You meet with Mary (28) for her initial client interview, Mary is a shop assistant at Rebel Sport earning $25,000 per year part time. She is married to Joseph (32) and they have two children: Joshua (3) and Samantha (2) and they live in Robina, QLD. She tells you that Joseph is a self-employed builder earning around $100,000 per year.

The main reason Mary wanted to meet with you is that they have a lump sum of $120,000 which they want to invest in joint names into the Orbis Global Equity fund and they have asked for your help with the paperwork as they have done all of their own research. Mary presents you with a blank application form which has been signed by Joseph and herself which they found online and she presents you with a photocopy of Joseph's driver's licence. She asks you to help her complete the application form. You are able to cite and certify her driver's licence and verify her identity.

Mary states that she is happy to pay you for your time and transfer the fee to you today, or she can bring in cash to pay for your time whichever is easier for you. She would like to have this money invested today.

Considering the scenario above, what would you do in this situation and why? What are your obligations under the relevant legislation as well as under the Code of Ethics? Can you think of something similar to this happening in practice? Reflect on how this could be handled differently.

Answer rating: 100% (QA)

My Approach and Rationale While Mary and Joseph seem enthusiastic about their investment decision I as a financial advisor am unable to complete the a... View the full answer