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

Determine the analytical procedures of auditors, Analytical procedures of a...

Analytical procedures of auditors Auditors must apply analytical procedures at the planning and overall review stage of audit. Analytical procedures include the considerati

What are the failure of mergers and takeovers, Failure of mergers and tak...

Failure of mergers and takeovers Failure of mergers and takeovers Poor strategic plan will result in slow or failed integration. Integra

Type of hedge funds, What are the Types of Hedge Funds? Please provide me r...

What are the Types of Hedge Funds? Please provide me report on Types of Hedge Funds.

Hedging strategy, Crown Co. is expecting to receive 100,000 British pounds ...

Crown Co. is expecting to receive 100,000 British pounds in one year. Crown expects the spot rate of British pound to be $1.49 in a year, so it decides to avoid exchange rate risk

Financial crisis , a)  Tonddu plc is expected to report record earnings of ...

a)  Tonddu plc is expected to report record earnings of £120m next year.  It has grown rapidly over the last few years, the growth has been achieved by maintaining a high level of

Determine the objectives of profit maximisation, Determine the objectives o...

Determine the objectives of Profit maximisation Profit maximisation remains one of the key objectives for the managers of the companysince many managers' compensations are lin

What do you mean by pension funds, What do you mean by pension funds? ...

What do you mean by pension funds? Pension funds: Pension funds give retirement income (as the form of annuities) to workers covered through a pension plan. They get cont

What do you mean by misappropriation of fund, Q. What do you mean by Misapp...

Q. What do you mean by Misappropriation Of Fund? Misappropriation Of Funds allotted for specific works under capital or Revenue demand but the expenditure is incurred for anoth

What is risk adjusted discount rate, Q. What is risk adjusted discount rate...

Q. What is risk adjusted discount rate? The risk adjusted discount rate includes two rates viz (i) Risk-free rate: - Risk free rate is the usual rate or the usual discount r

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