RioFinanceLtd(RioFinance)isanAustralianFinancialServicesLicensee(AFSL) who provides financial services in Australia. They were issued with a financial services licence in December 2018. Rio Finance primarily deals with financial product advice specialising in providing advice on loans for residential housing and commercial businesses as well as mortgage insurance for these loans.

Roman is a loans 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 aftersavingforthreeyears.HegoestoRomanforadviceonthebestloantohelp 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 toWilbur. 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 bytheCorporations Act 2001(Cth)? (2.5 marks).

ai)Assume that Rio Finance's licence was revoked 6 months ago.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breached any laws and what can Wilbur do regarding his agreement with Rio Finance once he learns their licence has been revoked?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

b)Assume Rio Finance has had its licence re-issued. Wilbur has commenced building his house and begun 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? (4marks).

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