Australian securities and investment commission, Financial Management

Australian Securities and Investment Commission:

The Australian Securities and Investment Commission (ASIC) is an independent government body established by the ASIC Act 1989. Originally, it came into effect on 1st January 1991 as an ‘Australian Securities Commission (ASC). It replaced the National Companies and Securities Commission (NCSC) and the Corporate Affairs offices of the states and territories. It's function is to regulate financial markets, securities, futures and corporations. On 1st July 1998, the ASC was replaced with ASIC making it responsible for consumer protection in superannuation, insurance, and deposit-taking - in 2002, the responsibility has been extended to credit.

ASIC regulate Australian companies, financial markets, financial services organizations and professionals who deal and advise in investments, superannuation, insurance, deposit-taking and credit.

ASIC makes many decisions concerning corporations, securities and financial products and services that are provided to consumers. If ASIC has made a decision then the rights are also connected to such decision. In fact, what ever it does, its ultimate purpose is consumer/investor protection.

History of ASIC

In March 1997, the report of the Financial System Inquiry (the Wallis report) was released. This was termed a major inquiry into the regulation of Australia's financial system. In its report, it came to a conclusion that the financial system in Australia is undergoing continuous and rapid change, involving convergence, increased openness, increased competition and globalization.

These changes are primarily driven by three interlinked forces:

  • Changing customer needs;
  • New technologies and skills; and
  • Changes to regulation across a broad spectrum.

The report gave its final recommendation as

"In the financial system, specialised regulation is required to ensure that market participants act with integrity and that the consumers are protected. The financial system warrants specialized regulation due to the complexity of financial products, the adverse consequences of breaching financial promises and the need for
low-cost means to resolve the disputes."

The Australian government, while accepting this recommendation, said that there exists a number of disadvantages on having a variety of regulatory agencies made responsible for consumer protection. It includes

  • regulation was inconsistent across the range of competing financial products;
  • financial services providers faced a range of different regulatory rules that raised the complexity and cost of compliance; and
  • consumers faced inconsistent rules resulting in difficulties in understanding and comparing competing products.

 

Posted Date: 9/11/2012 2:51:50 AM | Location : United States







Related Discussions:- Australian securities and investment commission, Assignment Help, Ask Question on Australian securities and investment commission, Get Answer, Expert's Help, Australian securities and investment commission Discussions

Write discussion on Australian securities and investment commission
Your posts are moderated
Related Questions
Fundamentals of Structured Product Engineering 1. (a) Let r m denote the m month swap rate (or Libor rate). Subsequently the 3 × n month forward rate f (3 ×n )

Reinvestment risk is the risk involved in reinvesting the proceeds received from the issuer against callable bonds. During falling interest rate periods, investor canno

caselets of bajaj electronics

The Relationship between Futures Price and Cash Price Any commodity that can be bought in the market has a price, which is referred to as cash or spot price for immediate deliv

An analyst should first examine the issuers debt structure in order to analyze the tax-backed debts. The debt burden consists of respective direct a

Which type of insurance company generally takes on the greater risks: a life insurance company or a property and casualty insurance company? The risks protected in opposition to

Observed yield on strips can be used to construct an actual spot rate curve, but it is not free from drawbacks. There are some problems with this; first, the liqu

A computer products store stocks color graphics monitors, and the daily demand is normally distributed with a mean of 1.6 monitors and a standard deviation of 0.4 monitor. The lead

Q. Working Capital as a Percentage of Net Sales? This approach to estimate the working capital requirement is based on the fact that the working capital for any firm is directl

Your friend Peter is planning to set up a new business which will manufacture and sell wooden tables. The parts that make up the table consist of a wooden table top measuring 1m by