Carol (87) is preparing to move into an aged-care facility as her health is declining. She is a homeowner (home valued at $540,000) and has around $85,000 in her bank account. She has told you that she wants to keep her home as an inheritance for her four children which is outlined in her Will. Carol has nominated her eldest Son, John, to be her executor as well as her enduring power of attorney. John is a friend of yours and he has referred his mother to see you regarding aged care advice. John explains to you that his mother, Carol, will be happy to sign off on any advice even if she is unable to understand the recommendations. During the initial appointment you notice that when you ask Carol a direct question, John speaks over her and does all the talking and he has mentioned on several occasions that he wants to 'speed up the process'.

Consider: Does anything about this situation seem unethical to you and why? What concerns you about this situation and why? Standard 2 of the Code of Ethics states that advisers must act with integrity and in the best interest of each of their clients. Are there any steps that you could take to ensure that you are not in breach of this standard as a result of your relationship with John?

Answer rating: 100% (QA)

Several aspects of this situation raise ethical concerns and potentially violate Standard 2 of the Code of Ethics which requires advisors to act with ... View the full answer