law of investment

law of investment

Please choose either question one or question 2. NOT BOTH.

Question 1
“The corporate regulator has increased investigations into wealth
management firms by more than 200 per cent over the past year as it
prioritises cases involving the country’s major financial institutions in
the fallout from the banking royal commission.
ASIC’s most recent six month enforcement update reveals it started 77
new investigations into misconduct and secured close to $20 million in
compensation and remediation for Australians between January and

Research and discuss one of the cases ASIC investigated in the first
half of this year (January –July 2019).
Your answer should:

(a) Provide a brief overview of the key facts;
(b) Outline what the key legal rules were;
(c) Explain how the law was applied to the facts;
(d) Explain how ASIC exercised its role of regulator;
(e) Explain how ASIC exercised its enforcement powers; and
(e) Analyse whether or not this case demonstrates a change in
ASIC’s approach to enforcement since the Hayne Royal
Please ensure you provide a link to the case you are investigating.
(1,500 words) 40 Marks

Question 2
You are working as an adviser in a large financial institution. Your
clients, Ginger and Rogers, are the directors of Twilight Happiness Pty
Ltd a successful family company that provides residential aged care
and retirement living in the Mornington Peninsula.
As well as being the directors, Ginger and Rogers each own a 50%
shareholding in the company.
Twilight Happiness Pty Ltd has plans for a 75- bed state-of- the- art
facility in upmarket Sorrento. The directors have plans for cordon
bleau chefs, pilates and wellness instructors and a hydrotherapy pool
for water aerobics to attract cashed-up retirees.
In order to fulfil these ambitious plans, Twilight Happiness Pty Ltd
needs to raise $15 million.
The directors seek your professional advice.
Advise Ginger and Rogers how the company should raise the $15
What are the legal implications of your advice?
Please support your answer with relevant sections of the Corporations
Act 2001 (Cth) and/or case law.

(1,500 words) 40 Marks

This assessment requires AGLC footnote referencing AND a bibliography.
Please carefully read and comply with the assignment instructions on



– Austin, RP and Ramsay, IM, Ford’s Principles of Corporations Law (12th ed, 2005).
– Ciro, T and Symes, C, Corporations Law In Principle (8th ed, 2009).
– Duffy, Michael J, “Insider Trading: Addressing the continuing problems of proof” (2009) 23 Australian
Journal of Corporate Law 149.
– Lipton, P and Herzberg, A, Understanding Company Law (14th ed, 2008).
– North, Gill, ‘The Australian insider trading regime: Workable or hopelessly complex?’ (2009) 27(5)
Company and Securities Law Journal 310.
– Redmond, Paul, Companies and Securities Law: Commentary and Materials (5th ed, 2009).
– Rubenstein, Simon, ‘The Regulation and Prosecution of Insider Trading in Australia: Towards Civil
Penalty Sanctions for Insider Trading’ (2002) 20(2) Company and Securities Law Journal 89.
– ASIC v Petsas and Miot (2005) 23 ACLC 269; [2005] FCA 88.
– ASIC v Vizard (2005) 145 FCR 57; [2005] FCA 1037.
– R v Doff (2005) 23 ACLC 317; [2005] NSWSC 50.
– Corporations Act 2001 (Cth).