Big Money Investments Ltd (Big Money) is a listed public company and has recently been issued a new Australian Financial Services Licensee (AFSL) by ASIC.

Paul, Ivy and Johan are the directors of Big Money and are so excited to have applied for and been successful in obtaining the license to operate as a financial services provider.

Paul is the Finance Manager and along with Fred, an employee of Big Money, will provide personal financial product advice under this licence. Services will be provided to retail clients only.

Ivy will be in charge of the business operations. Johan is the Managing Director.

The AFSL has authorisations to provide financial product advice and deal in a financial product in relation to the following financial products:

Basic deposit

Securities

Managed investments

Superannuation

Margin Lending

The directors have decided that Big Money will charge clients an hourly rate of $330 (GST inclusive) for any advice provided, in addition to a 1% fee on any funds under advice that they manage.

Ivy has also established a referral arrangement with a nearby accounting practice Nimble Numbers Pty Ltd (Numbers).The arrangement includes the payment to Numbers of 15% of any revenue earned by Big Money from clients referred by Nimble in the first year.

Keith, who is a friend of Fred's, has asked Fred to provide him with advice in relation to some life insurance coverage and retirement planning, now that Keith is just a few years away from retiring. Additionally, Keith wants Fred advice on the selection of a suitable fund/s for him to invest $15,000 for each of his grandchildren as a reward for completing their university studies.

The directors have a few queries about the new arrangements and what their obligations are, they have asked you to advise them on the following matters:

a)As managers of the license, what are their general and specific duties and based on the facts above, do they have any ongoing obligations/ requirements that they need to meet?

b)In relation to their employee Fred, what type of supervision and monitoring processes should they consider? Use CA and RG's in support.

c)Paul knows that because the company is providing financial advice to retail clients that he needs to provide clients with a Financial Services Guide.Advise Paul on the content requirements and when the guide needs to be distributed.Ensure you note any specific information from the facts provided above that may impact on the content of Big Money's guide.

d)Paul and Fred want you to provide them with:

i)an overview of the advisory process

ii)information in respect to the best interest's duty and how they can demonstrate that they have met this duty as well as the safe harbour.Ensure that your response takes into consideration the facts noted above.