A margin or investment loan is a form of gearing that lets clients borrow money to invest in approved shares or managed funds, using their existing cash, shares or managed funds as security. So, how does margin lending work?
Investigate who uses margin loans and why, the wiles of portfolio monitoring and margin calls, regulation of margin lending, and other ways to fund investing. Through our case study, explore the value of risk profiling and how to make margin lending recommendations to suit particular types of clients.
- Analyse what margin lending is, and why and how it works
- Calculate amounts required to meet margin call obligations
- Explain how margin lending regulation is covered under licensing obligations
- Evaluate alternatives to margin loans
- Discuss the importance of effective risk profiling when assessing client suitability for a margin loan
- Recommend an appropriate margin lending strategy for a given client.
Looking for a RG146 CPD solution? This course also forms part of our complete online CPD solution, , which enables financial participants and organisations to meet ASICs RG 146 ongoing training requirements.