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Stock exchange and financial law - Australia Nellie McQuerkin has met with Nigel Nomoney who is a financial advisor. She has recently inherited a large

Stock exchange and financial law - Australia

Nellie McQuerkin has met with Nigel Nomoney who is a financial advisor. She has recently inherited a large sum of money from her brother and wishes to have it invested. Nellie tells Nigel that as she is retiring from her career as a professional Tidleywinks player due to arthritis in her fingers, and as such, this will be her only source of income for the future so it is very important that the money is invested cautiously and in stable safe investments.

Nigel is very kind, patient and spends much time with Nellie going over her options. He suggests that she invest half of the money in Brownout Ltd. Nigel tells Nellie that Brownout is an energy company negotiating a lucrative green energy deal and so would be a good investment. Nigel also suggest that Nellie invests a quarter of the money in Flubber Pty Ltd (a rubber producer) and a quarter of the money in Smiths Pty Ltd (a high-end retailer).

It has now been two years since Nigel has invested Nellies money and Nellie is very unhappy. She comes to seek advice from you and tells you the following:

The investments have lost Nellie a significant sum of money

Nellie has discovered that Smiths shares had dropped significantly in value at the time when Nigel invested her money and that they continued to fall in value following her investment. This was due to lawsuits brought against Smiths in negligence for the distribution of faulty children's toys.

Nellie has heard through a mutual acquaintance that Nigel receives commission from Flubber Pty Ltd for each of his clients that invests in the company.

Nigel also did not send Nellie any fee disclosure statements, or any renewal notices however seems to be charging

her fees.

Advise Nellie as to the possible causes of action against Nigel. Refer to relevant legislation and case law in your answer.

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