Case Study Embolden clients: Imran and Kareena Kapur Nadine has not been well lately and has just been diagnosed with early-stage breast cancer. Her doctors have recommended she take at least six months off from work to concentrate on her treatment plan, which they are in the process of finalising. As Nadine will be away from the office for some time, she asks you to provide advice for her existing clients. Your first meeting is with Nadine's clients, Imran and Kareena Kapur. You will be meeting them for the first time and Nadine has told you they are important clients because they often recommend family, friends and their own clients (from their business) to the practice. Imran and Kareena operate a successful legal practice where they manage the estate planning affairs for many clients. There has been a longstanding referral relationship between Nadine and them, which sees them share many clients. There remains frequent cross-referral of clients between Nadine and Imran and Kareena; however, this arrangement has been altered due to the introduction of the Financial Planners and Advisers Code of Ethics 2019. Where in the past, Nadine simply paid them a referral fee, she now adjusts her advice fees (up or down) to Imran and Kareena, in lieu of referral payments. Imran and Kareena's file shows that a Statement of Advice was issued three years ago. The client notes state that Nadine recommended Imran and Kareena establish an SMSF, and this has now been in place for nearly three years. The file notes also state they have rolled over superannuation from their previous superannuation funds with AustralianSuper and Aware Super. Both funds were previously invested in the 'balanced' options. As lawyers, Imran and Kareena undertake a lot of the SMSF work themselves. As you read through their file, it appears they have little knowledge of investing. The only assets currently in the SMSF are a $1.4 million term deposit with the CBA and the SMSF administration account with about $60,000. You review their goals and objectives listed in their file and note that their main goals are to build wealth for their retirement and help their adult children. After introducing yourself to Imran and Kareena, you explain that as you are not fully aware of their financial situation, and as part of the review process, it would be worthwhile revisiting their current situation, goals and objectives. Part-way through the meeting, Imran takes a phone call and states he will need to leave immediately to take care of some urgent business, and Kareena can update him later on what was discussed. However, as he leaves, he says that he just wants you to invest the money in the way you think is appropriate for them as 'Nadine does this all the time'. He adds, 'we know how the process works, so we don't really need to go through all the paperwork'.

Question - Explain three (3) potential breaches of the Financial Planners and Advisers Code of Ethics 2019 that may arise from Nadine's actions of adjusting advice fees as a result of cross-referrals with Imran and Kareena.