The following statements about the FASEA Code of Ethics is TURE OR FALSE????

1. A financial adviser occasionally shirks their responsibilities to always provide clients with a Financial Services Guide (FSG) as soon as possible. They also continue to provide financial advice to both a husband and wife during a divorce, even though they have been told that there is a potential conflict of interest in doing so. The adviser may be in breach of multiple standards, but two standards that they are failing to uphold are Standards 1 and 3.
2. A financial adviser accepts an offer from a fund manager to attend an all-expenses-paid 'conference' in Fiji (for both them and their family) because they have placed more than $10 million of new client funds with that fund manager over the last year. The adviser has recommended these managed funds even though there are other managed funds with almost identical features that have much lower fees. The financial adviser tells the clients that the fund manager fees are reasonable given their past performance. The adviser may be in breach of multiple standards, but two standards that they are failing to uphold are Standards 7 and 10.

Appendix:

The following materials can used in this question:

Standard of FASEA code:

standard 1. Acting in accordance with laws

You must act in accordance with all the applicable laws ... including this Code

... and not try to avoid or circumvent their intent

standard 2. Integrity

You must act with integrity

... and in the best interest of each of your clients.

Financial Adviser Standards and Ethics Authority (FASEA) 'Code of

standard3. Conflict of Interest

You must not advise, refer or act in any other manner ... where you have a conflict of interest or duty.

standard 4. Consent

You may act for a client

... only with the client's free, prior and informed consent.

If required in the case of an existing client

... the consent should be obtained as soon as practicable ... after this Code commences.

standard 5. Best Interest of the Client

All advice and financial product recommendations

that you give to a client must be in the

best interests of the client

and appropriate to the client's individual circumstances

standard 6. Effects of client acting on advice

You must take into account the broad affects arising

from the client acting on your advice

and actively consider the client's broader, long-term interests and likely circumstances.

standard 7. Remuneration received by advisers and any other benefits!

The client must give free, prior and informed consent to all benefits you and your principal will receive in connection with acting for the client, including any fees for services that may be charged.

Except where expressly permitted by the Corporations Act 2001, you may not receive any benefits in connection with acting for a client, that derive from a third party other than your principal.

You must satisfy yourself that any fees and charges that the client must pay to you or your principal, and any benefits that you or your principal receive, in connection with acting for the client are fair and reasonable and represent value for money for the client.

standard 8. Record keeping

You must ensure that your records of clients

... including former clients,

are kept in a form that is complete, also accurate

standard 9. Advice in good faith

All advice you give, and all products you recommend to a client must be offered in good faith and with competence

and be neither misleading or deceptive.

standard 10. Knowledge and skills

You must develop, maintain and apply

a high level of relevant knowledge and skills

standard 11. Cooperating with monitoring bodies especially ASIC! You must cooperate with ASIC and monitoring bodies

in any investigation of a breach or potential breach of this Code.

standard 12. Uphold and promote ethical standards

Individually and in cooperation with peers

you must uphold and promote the ethical Standards of the profession, and hold each other accountable for the protection of the public interest.