1.

You have recently been appointed as a trainee financial adviser for a large financial institution. Your manager asks you to run a training session for the financial advisers. She asks you to lead the discussion and answer the following questions.

a What role does alternative dispute resolution play in resolving disputes between clients and licensees in the investment industry? (10 marks)

b In relation to companies, what is meant by the doctrine of separation of powers? How does this doctrine affect shareholders/investors? Support your answer with examples and relevant legislation and/or case law. (10 marks)

c Explain the purpose of the 'Superannuation Guarantee Contribution system'? How does this fit into government policy? (5 marks) Required Using your own words, answer the questions above. Support your analysis with relevant legislation and /or case law.

2.

Wally runs a financial planning business from a vintage caravan at the back of his grandmother's house in South Melbourne. Abdul saw Wally's street signage when he was jogging past. The sign said, "Wally's Expert Financial Services. My goal is to make you rich." Abdul has $80,000 to invest and decides to approach Wally for investment advice. Wally meets with Abdul in the caravan he uses as an "office". They have a hot cup of tea together and discuss Abul's investment goals. Abdul is charmed by Wally's friendly and personable manner. Wally convinces Abdul to invest all his $80,000 with a company called Dodgy Inc Pty Ltd. Three weeks later Abdul's cousin, who is an ex-client of Wally's, informs Abdul that Wally is totally untrustworthy, and that ASIC has banned him from holding an Australian Financial Services Licence for 5 years. Abdul is now very concerned that he will lose his $80,000 and seeks your urgent advice. Required Advise Abdul if he has any statutory remedies against Wally. Support your advice with relevant sections of the Corporations Act 2001 (Cth).

3.

Norman is 45 and has a successful vegan bakery in a trendy suburban shopping centre. He has three part time workers who help him out on weekends and his partner Garry who looks after the accounts. Norman's customer base is broadening because he manages the business well and his customers love his delicious savoury pastries. Norman's income is increasing, but so is his tax. Connie, one of his regular customers, tells Norman that he would make more money if he incorporated his business. She says he would be protected by a 'corporate veil'; and that the law wouldn't be able to touch him in terms of financial liability. Connie further advises Norman that the new incorporated business could directly purchase commercial real estate in the trendy shopping strip to expand its operations. This sounds too good to be true. Please advise Norman whether Connie is correct? Explain to Norman whether Connie's advice is accurate. What is direct investment in real estate? Is this something that would be beneficial for Norman? Support your answer with relevant legislation and/or case law. Please ensure your advice is stated in clear and simple terms. Norman is a fantastic baker but is not a legal expert.