Wes Donaldson recently took leave, and when he returned, Abi spent some time with him discussing her

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Question:

Wes Donaldson recently took leave, and when he returned, Abi spent some time with him discussing her recent meeting with Wes' clients Hugh and Debbie Martins. Hugh and Debbie had advised Abi that they were in the process of separating but wanted DHFS to continue to advise them during the separation and afterwards because of the relationship they had with Wes and the firm. Abi believed this would be okay but mentioned to you that she wasn't sure whether she had provided appropriate advice, given she is still new in her role. She also used her meeting with Wes to find out if and where Wes had recorded the clients' information from his previous interactions with them. Wes explained that most of the interactions had been informal and generally conducted on the golf course, mainly because Wes and Hugh had known each other for many years. Abi learnt that Wes has been a reliable source of referrals for Hugh's accounting business and the golf games were Hugh's way of thanking Wes for the client referrals.

As part of Abi's professional year program, you have been coaching her recently and have been discussing her professional responsibilities under the Financial Planners and Advisers Code of Ethics 2019. You are preparing for your next coaching session when you will confirm Abi's understanding of Trustworthiness and her obligations under this value (according to the Financial Planners and Advisers Code of Ethics 2019), particularly as Abi is questioned whether she has been ethical when advising her clients.

Question:

(a) Explain whether Wes is likely to have met or breached the conflicts of interest obligations under the Financial Planners and Advisers Code of Ethics 2019 in his dealings with Hugh, and whether it would be possible for DHFS to continue to advise Hugh and Debbie through their separation.

(b) Explain Abi's obligations regarding the value of Trustworthiness, with reference to the clients of Donaldson Hall Financial Services. (5 marks)