Regulatory framework abroad, Financial Management

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

 

Posted Date: 9/11/2012 2:32:02 AM | Location : United States







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

Write discussion on Regulatory framework abroad
Your posts are moderated
Related Questions
Emily Jill Rogers  is planning to buy a house but needs assistance as to how she will finance the purchase. She has supplied you with some information and asked you to help her wit

Explain how to measure the firm risk of a capital budgeting project. The firm risk of a capital budgeting project calculates the impact of adding a new project to the existing pr

Five Cs of Obtaining Credit The five crucial parts lenders examine previously issuing credit include: 1. Character.    This is a calculation of the borrower's integrit

Assume that you have been consistently impressed by David and Tom Gardner of The Motley Fool since you first heard of their rather improbable rise to prominence in financial circ

Financial Management and Materials Department The materials management is of utmost importance in a manufacturing firm and covers the areas such as procurement, storage, mainte

JB has recently joined the Finance Department of P Company as a trainee management accountant. As part of the Company's induction, she has been offered a mentor. Though, since JB h

I need a paper on the financial status of the company under armour with ratios using information from yahoo.com finances. & Id like to provide a document with further details

Q. What is Emerging Issues Task Force? Emerging Issues Task Force (EITF) - Assists FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) and provides guidance on early identification of

this case has been framed in order to test the skills

Question 1: You hold a diversified portfolio consisting of a Rs.5,000 investment in each of 20 different common stocks. The portfolio beta is equal to 1.15. You have decided t