Task 1: Problem-solving (1000 words)
Background
You have recently graduated with a Bachelor of Business and your parents are very proud of you when you land a job with the newly formed Australian Financial Complaints Authority (AFCA). Your supervisor at AFCA has provided you with some case files and wants you to prepare advice and answer specific questions for each of them.
You will need to provide advice to the following based on the case study related to Matilda and Ulysses (PDF 257 KB):
- Matilda and Ulysses want to know if they can sue T-BANK for recommending Natalie to them.
- Are they customers of T-BANK?
- Has ReadyQik Finance Ltd engaged in ‘irresponsible lending’? What remedies are available to Matilda and Ulysses?
Task 2: Research (2000 words)
The Royal Commission has looked into the misconduct in the banking, superannuation and financial services industry (the ‘Hayne Royal Commission’). The Hayne Royal Commission has made numerous recommendations. You will need to select one of the options below and answer the accompanying question:
Options
Option 1
Although it has been criticised, the Hayne Royal Commission has been described as a watershed moment for the Australian financial system. In its final report it made four observations, the first of which is below:
First, in almost every case, the conduct in issue was driven not only by the relevant entity’s pursuit of profit but also by individuals’ pursuit of gain, whether in the form of remuneration for the individual or profit for the individual’s business. Providing a service to customers was relegated to second place. Sales became all important…
(Unknown 2019)
Question: Discuss the above observation and whether existing laws (both legislation and rules of common law) in your opinion are effective in preventing the problem above.
Option 2
Recommendation 5.6: Changing culture and governance
All financial services entities should, as often as reasonably possible, take proper steps to:
- assess the entity’s culture and its governance;
- identify any problems with that culture and governance;
- deal with those problems and determine whether the changes it has made have been effective.
(Australian Banking Association 2019)
Question: Can legislation effectively change or improve the culture in the financial services industry? (Pay particular attention to banks [ADIs]).
Option 3
Question: Choose your own recommendation from the Hayne Commission and design your own question. If you choose this option, you must obtain permission from your eLA by end of Week 2.
Referencing guidelines
You need to use AGLC style in referencing your sources. See the AGLC4 style guide (Links to an external site.) for guidelines. Case citations should be placed in footnotes (i.e. Donoghue v Stevenson1) Please include a reference at the end of the assignment, indicating all sources used in the preparation of your answer.
