foP Enhancing power ASIC. Case Study Storm Financial l landscape is littered with investment disasters linked to financial planners issuing tionable advice owing to conflicts of interest. The reputation of financial planners has ben The reputation of financial planners has been e consequent demise of some of these managed investment schemes. sullied by th St who were advised Financial, one of Australia's biggest financial planning networks, collapsed in 2008 leaving bout 3,000 investors facing losses of up to S1 billion. Most of the losses were incurred by retirees to double-gear into the Australian share market. That is, they were advised to eir homes or borrow against their superannuation in order to invest more funds mortgage th than they actually had. re- The risk level of the plan was not relative to the risk appetite of the investors. The "know your client" rule says advice should marketed to investors where the level of remuneration received by the adviser was directly tied to the invested amount. This was all despite being a principal member of the FPA and a signatory to its code of conduct. be appropriate to the individual. In addition, the model was Questions What specific legislation was contravened when Storm Financial issued unsuitable advice to retirees? a) Research and describe anotherinstance in which a financial planner has been caught issuing questionable advice b)