MUST use the IRAC method (Issue, Rules, Application, Conclusion) to answer all problem scenario question

Jackson Phillips has recently retired after a career as a mid-level manager in the Commonwealth Public Service. As a contributor to his superannuation fund over all of his working life, his retirement payout was substantial, in the vicinity of $800,000. Jackson has long had an amateur interest in investments, and is impressed by the recent ASX listing of Xcaliber Ltd, described as being a manufacturer of quality sporting equipment based in Australia, for use by Australians. He recognises that this is a volatile and uncertain industry and so seeks expert advice before making any financial investment decisions. He approaches Martin Sims, the Principal of Sims & Associates Pty Ltd ('S&A'), a reputable Managed Investment Fund, for advice on the viability of Xcaliber. Jackson completes his due diligence by confirming Martin's qualifications and licence, as a Financial Advisor, with ASIC. Three weeks later he receives an impressively detailed overview and analysis of Xcaliber from S&A in a professionally structured and presented report. The report determines that the company has a stable and efficient management structure operating to a sustainable business plan that covers the next decade. Citing an intense forensic scrutiny of the financial records of the operation by S&A analysts, Martin Sims concludes that Xcaliber is in an excellent financial position, without unreasonable exposure to risk. He advises Jackson to proceed with investing in Xcaliber as it shows excellent prospects of high returns. Based on the glowing commendation in the S&A report, Jackson invests the majority of hs funds in Xcaliber Ltd. For some months, he sees an excellent return on his investment, far exceeding his expectations. About six months after he invests, however, the company takes a severe downturn in share price. Whilst he is concerned about his losses, Jackson is realistic enough to recognise that this is simply an inherent risk in investing, and he decides to wait to see if the market turns around. Two months later, some devastating news comes to his attention. The Chief Financial Officer ('CFO') of Xcaliber is arrested by ASIC investigators, and charged with fraud and embezzlement over activity going back over the last 18 months. Of special interest to Jackson is the statement in the indictment that the mishandling of company money was amateurish and was readily apparent by a routine forensic audit by any competent accountant. The ASIC investigation into Xcaliber was also a reasonably well-known secret within the financial sector, and any cursory investigation into the company should have uncovered major cause for concern. Jackson has lost over half a million dollars of his retirement funds that he claims is the result of the negligent advice that he received from Martin Sims and S&A

Advise Jackson if there is any cause of action he can take against Martin Sims or his company to try to recover his losses. Remember: Your arguments must all be fully supported with relevant statute or case law.