Unit of competency details

FNSFMB402 - Identify client needs for broking services (Release 1)


Usage recommendation:
Supersedes and is equivalent to FNSFMB402A - Provide finance and mortgage broking servicesUpdated to meet Standards for Training Packages Title changed to better reflect unit. Minor edits to clarify performance criteria. 24/Mar/2015
Is superseded by FNSFMB412 - Identify client needs and present broking options 01/Feb/2021

ReleaseRelease date
1 1 (this release) 25/Mar/2015


SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 081103 Insurance And Actuarial Studies  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 081103 Insurance And Actuarial Studies  30/Jul/2015 
The content being displayed has been produced by a third party, while all attempts have been made to make this content as accessible as possible it cannot be guaranteed. If you are encountering issues following the content on this page please consider downloading the content in its original form

Unit of competency

Modification History



Release 1

This version first released with FNS Financial Services Training Package Version 1.0.


This unit describes the skills and knowledge required to determine clients’ finance broking requirements and explain capabilities, legal and compliance related issues so clients are aware of their rights.

It applies to individuals who are skilled at building relationships and who use specialised knowledge and analytical skills to provide advice and a range of services for clients.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

Unit Sector

Finance/mortgage broking

Elements and Performance Criteria



Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Educate clients and build rapport

1.1 Explain the finance and mortgage broking process to clients in a clear and unambiguous way, and clarify the background, credentials and role of the broker to build rapport

1.2 Present the services, values and capacity of the organisation to clients and confirm client understanding of fees and charges

1.3 Identify and confirm procedures for complaints handling and resolution with clients

2. Determine clients’ existing financial situation

2.1 Ask clients to disclose relevant facts to begin determining their personal and financial situation and establish clients’ current income, expenditure and liabilities

2.2 Determine current investment and assets position of clients and conduct initial analysis of clients’ financial position based on extent of client disclosure

3. Determine client goals and priorities with respect to broking services

3.1 Ask clients to clarify their product expectations

3.2 Comprehensively explore differences in what products provide and what clients expect, and respond to client concerns, if any, promptly and appropriately

3.3 Establish and confirm client priorities

3.4 Seek specialist advice where necessary or refer clients to appropriate sources where required advice or services cannot be provided

4. Prepare necessary documentation follow up

4.1 Document and check all relevant client facts, information, financial and personal histories and manage confidentially in accordance with organisational policy and guidelines, and relevant legislation and industry codes of practice

4.2 Create or update client records where necessary in a clear and concise format, and file securely in a format and location readily accessible to other appropriate advisers

Foundation Skills

This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.


Performance Criteria 



1.3, 2.2, 3.3, 3.4, 4.1

  • Interprets and analyses complex written information to determine requirements


1.1-1.3, 2.1, 3.1-3.3, 4.1, 4.2

  • Accurately records information using logical structure and clear and concise formats
  • Completes documentation using correct language, terminology and writing mechanics

Oral Communication

1.1-1.3, 2.1, 3.1-3.3

  • Participates in verbal exchanges using active listening and questioning to elicit information and respond to queries and concerns
  • Uses tone, pace and gestures appropriate for audience and purpose


1.2, 2.1, 2.2, 4.1

  • Analyses numerical information quickly and accurately, and performs detailed mathematical calculations and estimations of financial data

Navigate the world of work

3.4, 4.1

  • Understands boundaries of own role and seeks assistance where required
  • Takes responsibility for adherence to legal/regulatory responsibilities relevant to own work

Interact with others

1.1-1.3, 2.1, 3.1-3.4

  • Selects and uses appropriate conventions and protocols when conferring with clients, co-workers and experts on financial and administrative matters
  • Recognises the importance of building rapport to establish and maintain effective working relationships
  • Adapts personal communication style to show respect for the values, beliefs and cultural expectations of others

Get the work done

2.1, 2.2, 3.2, 4.1, 4.2

  • Takes responsibility for planning, sequencing and prioritising tasks and own workload for efficiency and effective outcomes
  • Systematically gathers and analyses all relevant information and evaluates options to make appropriate decisions
  • Uses digital technologies and systems to locate information, enter data and present information
  • Applies an intuitive understanding of context to identify relevant information and risks

Unit Mapping Information

Code and title  

current version 

Code and title 

previous version 


Equivalence status 

FNSFMB402 Identify client needs for broking services

FNSFMB402A Provide finance and mortgage broking services

Updated to meet Standards for Training Packages

Title change to better reflect unit

Minor edits to clarify performance criteria

Equivalent unit


Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe


Assessment requirements

Modification History



Release 1

This version first released with FNS Financial Services Training Package Version 1.0.

Performance Evidence

Evidence of the ability to:

  • use effective communication skills to build rapport with clients and clearly explain information relating to finance and broking processes and products
  • document and analyse clients’ financial position according to organisational and industry requirements
  • comply with company policy and relevant legislation in regards to disclosure so clients can make informed decisions.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

To complete the unit requirements safely and effectively, the individual must:

  • explain basic financial and accounting terms and concepts relating directly to mortgage or finance broking including:
  • variable and fixed rate interest rates
  • types of mortgage accounts
  • procedures and principles of deposit bonds
  • financial records relating to different ownership models
  • describe key features of complaint handling and resolution processes, and roles of the various alternative disputes resolution schemes and services
  • explain credit and credit reporting services
  • describe key features of the economic environment and business cycle, financial markets and the roles of industry participants, interest rates, exchange rates and inflation
  • identify and describe key features of the legal environment and relevant legislation affecting finance and mortgage broking services in regards to:
  • disclosure
  • privacy
  • industry codes of practice
  • National Credit Code
  • describe the key features of lender’s mortgage insurance
  • explain loan transaction terminology and definitions of the parties involved including:
  • lender and borrower
  • lessor and lessee
  • mortgagee and mortgagor
  • explain real estate terms and concepts including:
  • land titles and searches
  • strata title versus company title
  • multiple securities
  • securing second mortgages
  • subdivisions of title
  • partial discharge of mortgage where multiple securities are held by lender
  • categorise and explain types of fees and charges.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the finance and mortgage broking field of work and include access to:

  • office equipment, technology, software and consumables
  • finance and mortgage product information
  • relevant software system and data.

Assessors must satisfy NVR/AQTF assessor requirements.


Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe