...public issues. Transfer of resources from those having idle resources (investors) to others who have a need for them (corporates) is most efficiently achieved through the securities market. Stated formally, securities markets provide channels for reallocation of savings to investments and entrepreneurship. Savings are linked to investments by a variety of intermediaries, through a range of financial products, called ‘Securities’. Which are the securities one can invest in? Shares Government Securities Derivative products Units of Mutual Funds etc., are some of the securities investors in the securities market can invest in. Regulator Why does Securities Market need Regulators? The absence of conditions of perfect competition in the securities market makes the role of the Regulator extremely important. The regulator ensures that the market participants behave in a desired manner so that securities market continues to be a major source of finance for corporate and government and the interest of investors...
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...insurance was subject to certain federal legislation such as the federal antitrust statute. But then the congress responded immediately with McCarran-Ferguson Act. The McCarran-Ferguson Act specifically provides that the regulation of the business of insurance by the state governments is in the public’s best interest. On top of that, the Act states that no federal law should be taken to invalidate, harm or supersede any law enacted by any state government for the purpose of regulating the business of insurance, except the federal law specifically relates to the business of insurance. Even though the state was the main regulator, but federal regulatory influence has always been expanding. The most well known influence was supposed to be dual state legislation, where it happened when a wave of insurance companies insolvencies. But then NAIC (National Association Of Insurance Commissionaire) ruined it by reforming several state insurance regulation. The NAIC basically function as a vehicle for individual state regulators to coordinate their activities and share resources. NAIC was established in 1871, where it functions as an advisory body and service provider for state insurance departments. Commissioners use the NAIC to pool scarce resources; usually they discuss issues of common concern and to align...
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...innovation and the challenges of financial integration. It is felt that the present code of the financial sector need to be reviewed and altered, while keeping in mind the present needs of the economy. This is because most of the laws are very old, there are overlaps and inconsistencies, and there is lack of clarity in terms of regulations due to the presence of a number of regulators. It is also argued that the laws in India are traditionally evolved on a problem by problem basis. With the advent of the New Economic Policy in 1991, substantial economic liberalisation took place in India. Between 1991 and 2002, progress was made in four areas. Firstly, capital controls were substantially reduced to give Indian Firms access to foreign market. Also, a new pension system was evolved and the monopolies of the public sector in the insurance field were broken up. This led to the formation of the new Insurance regulator, Insurance regulator and Development Agency. Additionally, significant increase in the equity market as a mechanism to raise finance by firms led to the formation of the financial market regulator SEBI. Also infrastructure institutions, National stock exchange and National Security Depository were also set up. Although, these moves were taken up in the right direction but they were considered to be inadequate because of the diverse nature of the Indian households and firms. There is a constant need of innovation in its product and processes in the financial sector in...
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...NTRODUCTION The concept of regulating a country s energy sector is more than one hundred years old, having been initiated in America. In later years, Europe also established regulatory agencies for the energy sector having seen the need for dedicated bodies to regulate what is often referred to as the engine of any economy - the energy sector. It has been argued that the steady development of the energy sector in the developing world is partly attributable to the presence of regulatory agencies, specifically focused on that sector. It is therefore not surprising that the developing world has decided to follow suit in recent years. Thus, at present, regulation is a worldwide phenomenon common in both the developed and developing countries. In fact, some countries without regulatory agencies in place feel left behind and are in a hurry to learn from countries with regulators in place. Over the years, the ever-increasing involvement of the private sector has reinforced the need for autonomous agencies to regulate the sector. Regulation has largely entailed balancing the needs of both consumers and utilities. Thus, through regulation, utilities are able to operate in an environment where they can get a reasonable rate of return on their investment, while providing a quality service to consumers. With the advent of regulation, there now exist generally distinct and clear roles for different players in the sector Government formulates policy, utilities provide the services while...
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...It is clear that when the G20 meets in Seoul this November, there should be a firm proposal for the Basel Committee and the Financial Stability Board for dealing with the banking behemoths. Banks should then comply with the new capital requirements agreed by finance ministers by January 1, 2019. The question is, however, whether this is the right path to choose and whether these regulations will be able to prevent the world from any future financial markets crisis. So far, the proposed numbers themselves could hardly be described as tough, as the bounce in bank shares testified. Also, it seems that many important issues are not being addressed at all. (Plenty) But what are the issues that should be addressed? What would be the ideal regulatory state and is it possible to ever achieve it? Let us, first, start with our idea of the “ideal” international financial regulatory plan. After having researched various proposals for the international financial markets regulations, we reached a conclusion that finding the ideal path is going to represent a very difficult task and that none proposed regulation will be able to fit all the states. As mentioned in the article “Financial regulation: More questions than answers” which was posted in Businessline in the end of July, due to the variations in institutional legacies, traditions and systems in individual countries over the world, no one size can fit all. Also, however, we believe that as far as financial stability is concerned within...
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...(some topics may also have been presented in lab). Chapter 1 1. Define anatomy and physiology. 2. Recognize some of the different branches of anatomy and physiology. Be able to list an example of each. 3. Recognize the 11 organ systems. Recognize major organs and 1-2 major functions of each organ system. 4. Arrange the levels of structural organization from the most complex to simple. 5. What is homeostasis? 6. What is meant by the idea that homeostasis is a “dynamic process”? 7. What 2 organ systems are primarily involved in the maintenance of homeostasis? Which responds more quickly? 8. Can you describe an example of the nervous system regulating homeostasis? 9. Can you describe an example of the endocrine system regulating homeostasis? 10. List and describe the 3 basic parts of a homeostatic regulator mechanism? 11. What are characteristics of negative feedback? 12. What are characteristics of positive feedback? 13. Diagram an example of negative feedback. Identify the 3 basic parts in your example. 14. List 2 examples of positive feedback. 15. What is a homeostatic imbalance? What is a possible outcome of homeostatic imbalance? 16. What are general effects of aging on homeostasis? 17. Describe/recognize the anatomical position. Why do we need to understand this? 18. Name/label the major body cavities, their subdivisions, and the major organs contained within (be complete) . 19. What is the structure and function of serous membranes? ...
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...The State Authorization Reciprocity Agreement initiative (SARA) appears to be the most aggressive idea put forward to achieve expansion of higher education in the 21st century. In just a little over one year since SARA was initiated about 28 States and over 350 institutions have joined. The remaining States have either passed legislations to be part of the agreement or are having serious high stake conversation about joining SARA. The Road to the interstate agreement In 2012, the former Secretary for Education Richard Riley led a diverse group of higher education experts, state leaders, accrediting bodies, and education regulators to deliberate on an interstate system for administering distance learning across the country to save cost, streamline...
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...The Pakistan Development Review 41:4 Part I (Winter 2002) pp. 319–332 The Presidential Address Regulatory Framework in Pakistan A. R. KEMAL* I. INTRODUCTIION Until the mid-1970s, governments all over the world (especially in the developing economies), intervened in markets on the pretext of market failure arising from externalities, decreasing cost industries, and equity considerations for maximising social welfare. In Pakistan, where the private sector has played a dominant role, except probably for the 1970s,1 private sector activities have all along been regulated through various types of controls and regulations on entry and exit, prices, credit, foreign exchange, imports, investments, etc. These regulations were imposed with a view to ensuring that private sector allocations were in accordance with the national priorities [see Pakistan (1983-84)]. However, the objectives were rarely realised and, in fact, these regulations have been responsible for red-tapism and corruption. On the grounds of government failure, privatisation and deregulation policies are being practised almost everywhere in the hope that they would help in efficient allocation of resources and higher levels of productivity. Considerable regulatory reforms have also been effected in Pakistan over the last two decades. Investment and import licensing have been withdrawn, most of the foreign exchange restrictions have been removed, capital market regulations have been simplified, price controls have...
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...government intervened deeply into the ‘banking business,’ which was defined by the IRS, FDIC, Comptroller of the Currency, SEC (if public-owned), and State Bank Supervisors etc. * By defining what the ‘business of banking’s was the statutes, regulations, and enforcement personnel administering these laws, bankers were boxed into doing business as defined by state and federal governments. * Still In present day Banks are financial institutions that hold too much control over the economy and if they fail there are enormous consequences hence the need for government bailouts, in which government financial assistance is provided to banks or other financial institutions who appear to be on the brink of collapse. WHY THE NEED FOR REGULATORS * Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. * To create transparency between banking institutions and the individuals and corporations with whom they conduct business. * To reduce the level of risk to which bank creditors are exposed to. * to reduce the risk of disruption resulting from adverse trading conditions for banks causing multiple or major bank failures * to reduce the risk of banks being used for criminal purposes, e.g. laundering the proceeds of...
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...Section: Investing STOCKS & MARKETS Failure by regulators and exchanges to pinpoint what caused wild equities swings on May 6 might sap investor confidence in the stock market As if individual investors lacked reasons to mistrust the stock market, along came May 6's gut-wrenching, 9.2 percent drop in the Dow Jones industrial average. The rapid stock plunge — followed by an equally quick, partial rebound in which the Dow regained nearly half its losses — surprised retail investors. Days later, they are trying to digest the realization that the market action during the so-called "flash crash" has bewildered the pros, too. "I still haven't heard a satisfactory answer as to what happened and what could be done about it," said Frank C. Boucher, who heads a financial planning firm in Reston, Va., on Monday, four days after the market's drop. The U.S. Securities & Exchange Commission, charged with regulating the stock market, has offered no explanation. SEC Chairman Mary Schapiro met with the heads of six major exchanges on May 10. According to an SEC statement, a main part of the agenda was "discuss[ing] the causes of Thursday's market events [and] the potential contributing factors." A U.S. House of Representatives subcommittee is expected to examine the reasons for the stock plunge at a hearing on May 11. Among possible causes, media analysts and traders have cited erroneous trades, currency spikes, market regulations, and high-frequency, computerized trading. no "single...
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...requirements of their business” (May 1934, 80). The argument behind this notion is that the natural market forces or the “invisible hand” of the market will ensure self-regulation. Ross (1979, 379) implies this when he writes, “…disclosure regulations are generally neither required nor desirable, since left on their own, firms will have incentives to report accurately”. The belief that firms have internal incentives to report accurately is the crux of signalling theory. This theory holds that firms can increase their value through full disclosure and firms that fail to disclose will be seen in a negative light. Hence, every firm has reason to engage in financial reporting in order to lower its cost of capital. This incentive makes it a self-regulating system with no need for outside intervention as firms...
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...Interest Theory” aims to satisfy the needs of the Tax authority. Also the standard setters of ”The social Contract Theory” must reflect w composition of society affected by the standard and by the environment they apply. 10-How does good financial reporting add value to organization? Good financial reporting results on accurate information which enhances the image of the organization consequently motivate investors, accountability with creditors and help manager to evaluate the performance of the company. 13-In your opinion, do the benefits from regulating accounting information outweigh the costs? Justify your answer. The benefits resulting from the regulating accounting information are: * Increased efficiency in allocating capital. * Cheaper production of accounting information. * Check on perquisites. * Public confidence. * Standardisation. * Public good. * Comparability The costs related to the regulating accounting information are: * The imposition of the requirement of standard accounting system on different entities. * Advantages of certain interest group through lobbying. 15- In fact accounting standards setting is a two-edged sword : Positive: The standardization of accounting will reduce...
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...financial crises have come into the existence. Attention has been drawn into the debate between those who support or call more regulations of the private sector to protect public goods and those who argue for reducing or eliminating such regulations which are based on regulations would do further damage to the economy by restricting business. Another important area to be considered is about the regulations been captured. The theory of regulatory capture or capture theory argues that although regulations might be introduced to the aim of protecting the public interest, it will not be ultimately achieved because in the process of introducing regulations the organizations that are subjected to the regulation will finally come to control the regulators. There is ample evidence to prove that regulatory capture is taken place in a variety of forms. The scenario of Dr. Batterhams role is reviewed in this regard. Dr. Batterham was the chief scientist and mean while he held the position of chief technologist for Rio Tinto. This dual role made the senate committee to recommend the position of federal governments chief scientist should be full time after the found there was a conflict of interest between the two job roles. The role of chief scientist also included to assist in assuring the public interest in science and technology is converged to national priority issues . Every individual on earth applauds regulations immune to capture. It arguments the economy to the highest notch. It...
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...PBL 5: ROLE OF THE ORGANIZATION Bursa Malaysia (http://www.bursamalaysia.com) Bursa Malaysia is the frontline regulator of the Malaysian capital market and has the duty to maintain a fair and orderly market in the securities and derivatives that are traded through its facilities. As an integrated exchange, Bursa Malaysia also has the duty to ensure orderly dealings in the securities deposited with Bursa Malaysia, and orderly, clear and efficient clearing and settlement arrangements for transactions cleared and settled through its facilities. In furtherance of these duties, Bursa Malaysia has put in place a comprehensive and effective regulatory and supervisory framework to regulate the market and its participants, including the listed issuers and their directors and advisers, Participating Organisations, Trading Participants, Clearing Participants, Authorised Depository Agents and Authorised Direct Members. In this respect, Bursa Malaysia has issued various sets of rules to stipulate the requirements that need to be met by the regulated entities either upon admission and/or on a continuing basis. It administers and monitors compliance with these rules and takes strict, prompt and objective enforcement action for breaches of these rules. Bursa Malaysia actively supervises the listed issuers and the brokers. It also undertakes surveillance over the trading activities in the marketplace. Bursa Malaysia’s overriding objectives, in addition to discharging its statutory...
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...accountancy CBEB 2102 financial management Group Member: Isabelle Chong Sim Yi – CEB 110017 Li Ying – CEB 110716 Yap Hong Zhen – CEB 110084 ------------------------------------------------- University malaya faculty of business and accountancy CBEB 2102 financial management Group Member: Isabelle Chong Sim Yi – CEB 110017 Li Ying – CEB 110716 Yap Hong Zhen – CEB 110084 GROUP REPORT 1 GROUP REPORT 1 Table of Contents Question No. | Details | Pages | 1 | Describe the roles and functions of financial markets in Malaysia. | 1 | 2 | Identify four (4) relevant regulators in Malaysia. | 1 | 3 | Choose two (2) regulators identified in (2) above and justify your selection i.e. explain the reasons for your choice. | 2 | 4 | Explain the roles and activities of the two regulators that you have chosen. | 2 | 5 | Give examples of actual enforcement actions that have been taken by the regulators chosen in (3) above. | 3 | 6 | References | 4 | 1) Describe the roles and functions of financial markets in Malaysia. Financial markets are forums in which suppliers of funds and demanders of funds can transact business directly. There are two operations of financial markets, which are primary market and secondary market. Primary market is financial market in which securities are initially issued; the only market in which the issuer is directly involved in the transaction. The function of the primary markets is to facilitate the efficient allocation of funds. Secondary...
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