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A client seeking a monthly return of R3000 p.m. was advised to invest R250 000 i...

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A client seeking a monthly return of R3000 p.m. was advised to invest R250 000 in an investment company for a year. The client was unaware that the company was unlicensed. When the return failed to honour, the client sought answers and attempted to withdraw his funds. The company had by then been placed into liquidation. The advisor did not provide information regarding the nature of the investment and the status of the firm to the client. The client’s expectation of a high return and the promise to achieve these returns appears to have attracted the client into undertaking the investment with the minimal amount of information. Which outcome of TCF was contravened?

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