The Future Of Financial Advise Legislation ( Fofa )

Given the discordant state of the Australian authorities, the High Court took the opportunity in Farah Constructions Pty Ltd v Say-Dee Pty Ltd, (‘Farah Constructions’) to clarify the Australian position on knowing assistance. Their Honours declared, in obiter, that Australian courts should continue to follow the decision in Consul Development v DPC, thereby continuing to see as necessary the requirement of a dishonest design on the part of the fiduciary, and subscribing to the proposition that where the third party’s knowledge falls within the first four categories of the Baden scale it will answer the requirement of knowledge under the second limb of Barnes v Addy.

Since implementation the Act has simplified and improved the regulation of legal service provision in England and Wales and has created a framework for legal services to be provided. The regulatory objectives and professional principles are set out in section 1 of the Act.

When accepting instructions the expert has a responsibility to the client to exercise due care with regard to the investigations he carries out and to provide opinion evidence that is soundly based. By that this means that the expert should undertakes only those tasks he is competent to carry out and gives only those opinions he is competent to provide.

Further, with regard to the duty of confidentiality, we owe an equal duty of loyalty to each of you. As such, it is imperative that each of you understands anything you individually communicate with our firm may be shared with the other members of LiteCharge Enterprises. Again, ethical considerations prohibit us from agreeing to withhold information from any of our clients in this representation if the information might affect any of our client’s interests. Unfortunately, we may be forced to withdraw our representation of one or all of you if one or more of you refuse to abide by these terms, provisions, and disclosures. Of course it should be mentioned that anything any of you individually discuss with us is privileged from disclosure to third

This document is part of a LexisNexis suite of Banking and Finance Law precedents prepared with the assistance of Specialist Editors Geoff Geha Partner, Clayton Utz and Karen Lee, Principal & Consultant, Legal Know-How.

The statutory reforms appear to have altered the duty of care to only impose an obligation to use reasonable care and not a duty to prevent harm. Notwithstanding, even when risk is foreseeable and not insignificant there is no breach unless there is a failure to act as a reasonable person. It appears the statutory reforms have endorsed the shift away from the required standard of care of risk being deemed as foreseeable unless far-fetched or fanciful to that of failing to take precautions.

The Financial Action Task Force (FATF), the institution that sets standards on struggle against terrorist financing. It has 40 recommendations for money laundering, combating terrorist financing and proliferation. After the 9/11 attacks, the special recommendations that have been developed in the struggle against terrorist financing which have not been examined before in academic studies related to terrorism. Study try to evaluate the steps to establish and implement these standards of FATF. The fact that Terrorist Financing and FATF issue has already been very limited in academic studies and that the FATF special standards for combating terrorist financing have not been included in the academic studies. It makes difficult to find resources in this issue and have made it necessary to carry out the resource study in different languages.

The Legal profession is one of the oldest, most respected professions in the world which has undergone significant changes over the years. Despite the ever changing face of the law and the way in which it is provided, the allowance of alternative business structures (henceforth referred to as ABS) in the legal sector appears to be causing a disputed discussion both outside and within the legal community. One of the core aspects of the new provisions is that legal services can now be provided by non-lawyers in accordance with the Legal Services Act of 2007 (henceforth referred to as LSA). Prior to this act, it has always been understood that legal services should only be provided by legal professionals i.e. Lawyers. However, the LSA has

The requirements of Prof. Cond. R. 1.8(a) must be met even when the transaction is not closely related to the subject matter of the representation, as when a lawyer drafting a will for a client learns that the client needs money for unrelated expenses and offers to make a loan to the client. The Rule applies to lawyers engaged in the sale of goods or services related to the practice of law, for example, the sale of title insurance or investment services to existing clients of the lawyer's legal practice. It also applies to lawyers purchasing property from estates they represent Prof. Cond. R. 1.8(a) does not apply to standard commercial transactions between the lawyer and the client for products or services that the client generally markets to others, for example, banking or brokerage services, medical services, products manufactured or distributed by the client, and utilities' services. In such transactions, the lawyer has no advantage in dealing with the client, and the restrictions in paragraph (a) are unnecessary and impracticable

Communication skills are critical to law students . In completing the intake form, my objective was to understand the client’s situation and why they were presenting at the legal service . Closed questions were used to complete the intake form and to assemble the facts . Prior to the lawyer completing the advice stage, I summarised the information I had received from the client to confirm its accuracy .

It is submitted that a lawyer who acts in the best interest of their client, without over-zealousness, in accordance with the law, and within the guidelines stipulated by their professional body will adhere to the moral principles required in a democratic pluralist society. Lawyers who allow their own morals or what they perceive to be “good”, to impede their professional judgement, is neither serving their client or community in the best professional manner.

It will provide an overview of products and arrangements that a financial adviser will consider when creating a financial plan for a client.

The affected reforms include adherence to compulsory regulations involving best interest duty and the prohibition of illegal remuneration between parties who are deemed to have an influence on the final outcome of a particular financial product and service, (FOFA: The Nuts and Bolts, n.d). Both reform components, including the provision of scaled advice to clients, will be discussed in detail below.

The investment advisers’ act of 1940 is the law that regulates the activities of the securities, and additionally protects the interests of the clients (SEC.gov, 2013). Protection is important since, there might be advisors, who may turn to be fraudulent and violate the terms of agreements that were set in place. This law was put in place and since then, it has aided the regulation of the individuals who take part in the business of carrying out the activities of advising people on the investment matters, pension funds issues as well as other financial matters. The interests of the advisors, in most times, might not be very well known, and in a bid to protect the client, this law was put in place. It became a requirement that the people who engage in the business, and all that get compensated as advisors, be registered and controlled by one body, the securities exchange commission. The commission is therefore tasked with the process of ensuring that the clients are treated well, as well as preventing any fraudulent activities from taking place. Additionally, it should be responsible for the any situations that happen to the clients due to the ignorance of the advisors, who fall under them

The subject of tipping off can be one of the most ambiguous subjects within financial organisations. There are clear laws that have financial and punitive repercussions for those who recklessly or mistakenly divulge the suspicions of the firm they are working on behalf of. The court here ruled that the use of the legislation surrounding tipping off cannot be endlessly relied on when declining the request of