Bill's existing clients, Pete and Christine, call to arrange an appointment. Bill is on leave and has arranged for you to assist his clients while he is away. You are meeting them for the first time. You have been told they are important clients because they often recommend family, friends and their own clients to the practice. Pete and Christine operate a successful business; however, as you read through their file, it appears they have little knowledge of investing. They have $2,000,000 to invest and want to build their wealth for retirement and help their adult children. At the meeting you begin the fact-finding process and question the clients extensively to update their current situation, goals and objectives. During the meeting, Pete takes a phone call and states they will need to leave immediately to take care of some urgent work business. They say they will call into the office tomorrow to sign any paperwork required to invest the money. They want you to invest the money in the way you think is appropriate for them. Pete and Christine state this is what Bill does for them all the time, as they are not interested in how the process works, saying, 'We are good at building things and we pay you to be good at managing our money'.

 

(a) Examine how Bill's conduct would be assessed under Standard 5 of the Financial Planners and Advisers Code of Ethics 2019. 

(b) Discuss whether Bill's advice to Pete and Christine meets the best interests obligations under Standard 2 of the Financial Planners and Advisers Code of Ethics 2019. 

Answer rating: 100% (QA)

Ethical Analysis of Bills Conduct and Advice a Standard 5 All advice and financial product recommendations that you give to a client must be in the be... View the full answer