Susana Rodrigues wants to buy a property to operate an AirBnb business for $800,000. They currently have around $200,000 in their super account and have a $300,000 mortgage debt over their home.

Several banks they visited have refused their application until they approach Amy from Reliable Finance (RF) Pty Ltd. RF is a subsidiary of Tooeasy Bank (TB) Ltd and holds a financial service licence and Amy is an employee and is authorised to provide personal advice to retail clients on finance matters.

Without asking Susana about her income and expenses, Amy advises Susana to set up a self-managed super fund to take out a loan to buy the property and to buy life and income protection insurance from another subsidiary of TB. Susan implemented the advice and took out the advised insurance policy, paying a premium much higher than competitive insurance in the market. Further, Amy did not disclose that TB Bank receives $5,000 in upfront commission because of implementation of the advice and Amy receives a bonus of $1,000 from this matter.

Advise RF and TB of their rights and obligations to Susan under relevant finance law. [10 marks]