1.Which of the following statements isTRUEin relation to customer's duty under the common law?

a.

Duty to advise the bank of irregularities relating to their account when they become aware of them

b.

Duty to take reasonable care framing mandate

c.

Duty to not facilitate fraud

d.

All of the above.

Clear my choice

Question2

Which of the following isNOTan exception to the duty of confidentiality inTournier v National Provincial and Union Bank of England?

Select one:

a.

The customer consents to the disclosure.

b.

Disclosure allowed after the customer closes their account.

c.

Disclosure by compulsion of the law.

d.

The interests of the bank require disclosure.

Question 3

Harry is the compliance officer at Ninjia Bank and he is currently preparing for a training program for his colleagues in relation to the GFC, given the problems unfolded by the Banking Royal Commission and concerns about the recent economic downturn in Australia. Please help him by identifying which of the following isNOT TRUE:

Select one:

a.

Although Australia fared relatively well in the GFC, there were still reforms in its banking and financial regime after the GFC. For instance, credit rating agencies were required to hold an Australian Financial Services Licence from January 2010.

b.

National Consumer Credit Protection Act 2009(Cth) was introduced in the aftermath of the GFC to tighten up lending practices and address issues like no-doc/low-doc loans.

c.

The so-called "FoFA" reform was adopted to further improve the quality of the financial advice in Australia given the GFC and domestic financial scandals.

d.

Commissioner Hayne urged the government to keep the safe harbour provision under s 961 (2)(b) of theCorporations Act2001 (Cth).

e.

Commissioner Hayne recommended the government to repeal grand-fathering of conflicted remuneration.

Question 4

Read and select which of the following descriptions isNOT TRUE

a.

Lily is operating a website named 'Your Investor Mate' to provide information about various financial products. There is no recommendations or opinions in relation to the products on the website. Lily is confident that no licence is required for her website.

b.

Matt just graduated from Monash with double majors in computer science and banking/finance. He recently introduced a new app called "SmartInv" to recommend clients invest in a limited number of model portfolios. The portfolios have been created based on factors such as asset class, the allocation of growth assets, the rates of risk and return and the investment horizon. Matt used big data and algorithms to provide qualitative commentary on various stocks within the portfolios; however, he decided to keep this system simple and not to ask clients specific questions about their personal financial situation, objectives, etc. In doing so, Matt believe that no license is required for his business.

c.

Ninjia is a start-up fintech company that provides digital advice. Its business model is as follows: its system identifies a range of investment target; it then determines the client's investment profile by asking the client specific questions about their financial situation and goals. Ninjia's algorithm automatically recommends to the client an investment strategy based on their personal profile, and a Statement of Advice (SOA) is generated and provided. Ninjia's CEO, Shohei Ohtani is of the view that, while this business model is promising, they will be subject to not only the licensing requirement but also other obligations such as the best interests duty and related obligations under theCorporations Act(Cth).

d.

Australia's Corporations Act has taken the so-called "technology neutral" approach towards robo (digital) advice.