Legal framework-asic, Financial Management

Legal Framework

ASIC, in order to equip itself with its wide-ranging functions, is empowered with additional resources and new legislative powers. Towards this, the Australian Securities and Investments Commission Act, 1989 was amended to mirror the consumer protection provisions of the Trade Practices Act, 1974. Further, ASIC inherited a set of legislations covering the finance sector, i.e., general insurance, life insurance, superannuation and banking, rather than gaining new legislative provisions and powers as envisaged by the Wallis Report.

On 11 March 2002, the Financial Services Reform Act, 2001 (FSR Act) came into effect, making extensive amendments to the Corporations Act and other legislation covering the financial sector. The FSR Act implements, among other things, the Wallis Report proposals that there be a single licensing regime for financial services providers and consistent and comparable financial products disclosure. As a result of these amendments to the FSR Act, ASIC has been made responsible for regulating and enforcing a uniform framework for a wide range of financial products and financial services providers.

The Australian Securities and Investments Commission Act, 2001 requires ASIC to:

  • uphold the law uniformly, effectively and quickly;
  • promotes confidence and informed participation by investors and consumers in the financial system;
  • gives information about companies and other bodies available to the public; and
  • improves the performance of the financial system and the entities within it.

ASIC administers the following legislations (or relevant parts of it), as well as relevant regulations made under it:

  • Corporations Act, 2001.
  • Australian Securities and Investments Commission Act, 2001.
  • Insurance Contracts Act, 1984.
  • Superannuation (Resolution of Complaints) Act, 1993.
  • Superannuation Industry (Supervision) Act, 1993.
  • Retirement Savings Accounts Act, 1997.
  • Life Insurance Act, 1995.
  • Medical Indemnity (Prudential Supervision and Product Standards) Act, 2003.

 

Posted Date: 9/11/2012 2:55:40 AM | Location : United States







Related Discussions:- Legal framework-asic, Assignment Help, Ask Question on Legal framework-asic, Get Answer, Expert's Help, Legal framework-asic Discussions

Write discussion on Legal framework-asic
Your posts are moderated
Related Questions
Explain how the special drawing rights (SDR) is constructed. Also, discuss the circumstances under which the SDR was created. Answer:   SDR was made by the IMF in 1970 as a new r

1.  Find out the present value of Rs. 10,000 to be required after 4 years if the interest rate is 6%. 2.  A Firm can invest Rs. 10,000 in a project with a life of three years.

Fixed income security is a financial obligation of an entity, which promises to pay a pre-specified amount of money at per-specified date. Debt securities (

Role of Custodians The Securities and Exchange Board of India on 5th May, 1996, through its notification No.S.O.344 (E) has issued the SEBI (Custodian of Securities) Regulation

When considering how working capital is funding it is useful to divide assets into permanent current assets, noncurrent assets and fluctuating current assets. Permanent current ass

A debt obligation that is issued and traded both in the US bond market and the Eurobond market is referred to as global bond. For an entity to issue global bonds,

Explain Hard capital rationing and Soft capital rationing The NPV decision rule to admit all projects with a positive net present value requires the existence of a perfect cap

Spreads The difference between two futures price is referred to as ‘spread'. For the same underlying good, if there are two different prices on two different expiration dates, t

Question: A 10-year deferred life assurance policy with variable benefits is issued to a select life aged 36. The policy provides the following benefits:- Sum assured is

Citilink has just completed its 2010/11 management accounts. The directors are going to review the financial statements in the next board meeting. You have to prepare a FINANCIAL