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
(a) A usual cash flow diagram will incorporate the following. If you are short the CDO and then you receive a fixed amount at the initial point t o . After that you make paymen

On January 1 a bond with face value of $1,000 is for sale in the market.  That bond has a coupon rate of 6%, pays interest only once a year and the end of the year, and matures at

A callable bond is similar to an Option-free bond with a call option from the bondholder. It can be thought of as the sale of a call option by the investor

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

What are the techniques of financial management There are two widely-discussed techniques: (i) Profit maximisation approach and (ii) Wealth maximisation approach.

What theoretical share price share for share exchange Establish what theoretical share price may be after the merger in a share for share exchange incorporating the effects of

Question 1: (a) Advise a risk averse individual whether to invest his capital in a money market or capital market. Justify your answer. (b) Explain five types of Money marke

Q. What is Installment Credit? This is another method by which the assets are purchased and the possession of goods is taken immediately but the payment is made in installments

A mortgage may be defined as a pledge of property to secure a debt payment; in this context, we will use the term property to mean real estate. If the

What are the misconceptions about Financial Management?