Henry was hosting a barbeque party for a number of his close friends, who also happened to be clients of his financial planning firm, Alpha Financial. Alpha Financial provides superannuation and investment advice. The sausages, steaks, and a few drinks were going down well with the group. Brad then turns to Henry with his mobile phone in hand.
by Justin Harding – June 07, 2021 0 comments
“Henry, have a look at this. It’s a 1975 original Holden HJ Monaro Coupe. I got these photos from a friend of a friend who had this car garaged since he bought it. It only has 27,000 kilometres on it. There’s one that went to auction at Shannon’s last year and sold for $98,500 and there’s one on eBay now for $109,000. I can pick this up for $50,000.”
Brad hands his mobile phone to Henry who pours over all the photos and remembers the good old days when he had a similar Holden. He also takes a look at the auction results and the eBay listing Brad mentioned.
“Brad, this looks great. What a car and all original. I can’t believe this only has 27,000 kilometres on it. If you don’t pick this up, I think I might, but I’ll have to run it by my wife first.”
They both have another sausage and drink as they recall a number of cars from the 70s, when they were young men. The conversation then turns to the current price of these older vehicles and whether or not this is a great deal. Brad then turns to Henry.
“So, mate, is this a good investment?”
Financial advisers often find themselves in discussions about investments, estate planning, retirement, and insurance during their own leisure time. It’s important to understand the potential risks that participating in such conversations poses to both themselves and their licensee.
The Corporations Act states that a licensee is responsible for the conduct of a representative whether or not their conduct is within authority. Specifically, 917B of the Corporations Act states, “… the licensee is responsible, as between the licensee and the client, for the conduct of the representative, whether or not the represent
Mate, is this a good investment?