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

What do you mean by wealth maximization, Q. What do you mean by Wealth Maxi...

Q. What do you mean by Wealth Maximization? This is also known as value maximization or net present worth maximization approach, it takes into consideration the time value of m

What do you meant by common stocks in the financial term, What do you meant...

What do you meant by common stocks in the financial term? Common Stocks: Common stocks illustrate ownership interests into the firm. Common stockholders obtain dividends (wh

Determination of spread, Determination of spread Daily interest rate = ...

Determination of spread Daily interest rate = 5.11/ 365 = 0.014% per day Variance of cash flows = 1000 × 1000 = $1000000 per day Transaction cost = $18 per transaction

Brigham, how do legal consideration affect a firms credit policy

how do legal consideration affect a firms credit policy

Explain the procedure to find out irr, Q. Explain the Procedure to Find Out...

Q. Explain the Procedure to Find Out IRR? Procedure to Find Out IRR:- Step I : Compute the fake payback period   Fake Payback Period = Initial Cash Outflows / A

Credit analysis for formulation of optimum credit policy, Q. Credit Analysi...

Q. Credit Analysis for Formulation of Optimum Credit Policy? Credit Analysis: - Credit Analysis is made to estimate the credit worthiness of the customers before making credi

., Identify and explain the key stages in the capital investment decision-m...

Identify and explain the key stages in the capital investment decision-making process and the role of investment appraisal in this process.

Parallel trade, Parallel T rade It is a form of countertrade th...

Parallel T rade It is a form of countertrade that involves the execution of 2 distinct and individually enforceable contracts: the first for the sale of goods by an exp

Is book value the best proxy to the value of the shares, Is book value the ...

Is book value the best proxy to the value of the shares? No. According to A6 it would be a miracle if the number that appears in the Shareholders' Equity had anything to do wit

Calculate the optimum amount of funds to transfer, Q. Calculate the optimum...

Q. Calculate the optimum amount of funds to transfer? The Baumol model is derived from the EOQ model and is able to be applied in situations where there is a constant demand fo

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