Student Name Student Number
Unit Code/s & Name/s FNSINC601 Apply Economic Principles to Work in the Financial Services Industry
Assessment Type ? Case Study ? Assignment ? Project ? Other (specify)
Assessment Name Assessment 3
Assessment Due Date End of Week 12 Assessment Received Date
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Instructions to Student General Instructions:
A work health and safety check of the assessment environment is to be conducted by the student prior to the assessment and any hazards addressed appropriately.
Access to the textbook, learner guide and any notes is allowed.
It is not a timed assessment and may be completed in one sitting or over a period of time. If completed progressively do not submit this assessment until you have completed and are able to submit your answers to all thirteen (13) parts of the case study.
Read each part of the case study carefully and follow the instructions for each task.
Use the space provided in this assessment paper for your answers.
Students should save their work regularly and use a logical file name, e.g. FNSINC601_Assess3_StudentName_StudentNumber.doc.
Number of Attempts:
You will receive two (2) attempts for this assessment. Should your 1st attempt be not satisfactory, your teacher will discuss the relevant questions with you and will arrange a 2nd attempt to be scheduled. Should your 2nd attempt not be successful, or you fail to undertake the 2nd attempt, you will be deemed “not satisfactory” for this assessment item. Only one re-assessment attempt may be granted for each assessment item.
Assessment Criteria:
To achieve a satisfactory result, your assessor will be looking for your ability to demonstrate the following key skills/tasks/knowledge to industry standard:
• research economic trends, evaluate impacts, and access and interpret corporate regulations
• analyse and apply a range of financial modelling techniques and tools
• reflect on and review own performance in applying knowledge of economic principles in day-to-day work functions.
Evidence Required to be Submitted and Method of Submission The completed assessment paper is to be submitted online via Connect as either a Word document or a PDF document.
Instructions to Assessor Work, Health and Safety: A work health and safety check of the assessment environment is to be conducted by the student prior to the assessment and any hazards addressed appropriately.
Examination Range and Conditions: This is an open book assessment.
Materials to be supplied: This assessment.
Assessment Context and Description (if required) In this assessment, you will complete a comprehensive case study to apply economic principles to a firm operating the Australian financial services industry.
Note to Student An Assessment Mapping Matrix is available from your teacher upon request. The mapping matrix shows how the knowledge and skills that you are being asked to demonstrate align to the requirements of each Unit of Competency.

The following case study has been prepared to assess your ability to meet specific performance criteria required in the unit FNSINC601 Apply economic principles to work in the financial services industry.
Specifically this case study will assess skills and outcomes associated with providing financial information.
To indicate that you have achieved the elements of competency listed in this unit you must evidence the following skills and knowledge:
Skills requirements include:
• communication skills to:
• determine and confirm work requirements, using questioning and active listening as required
• liaise with others, share information, listen and understand
• use language and concepts appropriate to cultural differences
• well-developed research skills such as:
• accessing and managing information
• interpreting documentation
• coordinating tasks
• highly developed numeracy and IT skills including:
• identifying and using statistical models
• accessing and using identifying and using applicable knowledge systems, spreadsheets and databases
• using internet information
• recording, gathering and consolidating financial information
• problem solving skills to identify any issues that have the potential to impact on work outcomes and to develop options to resolve these issues when they arise
• organisational skills, including the ability to plan and sequence work
Required knowledge:
• economic theories and valuation of assets
• financial modelling techniques and tools
• industry/company financial markets, products and services
• relevant legislation and statutory requirements and industry codes of practice
• techniques and tools for evaluation and interpretation of research data
• the economic and political climate relating to the financial industry

Case study
Background
The Financial Services Firm
The firm of Bracken Ridge Financial Services is a prominent financial services firm based in Bracken Ridge, Brisbane.
The firm provides financial advice for investors.
You are a member of the financial management team and specialised in giving financial advice to the potential investors entering into a new market.
The client
The Australian market is dominated by oligopolies in retailing, mining, car rental, banks, insurance, fast foods, petrol and so on. Government regulatory bodies such as the ACCC are trying to crack down the price collusion between the members of oligopolies.
Mr Entrepreneur is the Managing Director of North Point Ltd. The management of the company is planning to enter a sector of the financial services market where they can gain at least twenty per cent of the market share. Mr Entrepreneur has heard about monopolies, duopolies and oligopolies but wants to understand fully these markets and, most importantly, he wants to know the role of government and regulatory bodies.

The Brief
1. Read the question.
2. Record your response to the question in the text box below.
Your task in this case study is to:
a. Select any large company that is currently operating in the Australian financial services industry such as a bank or building society, insurance company, accounting firm, mortgage broker, stock broker or financial advisor and enjoying a large share of the market.
b. Prepare a written report including the following:
1. Briefly outline the industry sector/financial market in which your chosen company operates. What are its main products or services?
2. How would you describe the company you have chosen – a monopoly, oligopoly, duopoly, confusopoly or something else? Explain each type of market structure and give reasons for your answer.
3. Outline briefly the key features of common economic theories that relate to the financial services industry in general, or to your chosen market sector in particular.
4. Describe briefly the current economic and political climate relating to the financial services industry sector that your chosen company operates in.
5. Describe the changes taking place in the market structure in this industry, including (if applicable) changes such as nature of products, mobility, freedom of entry and exit, price control, etc.
6. Explain the effect of interest rates and foreign exchange rates on the competitiveness of the company you have selected.
7. What new entrants (if any) there have been in the industry in recent years that you are aware of.
8. Are there other products in the current market that are close substitutes for the ones provided by your chosen company, and if so, list them and explain how will this affect the operations of an oligopolistic company?
9. What are the consequences for small business when a large company enters into the industry?
10. Briefly explain the roles and objectives of the three major financial services industry regulators that come under the banner of the Council of Financial Regulators in Australia.
11. Describe briefly the key features of relevant legislation, statutory requirements and industry codes of practice that would affect your chosen company’s operations.
12. Identify and briefly describe techniques and tools for evaluation and interpretation of research data.
13. Any other matters you consider relevant to the industry that you have selected.