Rio Finance Ltd (Rio Finance) is an Australian Financial Services Licensee (AFSL) who provides financial services in Australia. They were issued with a financial services license in December 2018. Rio Finance primarily deals with financial product advice specializing in providing advice on loans for residential housing and commercial businesses as well as mortgage insurance for these loans.

Roman is a loan officer with Rio Finance. He has a Masters in Finance and a wide range of knowledge on financial products. He has helped many Australians achieve their dream of owning their own home and/or business.

Wilbur is a 27-year-old electrician who has just purchased his first piece of land after saving for three years. He goes to Roman for advice on the best loan to help him build a home. Roman provides him with a few options and discusses the advantages and disadvantages of each product. After much thought, Wilbur decides to go with the First Home Buyer loan package from Progressive Bank with a fixed-term interest rate of 3.5% for five years. The package also includes a gold credit card with 0% interest in the first year and 20% per year thereafter. Within 10 working days, the loan is approved, and the funds are released to Wilbur. Rio Finance receives a $1000 commission from Progressive Bank for every successful loan application.

Please answer the following questions. Please be sure to include sections of any applicable legislation where appropriate and remember to use your own words.

a)Has Roman provided 'financial product advice as defined by the Corporations Act 2001 (Cth)? (2.5 marks).

b)With reference to the facts outlined in the question, what fiduciary, common law, and statutory obligations are imposed upon Roman in his dealings with Wilbur, including the content of required documentation? (12 marks)

c)Assume that Rio Finance's license was revoked 6 months ago. Rio Finance, however, continues to provide advice on financial services. Has Rio Finance breached any laws and what can Wilbur do regarding his agreement with Rio Finance once he learns their license has been revoked? (3 marks)

d)Assume Rio Finance has had its license re-issued. Wilbur has commenced building his house and begin making repayments on his loan. He notices however that the interest rate he is paying is 4.5% instead of the 3.5% rate that was outlined in his agreement with Rio Finance. He contacts Roman who states that the rate of 4.5% is the correct rate. What can Wilbur do about this? (4 marks).

Is the interest rate of 20% on the credit card after the first year a fair rate? (2.5 marks