Stacey is a 75 year old widow who owns her house in a retirement village in Balcatta outright (recently valued at $420,000), she has $40,000 cash in the bank and holds about $45,000 in ANZ Shares, left to her by her late husband. She has held on to the shares because she perceives it is a safe 'blue chip' company, and because of the dividends they pay, which she uses to provide two children and four grandkids with birthday and Christmas presents (the usual total is around $1,500 per year). She has said that she wants to hold on to these shares, regardless of the plan developed.

Stacy's health is deteriorating and she is considering moving in to an aged care home. Her older son, Matthew, has been appointed as an executor of the estate and enduring power of attorney (EPOA). The will and EPOA have been in place for ten years. At the time, Stacey was in good health physically, mentally, and emotionally.

Imagine you know Matthew from university. He approaches you for advice, explaining that he is willing to sign off on advice, even if his mum cannot understand the advice. When you meet them, Matthew is enthusiastic, seems informed, and does almost all of the talking.

Question 1: 4 marks

In order to provide advice to Stacey, what other financial information might you require? Which standard/s from the Code are relevant to choosing what information you require and how you should obtain it?

Question 2: 6 Marks

What would you write in the Statement of Advice to Stacey about the advantages and disadvantages to holding on to the ANZ Shares?

Question 3: 2 Marks

Is anything about Matthew's behavior a concern? If so, why?

Question 4: 2 Marks

What are two steps you could take to ensure compliance with Standard 2?

Question 5: 2 Marks

What are two steps you could take to ensure compliance with Standard 3?

Question 6: 4 Marks

What aspects of Stacey's situation are most relevant to Standard 4? What are two steps you could take to ensure compliance with Standard 4?