s), the interest rate structure(s) and the loan structure(s) you are recommending and a discussion on how it meets the client’s needs/goals (US31876 1.5, US31877 1.2 part, 1.4, US28385 2.1).
– Your discussion needs to set out the features, benefits, key risks, and limitations of the loan you are recommending (US31877 1.1).
– A copy of the lender’s serviceability calculator (US31877 1.2 part, 3.2).
– A comment on any adjustments to the specific terms of the product(s) or service(s), such as the loan structure, that better meet the client’s circumstances and needs e.g. reducing the loan term, so it is repaid by retirement age (US31877 1.3).

• Discussion on any reasonably foreseeable changes to the client’s circumstances and how your recommendation may be adjusted accordingly. For example, a baby, a change in employment etc. The discussions need to be reflected in your client records (US31877 1.3).
• An outline of the specific actions to be followed to implement the advice. Identify who is involved in each action (client/adviser) and dates for completion. All the steps required to draw down the loan, including the involvement of other professionals, should be described (US31879 1.6).
• A copy of the completed property loan application to be submitted based on your recommendations. As a minimum, this should include: (US31877 3.1)

– A copy of the lender’s checklist.
– Cover sheet and diary note.
– Completed application form – this needs to be typed.
– Client authority and declaration.
– Proof of client income (if based on a case study, they can be simulated and don’t need to match case study facts).
– Proof of client identity (if based on a case study, they can be simulated and don’t need to match case study facts).
– Proof of deposit (if based on a case study, they can be simulated and don’t need to match case study facts).
– Identification of key dates.
– Details of other professional parties involved in the prospective borrowing/purchase.
– The lender’s serviceability calculator.
– If appropriate to the application, your documentation should include:

Client’s financial history (bank statements).

Registered valuation.

Sale and purchase agreement.

Building contract.

Trust deed.

Certificate of incorporation.

Proof of residency.

Rental agreement.

Boarder income.

How to compile and submit your assignment

1. Refer to the evidence checklist on pages 14-24. It is broken down into the six steps being assessed, with each evidence item listed.
2. The checklist provides a description of each of the evidence points that are required and a ‘Hint’ column that lists some examples of the type of document(s) where these are typically found. You do not need to provide proof of every document listed. They are there as a guide. However, some, or even many, of these documents will likely apply.
3. If you believe an evidence requirement does not apply you will need to explain this by typing in the evidence point box before loading into Radar. This should not happen often but if it does, you may be required to provide other evidence. The column ‘Other’ in the checklist is for this purpose.
4. If existing, real client files are missing a lot of these evidence requirements, it would be wise to either:
   1. Follow the six-step advice process for another new client and ensure the evidence is then created; OR
   2. Complete one or more of the case studies to ensure you have three files which will evidence the requirements.
5. Labelling the evidence – step by step:
   1. Assemble a complete file with all the evidence required in the order they would occur (or as close to as possible). Existing client files will need to be photo-copied or scanned first. Please upload your statement of advice in MS Word format including your diary note, lender’s checklist and loan application form.
   2. Number each page in order by writing in a circle at the top right of each page.
   3. Then, work through the evidence checklist and find where the evidence can be found in your file.
   4. Once you have identified the evidence, type the page number or numbers where your evidence can be found, into the evidence checklist. Use the right-hand and unshaded columns for this. The assessor will now be able to scroll through easily and locate your evidence.
   5. Copies of some evidence like lender’s terms and conditions only need to have the first page provided.
6. Uploading the client files and evidence for assignment:
   

Once the above procedure is completed, you need to upload your files:

1. Sort your files into three folders named, ‘Client 1’, ‘Client 2’, and ‘Review client’.
2. If there is additional evidence/documentation you wish to provide, please create a file called ‘Other’ and include it in your folder with your client files.
3. Once you have your three folders ready, zip all the folders and upload to your assignment submission portal on Radar.
4. Upload this document with the completed evidence checklist and submit.

If you do not have your own templates, the following templates are located under ‘Assignment resources/templates’ on Radar:

• Statement of advice (this needs to be personalised to each client).
• Loan application form, including Lender’s checklist, authority and declaration.
• Adviser diary note.
• Sale and purchase agreement.
• Disclosure statement.
• File note.
• Fact find need analysis.
• Email trail.
• Any other supporting documents.
• UMI calculation.