BFA508 Introduction to Financial Planning - Case Study Questions

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This assignment is designed to demonstrate your understanding of these areas:

  1. Explain the advisory functions of financial
  2. Describe the Australian legal framework within which financial advisers
  3. Apply the steps involved in the financial planning process to client
  4. Describe the process of giving financial
  5. Identify and explain ethical considerations and professional conduct requirements as per Financial Planners and Advisers Code of Ethics 2019 (Code of Ethics).
  6. Additional research skills outside course materials/delivery.

Required:

In your answer you should consider the following:

  1. Ensure that you answer all the requirements of the
  2. This assignment consists of Two (2)
  3. This assignment is worth 25% of your total semester

For fairness and equity to other students we will only provide some guidance to direct questions on the assignment (or other assessments), not review partially completed work prior to submission and avoid tutoring students to a solution.

Part 1

Veronica Driessen is a principal of an award-winning advising firm. A new client, Faisal decides to seek her advice. Upon learning that Faisal is a member of ACME Superannuation Fund, Veronica advises Faisal that he should instead open a self- managed superannuation fund (SMSF) and move money into Driessen Managed Funds. She does not look into other alternatives, and she does not outline the conflict inherent in suggesting her own managed funds as a suitable investment for Faisal.

While Veronica is insistent that Faisal implement her advice, Faisal is unsure and wants to take some time to deliberate on the matter. While waiting for Faisal’s decision, Veronica encourages a co-worker, Neville, to call ACME and pretend to be Faisal as she has Faisal’s membership number. While Neville is unsure about the ethics of making this call, Veronica insists that she is doing this for Faisal’s best interests, as the sooner that he is able to move his funds into an SMSF the better.

Neville makes the call to ACME, impersonating Faisal.

In the meantime, unable to shake his wariness over implementing Veronica’s advice, Faisal seeks another opinion. He is told by a second adviser that he should, under no circumstances, implement Tracey’s advice due to a deferred retirement benefit payment from ACME which would see him lose $500,000.

Required (1,000 words)

Question 1

Has Veronica acted in the best interests of her client? Why or why not? In your answer, refer to the FASEA Code of Ethics and values.

Question 2

Discuss Veronica’s decision to have a co-worker impersonate Faisal and acquire information about his ACME account without his consent. Which standard(s) of the FASEA Code of Ethics does this action breach?

Question 3

What would Veronica need to do to address the conflict of interest inherent in advising that Faisal invest in her own managed funds account?

[Marks for Part One = 15 marks]

Part Two

For this case study you will assume you are working as a financial adviser either in your own business or as part of a larger organisation.

You will be required to produce a Financial Services Introduction Sheet for a new staff member who is commencing work at your organisation in a financial support role, not as an adviser. This new person has little understanding and/or knowledge of the Financial Planning industry. The Introduction Sheet has 3 sections.

Required

Your Introduction should contain the following sections/information:

  • Present a summary of the key economic and political factors (minimum 2) currently impacting or having the potential to impact on the financial services (250-350 words) (3 marks)

You should include reference to (as a minimum):

  • interest rates
  • exchange rates
  • inflation
  • government monetary and fiscal policies
  • Present a summary of financial advisory functions including: (250-350 words)

(3 marks)

  • the role of the authorised representative/adviser
  • participants in the advisory services market, including those providing advice covering:
    • Derivatives
    • Life Insurance
    • Securities
    • Managed Investments
  • roles played by intermediaries and issuers
  • trustees’ appointment, duties and responsibilities
  • Present a summary of the types of financial investment products available including: (250-350 words) (4 marks)
    • the concept of a financial product
    • general definition
    • specific inclusions and exclusions
    • types of financial investment products

[Total for Part Two = 10 marks]

Further notes for assignment completion. Please read these notes thoroughly. It is your responsibility to meet the requirements.

  1. Unless otherwise advised in writing, all work submitted for assessment must be completed by the student alone. While discussion of the topic is encouraged, no student is permitted to use any work of any other person and any material used from any publication must be acknowledged in full.
  2. Any applications for extensions must be received by the unit coordinator before the due dates. Such applications will be treated on their merits. Work and family commitments do not normally constitute sufficient reason for the granting of
  3. Bibliographies are required for You should acknowledge all references you used to assist you in completing the assignment. This includes your textbooks and your study notes.

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