Star Investment Management Ltd

A woman has a sum of £100,000 to invest. She is thinking of giving it to Star Investment Management Ltd to manage on her behalf. Answer BOTH (a) AND (b): (a) On the assumption that star Investment Management Ltd 0 an authorized person under the Financial Services and Markets Act 2000, how would you answer the following questions asked by her? (i) "How do I know the directors of this firm are not crooks?" (ii) "Are there any rules to stop the firm investing my money in inappropriate investments?" (iii) "What happens if the firm breaches a FCA ruler (iv) "What happens if any advice I receive is correct at the time that I purchase the product, but afterwards the product, market value falls?' (v) "In the event that the fine becomes insolvent, do I rank alongside other creditors when it comes to getting my money back?" (b) On the assumption that star Investment Management Ltd is not an authorized person, how would you advise the women who has since suffered loss as a result of advice offered by the firm