Tim is an ‘authorised representative’ of two ‘financial services licensees’: – Jennifer: who provides home contents insurance; and – Commonwealth Pty Ltd: which sells home contents insurance and life insurance. Tim provides advice in relation to home contents insurance to a client, Natalie, and he misleads her into believing that the policy does not have any exclusion clauses. He notes that he is acting as a representative of Jennifer and Commonwealth Pty Ltd. Natalie purchases the insurance based on his advice. However, she suffers a loss due to the misrepresentation of Tim.
Advise Jennifer, Tim and Commonwealth Pty Ltd (separately) about their liability to Natalie? (15 Marks)