You are employed as a financial planner with Spitfire Finance a mid-sized firm. A good friend of yours, Leah Williams has been to see you about her financial situation. Leah is aged 43 years and has a son, aged 12. She has been living with her partner, Brian for the past 15 years and they have never married. They have registered the relationship. Leah is planning on separating from her partner. Leah has been able to accumulate substantial savings over the years due to working as a pharmacist for 20 years. Her partner Brian works as a public servant earning a mid-level salary. Leah wants to invest her savings in the name of her mother in a simple savings account until after the financial arrangements have been resolved with her partner, which could take 2 years or more to be finalised. Leah also wants to purchase

$500,000 worth of shares using a margin loan of $400,000 in order to prove that she has a high level of debt if the property settlement proves to be hostile. Leah wants you to arrange the margin loan and purchase a range of shares and invest her savings in a new account in her mothers name.

You are very concerned because Leah has been a close friend from your school days together and you are not happy that the investment arrangements are suitable for your client.

Required:

How can you implement the strategy that Leah has suggested and still comply with Standard 5? What other ethical standards may be breached if you comply with your clients wishes?