The supervisory culture at the FSA is often characterised by a series of overarching approaches and themes, such as ‘more principles-based regulation’ and ‘Treating Customers Fairly’. The FSA Handbook, a set of rules to which regulated ﬁrms are subject, becomes increasingly prescribed by EU legislation. This is aided by the FSA’s move to the socalled ‘copy-out’ approach, transposing directives word for word, where possible, in order to avoid ‘gold-plating’. The FSA grows in size and cost through greater activity for the Financial Ombudsman Service and increasing calls on the Financial Services Compensation Scheme, fuelled by a growing number of consumer complaints especially around bank charges and payment protection insurance. The FSA also increases its enforcement activity, especially on market issues and in terms of stepping up ﬁne sizes.
This thesis assesses the value that financial advisors provide to clients using a unique panel datasheet on the Canadian financial advisory industry.
The general objective of this policy paper is to deeply understand the latest and most influential financial reforms and the current financial environment in U.S through relatively comprehensive analysis with regard to the Dodd-Frank Act. In doing so, I move forward to provide some suggestions on improving the relevant legislature.
The aim of this report is to investigate the Douglas Harvey Barber v Guardian Royal Exchange case. The main findings of this report is to see what effect Douglas Harvey Barber had on the financial services industry before and after his case.
This paper is an analysis of the Financial Planning and Advice industry and the Department of Labor’s recently finalized law regarding the definition of an “Investment Advice Fiduciary”. The secondary focus will be on the company Robinhood Financial, LLC.
Analysis: The second largest United States financial firm, Wells Fargo was accused of having dishonest business practices. The company was fined for putting pressure on its investment brokers to sell loans to their clients (Zacks, 2016). This type of business is dishonest as well as unethical for any business. Morgan Stanley’s approach was to have internal sales contests and provided cash incentives worth up to $5,000 for selling securities bases loans (Zacks, 2016). This type of loan is an asset based loan which allows the investor to borrow cash against their securities. As many as 30 advisors took into the practice internally and the company reached $24 million in new loan assets (Zacks, 2016).
The Financial Conduct Authority (FSA) said that customers had been ‘ given misleading and unclear information about the policies’. And the new financial markets regulator said that the
The reasons why the regulatory framework is exists is to describe the Financial Services Commission of Ontario (FSCO), how the FSCO fulfills its mandate by achieving regulatory outcomes, FSCO’s core regulatory activities and the principles that FSCO follows when conducting regulatory activities. In the financial services that FSCO regulates, expectations are one of the things that play a very important role. All the customers expected to be treated nicely, fairly and their money from the future pension must be secured. They expect more financial products and more services that should meet the public’s needs from FSCO. The regulatory framework will do its job by summarize the expectations of FSCO from businesses or some individuals that work
In more recent times, Australia has seen two major waves of financial reform. The first wave, in the1970s and 1980s, involved a major deregulation exercise which transformed
Financial regulation is highly significant to a nation in order to maintain the integrity of a financial system by creating guidelines for banks, brokers and investment companies. The financial regulatory authorities within Australia include: The Reserve Bank of Australia (RBA), Australian Securities and Investments Commission (ASIC), Australian Prudential Regulation Authority (APRA), the Australian Treasury and the Council of Financial Regulators (CFR). These institutions play an important role in Australia’s economy, responsible for consumer protection and the regulation of investment banks and finance companies.
With 10 years of brokerage experience under his belt, Stan Smith knows that sometimes it’s better to be small, instead of being known by all. In an industry overflowing with specialists vying for their next commission check, Smith understands that close-knit client relationships are the foundation for any successful retirement solution. Taking on each task with a full admiration of family values and the importance of your future, he emphasizes the value of a dollar; and takes every step necessary to ensure that yours is not lost.
Notably, PS 7.5 places great significance on the on financial planner’s duty of loyalty towards their client and the “not to profit without informed consent rule”. (Australia, 2013) (Government, 2011) Mr Nguyen and Mr Gillespie consistently generated excess individual profits through the intentional disregard of their client’s involvement. PS 7.6 deals with the suitability of services rendered towards the client’s specific wants and needs. The high degree of commonalty exhibited in the risk profiling of their clients expresses the lack of professionalism shown by Mr Nguyen and Mr Gillespie, as well as an evident conflict of interest. The actions of Mr Nguyen and Mr Gillespie are also in direct violation of the rules relating to PS 7. Both parties actively engaged in fraudulent behaviour, consistently deceiving and misleading their clients, in order to gain financially (Adele Ferguson, 2013).
The advice is suitable for the customer having regard to the information provided in relation:
This kind of attitude will renew the confidence in the industry among the consumers and will ensure that the clients would get the best quality assistances. This would in turn create a trend that would discourage any bad apple in the industry from being unethical or unprofessional. It is a fantastic new beginning for present financial planning industry and for those looking to join the industry, as any customer or potential customer would have a renewed confidence in the financial advisors who have taken up the task to meet the new standards. They will be rest assured that they are engaging with advisors that meet the highest standards and would trust them with their future financial security. Only with collective efforts and contribution from the whole financial planning society that there can be a change in the mindset of the consumers. This will be wonderful for not only individual Australians but for the whole
As a licensed professional in the financial industry that endures extreme regulatory pressure, I have built a fulfilling career and developed a wide range of skills in Client Service and Compliance in the Brokerage/Wealth Management firms by balancing exceptional investigative skills with a keen eye for detail and utilization of resources to promptly deliver efficacious results.