Veronica Driessen is a principal of an award-winning advising firm. A new client, Faisal decides to seek
Question:
Veronica Driessen is a principal of an award-winning advising firm. A new client, Faisal decides to seek her advice. Upon learning that Faisal is a member of ACME Superannuation Fund, Veronica advises Faisal that he should instead open a self- managed superannuation fund (SMSF) and move money into Driessen Managed Funds. She does not look into other alternatives, and she does not outline the conflict inherent in suggesting her own managed funds as a suitable investment for Faisal.
While Veronica is insistent that Faisal implement her advice, Faisal is unsure and wants to take some time to deliberate on the matter. While waiting for Faisal's decision, Veronica encourages a co-worker, Neville, to call ACME and pretend to be Faisal as she has Faisal's membership number. While Neville is unsure about the ethics of making this call, Veronica insists that she is doing this for Faisal's best interests, as the sooner that he is able to move his funds into an SMSF the better. Neville makes the call to ACME, impersonating Faisal.
In the meantime, unable to shake his wariness over implementing Veronica's advice, Faisal seeks another opinion. He is told by a second adviser that he should, under no circumstances, implement Tracey's advice due to a deferred retirement benefit payment from ACME which would see him lose $500,000.
Question 1
Has Veronica acted in the best interests of her client? Why or why not? In your answer, refer to the FASEA Code of Ethics and values.
Question 2
Discuss Veronica's decision to have a co-worker impersonate Faisal and acquire information about his ACME account without his consent. Which standard(s) of the FASEA Code of Ethics does this action breach?
Question 3
What would Veronica need to do to address the conflict of interest inherent in advising that Faisal invest in her own managed funds account?