QUESTION

55 year-old Jane is the proprietor of a little catering company that is located on the suburbs of Sydney. Approximately ten people are employed there. She lives with her ailing mother, who is in the latter stage of Alzheimer's disease, therefore she only works part-time. Anyone who provides care for people with Alzheimer's disease must fulfill a number of obligations. But because Alzheimer's disease causes gradual and always distinct harm, the responsibilities of a caretaker in these kinds of circumstances can be rather considerable. Not only is it required of the caregiver to offer the elderly person with a wide range of services, but the caregiver also has to deal with a wide range of difficulties. This may be especially true for those who provide care for members of their own families. Jane is dealing with a significant amount of pressure and is depressed as a result. Even though there is a nurse who visits Jane's mother virtually every day, Jane serves as her mother's primary caregiver despite the fact that Jane struggles with her own mental health. Her obligations as a caregiver add to the stress she was already experiencing before they began. However, she has been taking her prescriptions in a conscientious manner and has been able to successfully mitigate the unfavorable effects of her disease to the greatest extent that she is able to.Janes grandparents passed away and she saved up $180,000 from the proceeds of selling their house. Jane did not want to spend the money recognizing that there could be a good opportunity to invest to guarantee some steady returns to help her save up for her retirement. Also, she was expecting that the returns could help her to hire a full-time caretaker to look after her ailing mother.

Keeping this information in mind, she reached out to Peter, a financial consultant who was also an authorized agent of Steven Pty Ltd, and she went to visit him. Jane explained that she wants to increase her wealth prior to her retirement and was interested in investing in low-risk financial products because she did not want to lose her savings due to the highly volatile financial markets. Specifically, Jane did not want to lose her savings due to the fact that the stock market was going through a bear market. Jane also noted that she is a member of the superannuation fund that is run by Sunny SuperFund Ltd, and she inquired as to whether or not it would be possible for Peter to move her membership to the other superannuation fund that is run by ACB Fund Ltd. She stated that one of her goals was to improve her returns while simultaneously lowering the costs she was required to pay. In addition, she inquired about the possibility of acquiring motor vehicle insurance for the vans used by her company, Catering Pty Ltd. Peter presented her with a Financial Services Guide while they were having their meeting.

After much consideration, Jane finally agreed to terms with the licensee and signed a contract. Peter inquired about Jane's salary, debts, and other aspects of her financial condition, among other things. Jane said that she was doing OK despite the fact that she owed $30,000 on her auto loan and $3,000 on her credit card debt. She informed Peter about the immense stress she was under as a result of her responsibilities to care for her mother, who was failing rapidly. She worked part-time. Peter was making some notes on a piece of paper. Jane was informed, when he had finished listening to her, of the many investment opportunities that may be open to her. But before he can propose them, he would want to present her with one alternative, which is to make an investment in Greentechno Ltd., since it is one of her choices. According to Peter's statement, the rise in profit that might be expected from their shares during this fiscal year is at least thirty percent. Peter stated that this was an excellent opportunity to make substantial profits and to enjoy a secure retirement in the years to come. This investment opportunity left an impression on Jane, and she decided to put her money into Greentechno Ltd. after taking his counsel. She was also given information for transferring her superannuation from Sunny SuperFund Ltd to another fund and investing in Incentivised Management Systems Ltd, which is a related firm of Steven Pty Ltd. (IMS). During the course of their conversation, Peter utilized language and pressure methods to stress the point that the enterprises were as stable as a rock and as secure as a bank. He emphasized that these investments were sound, and according to his findings, both their shares and returns will be rapidly increasing in the near future. 15 days after Peter and Jane's initial conversation, Peter emailed Jane a Statement of Advice.

A couple of months later, Greentechno was placed in liquidation. Jane will likely lose all her investments and she is devastated. She attempted to contact the licensee and complain but to no avail.

Evidence has revealed the following:

• Putting money into greentechno was a risky business move. When the licensee and its authorized agents recommended the financial products of the company, they were all eligible to receive commissions. Peter did not address the possibility that the customer may lose her money and assets, which may have an impact on the customer's potential to grow her fortune. On the other hand, this particular investment opportunity was framed as one that was attractive and limited in scope. There were no commissions that Jane was aware of.
• IMS Ltd. offers soft dollar rewards, such as the payment of a sizeable sponsorship fee to the licensee and authorized agents in exchange for the presentation of information on the company's various financial products. Other soft dollar advantages include invitations to attend abroad conferences, flights in business class, accommodations at five-star hotels, and networking meals at the most opulent restaurants, all of which are paid for by IMS Ltd. for financial advisers. Jane was given no information in this regard.
• Customers such as Jane put their trust in Peter's recommendations and falsely believed that it was permissible to invest their pension funds in IMS. The strategy that Peter recommended, facilitated, and permitted for his clients, however, resulted in his clients violating the restrictions on the early release of benefits from their superannuation, which is not legally permissible and is not appropriate. Peter is responsible for this breach of the restrictions.
• Regarding the purchase of motor vehicle insurance, Steven Pty Ltd places some restrictions on its licensee. Peter strongly suggested that Jane's firm acquire protection from Insurance Ltd. Jane did not get any information on the limits. In addition, it was not made clear that Insurance Ltd. pays significant commissions to those who market its insurance products; this information was withheld. When Steven Pty Ltd found these problems, it did not notify ASIC of them in a timely way as required by the organization. The reporting of breaches is an essential component of the board's monitoring and the licensees' risk management.ASIC discovered that the licensee did not adequately train its representatives, including Peter. There is no internal dispute resolution in place and clients often do not know who to contact in case of complaints. There is no adequate risk management system. Risks to the business and consumers are not identified and not documented.
• The Australian Securities and Investments Commission (ASIC) found that Steven Pty Ltd had claimed on their websites that some transactions on an account are free, whereas in reality the account is subject to account-keeping fees or monthly fees. However, there is still a fee associated with using the account, despite the fact that the specific transaction in question does not incur any additional costs. Because it gives off such a powerful connotation, the word "free" should never be used in situations where there is a fee of any kind associated with using the product.

REQUIRED: Use relevant Australian laws and cases to discuss legal issues and remedies in the case above