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As an operator within financial services, describe (100–120 words) your obligations as an individual under the...

As an operator within financial services, describe (100–120 words) your obligations as an individual under the Australian laws, codes and regulations as described in this section.

Solutions

Expert Solution

The Australian Securities and Investments Commission (ASIC) regulate consumer protection in relation to financial products and services.

ASIC's regulatory guidance on compliance with the financial services regime.

The Corporations Act 2001 imposes:

· a single licensing regime for financial sales, advice and dealings in relation to financial products,

· consistent and comparable financial product disclosure,

· And a single authorization procedure for financial exchanges and clearing and settlement facilities.

The regulatory framework covers a wide range of financial products including securities, derivatives, general and life insurance, superannuation, margin lending, carbon units, deposit accounts and means of payment facilities.

We have released regulatory guidance in relation to the Future of Financial Advice (FOFA) reforms. We are continuing to monitor the progress of the relevant regulations, in light of ongoing government review of these reforms.

Australian laws and Code

The Commissioner’s recommended approach allows industry codes approved by ASIC to “include ‘enforceable code provisions’, which are provisions in respect of which a contravention will constitute a breach of the law”.

Following cover by the new enforceable codes regime.

The Commissioner recommended extending ASIC’s power to approve codes to all APRA-regulated institutions and ACL holders. Currently, ASIC can only approve industry codes of conduct that relate to the activities of:

• Australian financial services (AFS) licensees;

• authorized representatives of AFS licensees; or

• Issuers of financial products.

Regulatory authorities in Australia

Confidence in the operation of the companies within ASX Group is reinforced by the whole-of-market regulation undertaken by ASIC across all trading venues and clearing and settlement facilities, as well as the financial system stability oversight by the RBA of ASX’s clearing and settlement facilities. ASIC also supervises ASX’s own compliance with the ASX Listing Rules as a listed company.

Additional responsibility for regulation of the Australian financial system lies with Treasury and APRA. Together with ASIC and the RBA, these four entities comprise the Council of Financial Regulators in Australia.

The Australian Securities and Investments Commission

ASIC is responsible for the supervision of real-time trading on Australia’s domestic markets, including those operated by ASX Group, and for enforcing the laws against misconduct on Australia’s financial markets, as well as supervising Australian Financial Service Licence (“AFSL”) holders. More information about ASIC is available at www.asic.gov.au.

The Reserve Bank of Australia

The RBA has responsibility for assessing whether licensed clearing and settlement facilities, including those operated by ASX Group, have complied with the RBA’s Financial Stability Standards (“FSS”) and done all other things necessary to reduce systemic risk. More information about the RBA is available at: www.rba.gov.au.

Treasury

The Department of the Treasury is an Australian Federal Government department which develops economic policy. Treasury works with the RBA, ASIC and APRA on the Council of Financial Regulators. More information about Treasury is available at: www.treasury.gov.au.

The Australian Prudential Regulatory Authority

APRA is the prudential regulator of the Australian financial services industry and is a member of the Council of Financial Regulators. More information about APRA is available at: www.apra.gov.au.

Council of Financial Regulators

CFR is the coordinating body for Australia’s main financial regulatory agencies. Its members are the RBA (Chair), ASIC, APRA and Treasury.


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