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
Determine the example of Future Value of an Annuity An annual payment of 7000 $ is invested at 5% per annum compounded yearly. What will be the amount after 20 years? Solut

What is Rationale and behind profitability maximisation Rationale & behind profitability maximisation, as a guide to financial decision making, is simple. Profit is a test of e

QUESTION 1 Part A i) Define the terms finance lease and operating lease and explain how you would distinguish between the two leases ii) When accounting for fina

FEATURES OF A BUDGET a.         It is prepared for a specific period. b.         It is expressed in quantity or money or both. c.         It is a statement describing ob

How can we calculate ration analysis in financial management?? Determine the ration analysis? Need assignemt help on this topic

Assume that ABC is considering opening an ice cream shop in Amsterdam. The shop will cost 1.8 million Euros, and the present value of the expected cash flows from the store is 1.4

Explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate. Answer:  the conditions when forward exchange rate

As we know, zero-coupon bonds are issued without any periodic coupon payments. The investor gets the interest and the principal on a maturity date. The interest i

Describe the general pattern of cash flows from a bond with a positive coupon rate. Cash flows from a bond along with a positive coupon rate contain periodic interest payments an

1. Let's look at the cash flow of the volatility (variance) spread swap: - ( σ 2 Nasdaq - σ 2 S & P 500 ) N 2 It is noticeable from this expression that investor