A private investment company accepts money from clients - HSC - SSCE Business Studies - Question 14 - 2022 - Paper 1
Question 14
A private investment company accepts money from clients. The owner illegally uses this money for their own personal use.
Which government body would take legal acti... show full transcript
Worked Solution & Example Answer:A private investment company accepts money from clients - HSC - SSCE Business Studies - Question 14 - 2022 - Paper 1
Step 1
Identify the legal action context
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
In this scenario, a private investment company is involved in illegal activities by misusing clients' money. The owner of the company is acting unlawfully, leading to the need for regulation and enforcement actions.
Step 2
Evaluate the options
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
We must evaluate the given options:
A. Australian Taxation Office: Primarily deals with tax matters, not directly related to investment fraud.
B. Australian Securities Exchange: Focuses on market trading and would not directly take action against company owners.
C. Australian Prudential Regulation Authority: Regulates banks and financial institutions, but doesn't specifically handle investment company legal actions.
D. Australian Securities and Investments Commission (ASIC): This body monitors corporate behavior, particularly in relation to investments and securities, and is responsible for enforcement against fraudulent activities.
Step 3
Determine the correct answer
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Given the context of illegal usage of client money by an investment company, the most appropriate legal authority to take action would be the Australian Securities and Investments Commission (ASIC). Therefore, the correct answer is D.
