Law of Finance Essay Example

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4Law of Finance

Student’s name

Law of Finance

. Using Issue, Law, Apply, Conclude model, this is the Chapter and the principles on which John’s case will be analysed. )FSG() and Financial Services Guide SoAThe Corporations Act 2001, under Chapter 7, provides strict financial disclosure obligations needed for Financial Services Licensee’s which also provide financial assistance to retail clients. A FSL is basically a person holding an Australian Financial Services License. Therefore Chapter 7 requires that FSL to give to their customers/clients with a Statement of Account (

ss 766A-B of Corporations Act 2001.wealthy and well-informed). This is also a unique advice that entails personal superannuation policies and their investments in the shares and debentures of publicly listed corporations. To conclude on this case basing on relevant law and its application to the fact; John is providing a financial service and that is in accordance with The first issue in this case is whether John is providing financial service. The understanding of this issue is embedded on s 766A-D of the Corporations Act 2001. Applying this law to the issue, s 766A (a) explains that a person is deemed to be providing a financial service when such individual engages in financial product advice. The law is categorical on what encompasses financial product advice (s 766B). In general, such advice include but not limited to a statement, a recommendation of opinion or interpretation of information. How does s 766A-D interprets John’s case? John gives financial advice to specific category of clients (

Corporations Act 2001, relevant rule regarding this issue is s 911D of the Act. According to this section, financial services business is argued to have been carried where in the process of carrying a business, one is engaged in the conduct that is; intending to entice or induce clients into using financial service provided (s 911D (a)) or is likely to have the effect on (s 911D (a)) (b). Applying the law to the issue at hand, the case provides that John previously worked for Eternal Life Limited where he gained enormous experience selling life insurance. This gave him opportunity to work with wealthier experience investors. John therefore wants to take advantage of this fact by bringing these clients to his registered scheme. Modern Company Law (2004) explains that this act contravenes section s 911D (a) and conclusively he carries a financial services business.a financial services business. Within the jurisdiction of The second issue in this case is to ascertain whether John is engaging in

Australian Financial Services Licence and for this to be granted he will be obligated to:authorised to or exempted from providing those financial services they need AFS licence. Conclusively, John needs explains that unless someone is Company Law Review (2003)a financial service respectively. a financial services business ands 913A and s 912A-E of the Corporations Act 2001. Applying the rule to the issue, John, by virtue of s 911D (a), s 911D (b) and 766A-D engages in Australian Financial Services Licence (AFSL). The law regarding this issue is contained in The third issue of the case is whether John is obliged, under Chapter 7 of Corporations Act 2001, to obtain

  • s 912B)Have enough compensation plans for his clients (

  • Direction to provide information as statements (s 912C) and

  • Obligations to notify ASIC regarding some issues (s 912D)


Company Law Review (2003). Modern Company Law for a Competitive Economy. DTI, p.1.

Law project organizational journal, 2 (1), pp. 85-96.

Modern Company Law (2004), Competitive Economy: The Strategic Framework. URN 99/654. The Strategic Framework