Regulatory framework abroad, Financial Management

Assignment Help:

Regulatory Framework Abroad

A regulatory mechanism, in terms of finance, is the mechanism to regulate the working of the financial system. Its function is to ensure the compliances in terms of regulations of the Central Bank, commercial banks, financial institutions, insurance companies, non-banking financial institutions, exchange houses and official credit institutions. It is also entitled for the supervision of the compliances of these regulations. It inspects and supervises issuers registered in the Public Stock Registry. It supervises the compliances with the dispositions applicable to the Pension Savings System and Public Pension System. More particularly it supervises the administrative functions for Pension Funds, the Public Employee Pension Institute and the Social Security's Disability, Old Age and Death Program.

A regulatory body, in the context of financial markets, is a regulator for ensuring that the financial markets are fair, efficient and transparent. It strives to reduce the systemic risk to protect the investor.

The regulator should aim for:

  • Minimizing the financial loss of bank depositors or insurance policy holders or the like.
  • Enforcing the relevant/applicable laws.
  • Prosecuting the persons involved in market misconduct cases like insider trading.
  • Granting licenses to the providers of financial services.
  • Protecting the clients through investigating the complaints without any bias.
  • A regulator should follow certain principles. The regulator should be:
  • Be clear in its responsibilities which ought to be unbiased.
  • Operate independently having accountability in the exercise of its powers and functions.
  • Adopt clear and consistent regulatory processes.
  • Observe the highest professional standards including appropriate standards of confidentiality.

Examples of the important financial regulators regulating the money and capital markets are:

  • Federal Bank, USA
  • U.S. Securities and Exchange Commission (SEC), USA
  • Investment Dealers Association of Canada (IDA), Canada
  • Financial Services Authority (FSA), UK
  • Authorite des Marches Financiers (AMF), France
  • Financial Supervisory Authority, Sweden
  • The Australian Prudential Regulation Authority (APRA), Australia

 


Related Discussions:- Regulatory framework abroad

Revenue bonds, Revenue bonds are the securities issued for financing ...

Revenue bonds are the securities issued for financing an entity for general      public-purpose. The securities issued for entity financing are backed up with the

Explain the rapid development of interest rate swap market, If the cost ben...

If the cost benefits of interest rate swaps would similarly be arbitraged away in competitive markets, what other descriptions exist to explain the rapid development of the interes

Provide three examples of mutually exclusive projects, Provide three exampl...

Provide three examples of mutually exclusive projects. Mutually elite projects are projects that compete against each other for our selection.  If a firm were considering the b

State about the country analysis and political risk, Country analysis and p...

Country analysis and political risk Country analysis could use tools for example PEST factors in order to strategically analyse countries. Political risk

Financial leverage, paid-up equty 100000 earning of the company 10000 praic...

paid-up equty 100000 earning of the company 10000 praice - earning ratio(PIE) 20 no.of equty share

Types of rating - sovereign rating, Sovereign Rating This...

Sovereign Rating This includes rating a country as to its creditworthiness, probability of default, etc.

Determine the rate for computer-based central office switch, SWBT Company m...

SWBT Company must decide whether to repair a telephone company computer-based central office switch or purchase a new one. The existing switch originally cost $750,000 and is fully

Revenue bonds, A revenue bond is a special type of municipa...

A revenue bond is a special type of municipal bond distinguished by its guarantee of repayment from revenues generated by a specifie

Cost of sales and functioning costs, Entity A is significantly smaller than...

Entity A is significantly smaller than B in terms of revenue and would not impact LOP's revenue to the same extent. However A earns a noticeably better gross profit margin at 26% a

China emerged as second most significant recipient of fdi, How would you de...

How would you describe the fact that China emerged as the second most significant recipient of FDI after the United States in recent years? Answer: China attracted a large deal o

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd