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CaseStudy– JohnSmith
§ INCREASINGLYMOBILEPOPULATIONS,ESPECIALLYRETIREESWITHASSETS
§ LOWINTERESTRATEENVIRONMENTDRIVINGINVESTORSUPTHERISKCURVE,ESPECIALLYOLDERINVESTORSWITHFEWORNOEARNINGYEARSREMAINING
§ OTHERISSUESUNIQUETOOLDERINVESTORS(CAPACITY,SUBSTITUTEDECISION-MAKING,ABUSE,TARGETEDSCAMS)
§ ABILITYTOCOMMUTEPENSIONSANDFREEUPPENSIONASSETSTHROUGHEARLYWITHDRAWALPROVISIONS
§ SALESACTIVITYHAPPENINGACROSSJURISDICTIONALBOUNDARIES(LIVEANDVIATHEINTERNET)
CaseStudy– JohnSmith
§ UNLICENSEDINDIVIDUALSENGAGINGINTHEPROMOTIONANDSALEOFINVESTMENTPRODUCTS(QUESTIONOFREGULATORYANDDISPUTERESOLUTIONBODIES’ABILITYTODOANYTHINGINTHOSECIRCUMSTANCES)
§ IFCRIMINALACTIVITY,ENFORCEDDILIGENTLY?
§ ALTERNATIVEINVESTMENTSBEINGSOLDASRETAILANDTHECHALLENGETHEYCREATE
§ WHOCOVERSTHESALEOFINSURANCEPRODUCTSASINVESTMENTS?IFSEPARATEREGULATORS?ARETHEREGULATORYSTANDARDSAPPLIEDTHESAMEINBOTHCASES?
CaseStudy– JohnSmith
§ IFDISPUTERESOLUTIONININVESTMENTSANDINSURANCEARECOVEREDBYDIFFERENTDISPUTERESOLUTIONBODIES,WHICHONEHASJURISDICTIONFORACOMPLAINTINVOLVINGTHESALEOFANINSURANCEPRODUCTASANINVESTMENT?ARETHEAPPROACHESANDSTANDARDSOFFAIRNESSTHESAME?
§ CROSS-BORDERCOMPLAINTSANDPROTOCOLSBETWEENDISPUTERESOLUTIONBODIES
§ RISKASSESSMENTSMADEBYFIRMSINDISCLOSUREDOCUMENTATIONANDRELIANCEUPONTHEMBYINVESTORSATPURCHASE,ANDLATERBYFIRMSWHENINVESTMENTSUITABILITYISCHALLENGED(WHOSAYSWHETHERAFUNDIS HIGH-RISKORNOT?)
§ PRODUCTFIRM(FUNDCOMPANIES,INSURANCECOMPANIES,ALTERNATIVEINVESTMENTCOMPANIES)RESPONSIBILITYTOENSURETHATTHEIRPRODUCTSARESOLDONLYBYLICENSEDINTERMEDIARIES(FIRMSANDINDIVIDUALS)?LIABLEFORLOSSESIFTHEYDONOTTAKEREASONABLECARE?
CaseStudy– JohnSmith
§ DEFINITIONOFRISKINDISCLOSUREDOCUMENTATIONANDLATERWHENLOOKINGATCOMPLAINTS
§ SHOULDLOSSESDUETOINDIVIDUALUNSUITABLEINVESTMENTSBECOMPENSATEDORDOYOUNEEDTOLOOKATTHEPERFORMANCEOFTHEOVERALLPORTFOLIO?
§ SHOULDINVESTORSRECEIVEBACKONLYTHEAMOUNTLOSTORSHOULDTHEYRECEIVEWHATTHEYSHOULDHAVEEARNEDIFTHEYHADBEENSUITABLYINVESTED(OPPORTUNITYCOST)?
§ WHATDOWELOOKTOASTHEBENCHMARKSFORASUITABLY-INVESTEDLOWTOMEDIUMRISKPORTFOLIO?
CaseStudy– JohnSmith
§ ISTHECOMPENSATIONOFTHESALESPERSONRELEVANTTOTHEANALYSISOFTHECOMPLAINT?WASTHECOMPENSATIONSTRUCTUREACONTRIBUTINGFACTORINTHISSITUATION?
§ WASTHERECONTRIBUTORYNEGLIGENCEONJOHN’SPART?WASHESUFFICIENTLYSOPHISTICATED,DESPITEBEINGALOW-RISKINVESTOR,TOASSUMESOMERESPONSIBILITYFORTHISOUTCOME?
CaseStudy– MaiaSariman
§ ABILITYFORDISPUTERESOLUTIONTOSECURECOMPENSATIONFROMFIRMSANDINDIVIDUALSIMPEDEDBYDEREGISTRATION/DISSOLUTION
§ WHATISTHERESPONSIBILITYOFNEWFIRMSANDINVESTMENTADVISORSTOENSURETHESUITABILITYOFINVESTMENTSALREADYINACCOUNTSUPONTRANSFERINOFACCOUNTS/ASSETS?
§ WHATISTHERESPONSIBILITYOFNEWFIRMSANDINVESTMENTADVISORSTOENSUREADHERENCETOINVESTMENTMANDATESUPONTRANSFERINOFACCOUNTS/ASSETS?
§ WASTHEREADISCONNECTBETWEENTHEINCOMEOBJECTIVEANDTHERISKTOLERANCE?
§ IFTHEREWASACONFLICT,HOWSHOULDITHAVEBEENRESOLVED?
CaseStudy– MaiaSariman
§ WHATARETHEEXPECTATIONSFORINVESTMENTADVISORSTOMEETWITHTHEIRCLIENTSUPONTRANSFERINOFACCOUNTS/ASSETS?HOWDOESTHISRELATETOTHEKNOW-YOUR-CLIENTREQUIREMENTS?
§ WHODEFINESASHARIA-COMPLIANTINVESTMENT?§ IFANINVESTMENTISNOLONGERSHARIAH COMPLIANTANDTHE
CLIENTINSISTEDONMAINTAININGASHARIAH COMPLIANTPORTFOLIOWITHOUTCOMPROMISINGTHEPERFORMANCEOFTHEPORTFOLIO,WHATWERETHEFACTORSTHATTHEADVISERSHOULDHAVECONSIDERED,ESPECIALLYIFTHEYWISHTORETAINTHECLIENT,ONCETHECLIENT’SCONCERNCAMETOTHEIRATTENTION?
CaseStudy– MaiaSariman
§ CONSIDERINGTHECLIENT’SMANDATE,WHATARETHECONTROLSTHATNEEDTOBEPUTINPLACEINORDERTOMITIGATETHERISKOFNON-COMPLIANCEWITHSHARIAH PRINCIPLES/NON-ADHERENCETOCLIENT’SMANDATEDURINGTHELIFEOFTHEPORTFOLIO?
§ CANTHESTANDARDVARYACROSSJURISDICTIONS?ISTHATRELEVANT?WHATABOUTSITUATIONSWHERETHEINVESTMENTADVISOR/FIRMANDTHEINVESTORAREINDIFFERENTJURISDICTIONS?
§ SHOULDINVESTORCOMPENSATIONINCLUDEPAYMENTSFORDISTRESSCAUSED?
CaseStudy– MaiaSariman
§ REGARDINGTHEALLEGATIONOFSHARIANON-COMPLIANCE,HOWDOYOUQUANTIFYLOSSORENTITLEMENTTOCOMPENSATIONINASITUATIONSUCHASTHIS;ESPECIALLYIFTHERETURNSFROMTHESHARIAH NON-COMPLIANTINVESTMENTSCONTRIBUTEDTOTHEOVERALLPOSITIVEPERFORMANCEOFTHEPORTFOLIO?
§ SHOULDTHEINVESTORBEENTITLEDTORETAINTHECASHEQUIVALENTOFTHEPORTFOLIOGAINSANDSEEKADDITIONALCOMPENSATIONFORDISTRESS?
§ DOWEASREGULATORSANDDISPUTERESOLUTIONPROFESSIONALSINNON-MUSLIMJURISDICTIONSKNOWENOUGHABOUTTHECOMPLEXITIESOFISLAMICFINANCE?WHERECANWESEEKOUTTHATEXPERTISETOBUILDCAPACITY?
CaseStudy– MaiaSariman
§ REGARDINGTHEALLEGATIONOFSHARIANON-COMPLIANCE,HOWDOYOUQUANTIFYLOSSORENTITLEMENTTOCOMPENSATIONINASITUATIONSUCHASTHIS;ESPECIALLYIFTHERETURNSFROMTHESHARIAH NON-COMPLIANTINVESTMENTSCONTRIBUTEDTOTHEOVERALLPOSITIVEPERFORMANCEOFTHEPORTFOLIO?
§ SHOULDTHEINVESTORBEENTITLEDTORETAINTHECASHEQUIVALENTOFTHEPORTFOLIOGAINSANDSEEKADDITIONALCOMPENSATIONFORDISTRESS?
§ DOWEASREGULATORSANDDISPUTERESOLUTIONPROFESSIONALSINNON-MUSLIMJURISDICTIONSKNOWENOUGHABOUTTHECOMPLEXITIESOFISLAMICFINANCE?WHERECANWESEEKOUTTHATEXPERTISETOBUILDCAPACITY?
