Reference no: EM132343533

Question 1:

Research the amount of stamp duty that would be payable on a house sold in two different Australian states or territories. Assume the property was sold last week at auction for $730,000.

As calculated on Realestate.com.au, stamp duty for different states and territories on a property sold for $730,000 is as follows:

- TAS  $28,035
- VIC   $38,870
- NSW $28,340
- ACT  $23,794
- QLD  $18,700
- NT    $36,135
- SA    $33,980
- WA   $28,711

Calculations done based on an owner occupied residence and not as a first home buyer.

Question 2:

Is the industry becoming over regulated and too bureaucratic? Develop a response in relation to complaints handling processes.

Question 3:

You phone and instruct the stock broker to transfer stocks on your behalf. The stock broker provides you with advice relating to your instruction. You thank the stock broker and request a record of that advice. Two weeks later you are still waiting for a copy of the advice. You phone to complain and you are told that such documents are not issued. You check the stock broker FSG. It clearly states that you are entitled to make that request. In what way is the bank non-compliant?

Question 4:

Your client wants to know more about the local and international markets that are licensed to operate in Australia and the products that they sell. Name one online source you would use to find this information. Then access a PDS for a product you would recommend. Analyse the relevant details in the PDS, namely the terms and conditions. Consider this analysis from the perspective that you want to overcome any concerns your client may have.

Question 5:

Warren, who has just separated from his wife, sends you an email with his new contact details. Concerned about how volatile the market seems to be, he also asks to be advised immediately of any changes likely to impact negatively upon his shares. Before signing off, he confirms that he has an appointment with you in 6 weeks' time to review his investment strategies. He asks to be contacted via email as he will be overseas for the next 5 weeks.

You respond to Warren's email by updating his contact details in your system. Unfortunately, you are unaware that your computer has a virus and that the new email address did not save properly.

A week later, the market shifts. As instructed, you send Warren an email advising of the changes. Ivy, Warren's estranged wife, opens the email that you inadvertently sent to their joint email address. She is delighted by the prospect that Warren stands to lose a substantial amount of his precious money and deletes the email with a sinister smirk. You take no further action because you do not hear back from Warren.

Warren returns to Australia to discover his losses. He phones you immediately. He is furious that Ivy had access to his financial matters and that he is holding onto worthless shares. He wants to be compensated.

a) Access the internet and choose a product that has dropped its value in the last fortnight. Use the actual facts to write your email to Warren advising of the changes to the market.

b) Identify aspects of your dealings that may have breached organisational policies and/or guidelines, confidentiality requirements, relevant legislation or industry codes of practice.

c) What do you need to do in this situation to respond professionally and ethically?

d) Knowing that you have an angry client, how are you going to prepare for the meeting to review Warren's strategies in light of this conflict?

Case Study Information:

Scenario

You are a financial adviser with ABC Financial Planning Pty Ltd. Two clients have made an appointment with you after being referred by one of their dearly departed friends, Warren, who until recently was also a client of yours.

Facts obtained during the initial interview:
• Robert (62) and Rebecca (56) are married with three independent adult children.
• Robert and Rebecca live in a modest flat around the corner from Rebecca's father in Bundoora, Victoria.
• Rebecca's father Bert, a non-native English speaker, is unwell. This has prompted her to sort out his estate planning affairs for him.
• Bert is a widower and is in need of constant care and support. Bert's house is worth $490,000 and he does not want to move to an aged care facility.
• Bert's other assets include a 15 year old Toyota Corolla worth an estimated $500, goods and chattels worth $3,600, cash in his bank of $7,900 and his deceased wife's jewellery valued at $6,700.
• Rebecca has a younger sister by the name of Bethany. Bethany has a successful career as an engineer and lives in Perth with her husband Rex, a solicitor and their only child Lucas, who is living at home while studying medicine.
• Bert last year wrote a cheque to the amount of $150,000 to Bethany in order to help her and her husband upgrade to a larger house.
• Rebecca asked what he had communicated to Bethany when he sent her the cheque. Bert said he had not written anything specific because she knew, or at least he thought she knew, that it was a loan. Bethany has quite a strong personality and Bert did not want to upset her.
• Bert felt that the best solution maybe to pass on all of his assets to his grandchildren.

Case Study Question 1:

Explain to Bert the difference between comprehensive financial advice and stand-alone estate planning advice. Which do you think would best suit Bert?

Case Study Question 2:
Bert decides to take comprehensive financial advice including the services of the in-house solicitor who deals with estate planning issues. Brief the solicitor.

Case Study Question 3:
Which other issues (apart from the estate planning issues discussed in the previous question) would you address in an ongoing manner to meet Bert's special needs?

Case Study Question 4:
Would you make any other referrals in this situation? Explain.

Attachment:- ADLM Questions.rar