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Question: question 2b use irac format to answer the question if...

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QUESTION 2B

Use IRAC format to answer the question if you can. 

  1. Issue: State the legal issue(s) to be discussed.
  2. Rule: State the relevant statutes and case law.
  3. Application: Apply the relevant rules to the facts that created the issue.
  4. Conclusion: State the most likely conclusions using the logic of the application section

You are a graduate analyst working for the Australian Securities and Investments Commission (‘ASIC’).

William Armstrong (‘Armstrong’) is the sole director of Green Day Financial Advisors Pty Ltd (‘GDFA’). The majority of GDFA’s clients are self-funded retirees that require a relatively stable income steam to maintain their lifestyle.

ASIC has received a complaint that Armstrong has induced various investors to transfer funds, including funds from their self-managed superannuation funds (SMSF), for investment into an unregistered managed investment scheme. The complaint alleges that Armstrong advised clients to invest in the scheme and promoted it as being “a rock solid investment”. In fact, the scheme was funding an extremely risky property development led by an inexperienced company Polyplex Ltd (‘Polyplex’). Max, the director of Polyplex, is Armstrong’s friend – having met at university. The complaint also alleges that Armstrong invested some of his client’s superannuation funds the scheme without their knowledge or consent. Further, it is alleged that Armstrong recommended clients take out trauma, life and total and permanent disability insurance policies for over $1 million in coverage – where these clients had little or no debt and no dependents.

Your manager has asked you to answer the following questions based on the legal issues raised by the allegations. If there are any further facts that you would need to complete the analysis, state what questions you would ask and why these are necessary.

b) What is the purpose of superannuation and how does investing in a Self-Managed Superannuation Fund compare to an Industry Superannuation Fund? 

You can refer to the Corporations ACT 2001 on the link below if need be.

http://www5.austlii.edu.au/au/legis/cth/consol_act/ca2001172/

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