...Statement of Advice Prepared for Mr Brian and Leanne Prepared 21 August 2013 Prepared by Michelle Tee, MFP Senior Financial Planner Authorised Representative Number 123456 Level 1, 123 Camordy Road St lucia, QLD 4067 Phone: 07 2345 2345 michelle@insfunds.com.au Authorised Representatives of XYZ Financial Planning Pty Ltd ABN 12 222 222 222 AFS Licence Number 222222 GPO Box 2222 Brisbane QLD 1234 Scope of Advice Thank you for discussing your financial planning problems with me. My aim is to help you to achieve your objectives and ensuring that your lifestyle is maintained. You have requested our advice to the following areas which you stated are important: You want to know your insurance needs so that you are able to meet financial obligations in case of any serious accident or illness. It is important you understand that all advice is scaled – only you can limit the scope of our advice. Please note that I have limited my recommendations, thus please consider my advices towards your financial goals and objectives. It is important you understand that all advice is scaled - that is, all advice is limited to some extent. Please note that my following recommendations are based on the information you have provided me and only relate to the areas above. This advice does not take into account all of your personal situations. Since you did not provide sufficient details of your current cash flow position in order for reviewing your financial...
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...MGMT 1001 Assignment 2 : Report Henry Dinh Student Name : Henry Dinh Student ID: 3372774 Course: MGMT 1001 Tutorial Time: Friday 1pm Tutor’s Name: Noa Date: 24 / 05 / 2013 EXECUTIVE SUMMARY The Everest simulation is a five-player simulation requiring groups of students to work together to overcome challenges and obstacles in order to conquer the mountain and reach the summit. The designers, Harvard Business School, do their best in incorporating real life dangers such as unpredictable weather, fluctuating health conditions and oxygen scarcity into the virtual expedition. In doing so, teams must manage, plan organize and manage themselves so that they can perform effectively and achieve the ultimate goal of reaching the summit. In the simulation, the roles of being a physician, an environmentalist, the team leader, a photographer and a marathon runner, are delegated to each team member. If a team had more than five members, such as our team, the remaining members would assume the role of an observer. Each role had different personal information and goals tailored to them and the simulation encouraged players not to share personal information to others, thus mirroring real-life situations. In the past years, it has been shown that students generally learn from their mistakes in the first simulation and perform better in the second. However Team ‘_____ ’ deviated from this idea, starting with 50% and deteriorating to 38%. The major improvement in performance...
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...Need Answer Sheet of this Question paper, contact aravind.banakar@gmail.com www.mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 ACCOUNTS CASE STUDIES Q1) Advice to BPLT Ltd about the treatment of the following in the final statement of accounts for the year ended on 31st March 2002. A claim lodged with the railways in March 1999 for loss of goods of Rs 2,00,000 had been passed for payment in March 2002 for Rs 1,50,000. No entry was passed in the books of company, when the claim was lodged. Q2) Y. Co Ltd used certain resources of X Co Ltd. In return X Co. Ltd receives Rs 10 lakhs and Rs 15 lakhs as interest and royalties, respectively from Y Co Ltd during the year 2001-2002 you are required to state whether and on what basis their revenue can be recognized by X Co Ltd? Q3) On December 1, 2001 Royal Co. purchased Rs 4,00,000 worth of land for a factory site. Royal razed an old building on the property and sold the material its salvaged from the demolition. Royal incurred additional costs and realised salvage proceeds during December 2001 as follows : |Demolition of old building |Rs. 50,000 | |Legal fees for purchase contract and |Rs. 10,000 | |recording ownership | | |Title guarantee insurance |Rs. 12,000 | |Proceeds from Sale of Salvaged...
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...REGULATORY GUIDE 90 Example Statement of Advice (SOA) for a limited financial advice scenario for a new client August 2005 REGULATORY GUIDE 90: EXAMPLE STATEMENT OF ADVICE What this guide is about This guide explains how and why we have developed an example Statement of Advice (SOA). The example SOA was developed in consultation with stakeholders, and we acknowledge their valuable contribution throughout the process. 1 2 This guide: (a) sets out the purpose of the example SOA (Section 1); (b) outlines the framework in which the example SOA was developed (Section 2); and (c) explains why certain information has been included, or not included, in the example SOA (Section 3). Note: For the example SOA, see Appendix B. For details of the financial advice scenario on which the example SOA is based, see Appendix A. This guide should be read in conjunction with guidance we have issued on how we will administer the SOA requirements, including: 3 (a) Policy Statement 175 Licensing: Financial product advisers— conduct and disclosure [PS 175]; (b) Licensing: The scope of the licensing regime: Financial product advice and dealing—An ASIC guide (November 2001, reissued May 2005); (c) Policy Statement 167 Licensing: Discretionary powers [PS 167]; (d) Policy Statement 168 Disclosure: Product Disclosure Statements (and other disclosure obligations) [PS 168]; (e) Media Release [MR 04-062] FSR disclosure to be clear, concise and effective (10...
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...Motives of the financial advisor (Mr. Weaver) From the case, we are informed that Mr. Weaver (the defendant) pleaded guilty for 3 counts of failing to have a reasonable basis for the advice he gave and one count of making a false or misleading statement. He admitted that the advice he offered to his clients did not have a reasonable basis thus, it is as if he offered blind advice that affected the clients negatively. The clients followed his advice presuming that he is a trusted professional who has extensive knowledge in matters of financial investments. The defendant Mr. Weaver did not have any ulterior motive by giving this false advice but seems he acted this way due to assumptions. He did not take time to analyze the underlying facts so as to come up with credible advice that would benefits his clients; thus, he acted carelessly. Legal tools used by Judge Wall QC In making his ruling, judge Wall capitalized on section 1041E of the Australian corporations Act 2001, which protects the plaintiff against the false or misleading statements made by the people they relied upon. This section deals with different forms of misleading statements or omissions. Giving information which is materially false or misleading when making a contract or when giving advice to somebody whom they rely on the advice of is illegal.(s1041E) The section applies...
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...Motives of the financial advisor (Mr. Weaver) From the case, we are informed that Mr. Weaver (the defendant) pleaded guilty for 3 counts of failing to have a reasonable basis for the advice he gave and one count of making a false or misleading statement. He admitted that the advice he offered to his clients did not have a reasonable basis thus, it is as if he offered blind advice that affected the clients negatively. The clients followed his advice presuming that he is a trusted professional who has extensive knowledge in matters of financial investments. The defendant Mr. Weaver did not have any ulterior motive by giving this false advice but seems he acted this way due to assumptions. He did not take time to analyze the underlying facts so as to come up with credible advice that would benefits his clients; thus, he acted carelessly. Legal tools used by Judge Wall QC In making his ruling, judge Wall capitalized on section 1041E of the Australian corporations Act 2001, which protects the plaintiff against the false or misleading statements made by the people they relied upon. This section deals with different forms of misleading statements or omissions. Giving information which is materially false or misleading when making a contract or when giving advice to somebody whom they rely on the advice of is illegal.(s1041E) The section applies...
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...Key disclosure documents- Financial Service Guide (FSG), Statement of Advice (SOA), Product Disclosure Statement (PDS) Disclosure requirements are designed to promote informed decision making by both advisers and investors. In the context of financial services disclosure documents, the aim is to enable investors to compare and make informed choices relating to financial products. Chapter 7 of the Corporations act 2001 institutes that a FSG must be given to a retail client who has been provided with a financial service while a SOA must be given to a retail client provided with personal advice and a PDS should be given to a retail client before he acquires the financial prouct. An FSG is required to be given to a client in the provision of general or personal financial product advice. The purpose of a FSG is to enable clients to make an informed decision as to whether to obtain financial services from a particular provider. The level of detail required in the FSG is what would reasonably be required by a person to empower him to make an informed decision. It is imperative that the FSG is worded and presented in a clear, concise and effective manner and must not contain information or statements that are misleading or deceptive S942B(6A). Whenever financial services are provided, financial service providers have an obligation to give retail client an FSG. Circumstances which does not warrant a FSG include – when a client is not a retail client, when there’s an absence...
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...Hotel. Jim, a law lecturer, is a speaker at the conference and the conference is attended by Albert who has just started a graphic design business and Percy a well-established market gardener. At the conference Albert meets Barry, a fellow student from University days, whom he has not seen for some time. During lunch, while discussing pension investments, Barry tells Albert that if he (Albert) invests some money in Dunmore Limited (of which Barry is a director), he will obtain a good return on his investment. As a result of this advice, Albert subsequently purchases 20,000 £1 shares in Dunmore Limited. A few months later Dunmore Limited goes into liquidation and Albert loses his money. After the conference Jim, returns to his office in the Law Faculty and finds a student from the Campus Law Centre waiting for him to request him to deal with a client's problem. Jim has agreed to support the students' efforts to provide free legal advice at the Centre and the problem concerns a claim by a Mrs Smith on her insurance policy. Jim speaks to Mrs Smith and advises her that she cannot claim but unfortunately he has failed to note an important change in the law six months earlier which affects her position. Some months later, Mrs Smith reads a story in the newspaper where someone has succeeded in identical circumstances to her own. However, it is now too late for her to make a claim on her policy. Percy also returns to work after the conference, only to discover that while...
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...Statement on Responsibilities in Personal Financial Planning Practice Copyright © 2010 by American Institute of Certified Public Accountants, Inc. New York, NY 10036-8775 All rights reserved. For information about the procedure for requesting permission to make copies of any part of this work, please visit www.copyright.com or call (978) 750-8400. ACKNOWLEDGMENTS Statement on Responsibilities in Personal Financial Planning Practice Task Force Clark Blackman II, Chair (PFP Executive Committee) and Past Chair Dirk Edwards, Chair John Connell Charles Kowal Jerry Love Randy Ryan Scott Sprinkle Ken Strauss AICPA Staff Mark Koziel, Director (Specialized Communities) Andrea Millar, Sr. Technical Manager (PFP Division) Teighlor March, Senior Manager (Legal, Legislative & Regulatory Affairs) Sarah Bradley, Project Manager (PFP Division) 2 Contents Acknowledgments .................................................................................................................................. 2 Foreword ................................................................................................................................................ 4 Exceptions From This Statement............................................................................................................. 6 Responsibilities of Members in Personal Financial Planning Services Engagements .............................. 7 Professional Competence .....................................................
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...auditors do not owe a duty of care to all users of their info (duty only extends to their clients). o Brennan J: o Mere foreseeability of the possibility that a statement made or advice given by A to B might be communicated to a class of which C is a member and that C might enter into some transaction and suffer subsequent financial loss is insufficient to impose on A a duty of care owed to C in the making of the statement or the giving of the advice. o Following Caparo Industries Plc v Dickman - But, in every case, it is necessary for the plaintiff to allege and prove that: the D knew or ought reasonably to have known that the information or advice would be communicated to the P, either individually or as a member of an identified class, that the information or advice would be so communicated for a purpose that would be very likely to lead the P to enter into a transaction of the kind that the P does enter into and that it would be very likely that the P would enter into such a transaction in reliance on the information or advice and thereby risk the incurring of economic loss if the statement should be untrue or the advice should be unsound. o McHugh J: Mere act of an auditor supplying a signed audit report stating the company's position, knowing that the company would, in turn, pass the statement on to creditors, is not sufficient to establish a duty of care in the...
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...Donoghue drank half the ginger beer, the rest was poured into a glass, out floated the remains of a decomposed snail, as a result become ill. HELD the manufacture owned a duty of care to the ultimate customer. In order to be successful in the claim of negligence, you must prove the existence of the following three elements : i. Duty of care ii. Breach of duty iii. Damage Duty of care is the first thing that the courts try to prove whether there is an existence of negligence . From the information provided it is clear that the surveyor gave a false statement, which caused you to buy the house. This is (unclear antecedent) called negligent misstatement . This was established in the case of Hedley Byrne & Co v Heller (1964) in which it was stated that duty of care was owed if three elements where established : i. That there was a special relationship between the parties involved ii. The party relying on the statement iii. Thereby suffering loss. Hedley Byrne & Co v Heller (1964) Lord Ried who stated that a special...
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...accounting and financial statement fraud, and provide descriptions of the conditions within the fraud triangle. In providing guidance to the Anonymous caller, we will compare the risks between resigning immediately and staying with the current company. Further, we will discuss other sources of advice for the caller, including legal advice and the State Board of Accountancy. In examining aggressive accounting and financial statement fraud: we will discuss the prevalence of such acts, the pressures put on accountants to perform such acts, and how to determine whether these acts are in accordance with GAAP. The conditions within the fraud triangle are: an incentive to engage in fraud, an opportunity to commit fraud, and an attitude to rationalize the conduct of fraud. We will describe the conditions that existed in the case of the anonymous caller. THE ANONYMOUS CALLER: In this situation, the anonymous caller has recently started working for a small, privatelyheld company and the executives of the company are giving their bank potentially fraudulent financial statements in order to extend their line of credit. The first action the caller should make is to meet with the executives again. The executives have no accounting background, and may not be aware of the considerable risks of providing their bank with fraudulent financial statements. These risks include legal action by the bank and potential jail time for anyone who signed off on the financial statements. The fraudulent activity...
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...offers a full range of financial services to a wide variety of clients. Vision Statement “We provide financial planning services through a national network of Adviser Practices staffed by qualified financial planners. Our advisers are dedicated to helping you to secure your financial future and achieve your lifestyle choices. We develop a deep understanding of your needs and risk profile before delivering tailored solutions to your wealth creation problems. Our goal is to work together with you on your journey over your lifetime. As one of Australia’s most respected financial planning groups, our Financial delivers unique and appropriate solutions for the creation and management of wealth.” Due to the fact that the company has not published a Vision Statement, the above passage has been taken off the WB website to analyse as such. As can be seen it is directed toward clients rather than at employees of the company but still gives a broad directional indication to managers of where to direct their operations. Overall as a vision statement the above does not provide the motivation and future direction that a properly worded vision statement can and is meant to provide. The vision is forward-looking and directional in that it gives employees an idea of what services they are to provide. It also delivers feasible objectives for employees to work towards. However, as a vision statement it is not memorable due to the fact that it is too long to be easily communicated...
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...Cases decided on the basis of common law are likely to follow the precedence of earlier cases with similar facts. This means that whatever judges say becomes law and become binding for the subsequent trials in the lower courts unless the law is later developed or changed through the enactment of a statutory provision. In the case of Hedley Byrne, it had been earlier established at first instance that there was no scope for liability for negligent misstatements on the ground that there was an express disclaimer of responsibility therefore this dismissed any scope of liability. Similarly, at the court of appeal a comparable approach was taken and again McNair J held that the defendants were indeed negligent, however they owed no duty of care towards the appellants. However, it has been established that the English courts develop incrementally hence; the focus here will be on economic loss which was first illustrated in Hedley Byrne, how it has led to similar decisions in subsequent cases and how the law has developed ever since. Prior to the extension of the law regarding negligent misstatements in Hedley Bynre, it was accepted that liability for negligent misstatements could only arise in exceptional circumstances. Hence it was submitted that liability could only arise in instances where one of the following categories were satisfied; there was a fiduciary relationship or where the relationship was contractual or that it must arise from the relationship of proximity. This principle...
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...3. Partnerships a. Definition: the relationship that exists between persons carrying on a business in common with a view of profit (section 1 Partnership Act 1892 (NSW) It is the pooling of resources in order to make profits persons • carrying on a business • in common, and • with a view of profit. • Persons — At least two persons are required to form a partnership. There is also a maximum number of partners: no more than 20.4 Certain professional partnerships, however, are excluded from this limitation Carrying on a business — A business is defined in the legislation as a ‘trade, occupation or profession’.6 The requirement that the partners be ‘carrying on a business’ suggests that there must be a continuity or repetition of trading activities. In common — People carrying on business together will only be partners in a partnership if they are doing so ‘in common’. Degiorgio v Dunn [2004] NSWSC 767没有doing so in common With a view of profit —the partners are carrying on the business together to make a profit. 如有疑问These partnership rules are: 1. Co-ownership of property does not of itself create a partnership. This means that if someone owns real estate with another person and shares in the rental income and/ or proposes to share in the profit upon sale of the property, they have not necessarily formed a partnership. 2. Sharing of gross returns does not of itself create a partnership. If two or more persons engage in a joint enterprise where they share the gross returns...
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