Spitfire Finance, a mid-sized corporation, employs you as a financial planner. Leah Williams, a close friend of yours, recently visited you to discuss her financial circumstances. Leah, 43, has a 12-year-old son. For the past 15 years, she has been living with Brian, her long-term partner. 

They've made a note of the relationship. Leah intends to break up with her boyfriend. Leah's 20 years as a pharmacist have allowed her to save a lot of money over the years. As a public servant, Brian earns a middle-level wage. Up until the financial arrangements with her partner are finalised, Leah plans to put her money into a basic savings account in the name of her mother. This may take up to two years. Additionally, Leah intends to use a margin loan of $400,000 to buy $500,000 worth of shares in order to demonstrate that she has a significant level of debt in the event of a contentious property settlement agreement. Investing in shares in her mother's name is important to Leah. 

She wants you to set up a margin loan, buy some shares, and put the money into a new account in her mother's name. Because Leah was a close friend of yours from high school, you're worried about the financial options that you've put together for your customer.

Required:
Is there a way to adopt Leah's technique while still following FASEA Standard 5? 

What other FASEA standards may be breaking if you follow your client's requests?

Answer rating: 100% (QA)

As a financial planner your primary obligation is to act in your clients best interests and comply w... View the full answer