ROLE OF FINANCIAL MARKET AUTHORITY(FMA)
In this essay my aim is to discuss and compliment the various roles of financial market authority in corporate business world. My research will depict that Financial market authority (FMA) has been emerged as a financial regulatory authority which regulates and controls the capital market and the financial services in New Zealand very effectively and efficiently. And it works on the financial risk bearing factors and majorly contributes towards developing trustworthy, clear and well regulated financials markets by executing various roles. In order to address the ever existing issues of divided regulatory body, the ultimate aim of creation of FMA by the Government of New Zealand was to replace security commission.
Further the Primary objective of creating new single operator was to unify the market administration activities as the security commission faced many criticisms and faltered on the main function of regulating the market in order to give stability to the financial sector and thus resulted in ceasing of security commission. In 2011, when the financial markets authority act 2011 (FMC ACT) has been sanctioned and came into action on 1 may 2011, certain changes were made and one of the most important changes by this enactment is the introduction of new reinforced regulatory body. The FMA was designated under the crown entity act 2004, with supreme powers to monitor and control the financial markets by revoking the authorities of
1980s Introduction of the modern regulatory system; self-regulation among asset managers, statutory oversight of banks and insurers. The Financial Services Act 1986 (FSA 1986) marks a step change in the nature and extent of UK investment business regulation. April 1988 sees the introduction of a regulatory system that has investor protection as its main aim. The system is based on five selfregulating organisations (SROs);48 membership organisations tasked with the creation, monitoring and enforcement of rules for their respective members. The SROs cover five different areas of financial services; futures broking and dealing, financial intermediation, investment management, life assurance broking
Finally, in order to complete a more accurate comparison between the two projects, we utilized the EANPV as the deciding factor. Under current accepted financial practice, NPV is generally considered the most accurate method of predicting the performance of a potential project. The duration of the projects is different, one lasts four years and one lasts six years. To account for the variation in time frames for the projects and to further refine our selection we calculated the EANPV to compare performance on a yearly basis.
The US Securities and Exchange Commission (SEC) is the US federal agency that holds the primary mandate to enforce federal securities laws and regulations to control the securities industry and the country’s stock exchange and regulation of all activities and organizations including the US electronic securities market. The SEC is committed to promoting a market environment that yields public trust characterized by integrity to attain its mission of protecting investors through maintenance of fair and efficient markets through facilitation of capital information (Basagne, 2010). The SEC financing is a major area of focus since there has been major concern regarding the SEC agency financing and whether they utilize the
1.What are conversion factors? Why were conversion factors developed? How do they impact on which bond is cheapest to deliver? Under what conditions would there be no cheapest to deliver? Explain in detail.
-Martin Industries just paid an annual dividend of $1.30 a share. The market price of the stock is $36.80 and the growth rate is 6.0 percent. What is the firm's cost of equity?
The purpose of the textbook, Who Rules America? by G. William Domhoff, is to explain his theory of Class Domination. My essay emphasises the relation of social class to power, the existence of a Corporate community, the relationship of the Corporate community to the upper class, and various methods used by the Corporate community to dominate the U.S Political System. Furthermore, my essay will discuss the potential limits to corporate power in America.
The government regulation of the financial industry by the Dodd-Frank Act was the most compelling topic of this class. A financial regulatory process was created which limits risk through the enforcement of transparency and accountability. The main objective of the Dodd-Frank Act was to provide regulation to banks that was more stringent. The FSOC was created as a result of the Dodd-Frank Act. The two main objectives of the FSCO was to stop the occurrence of another recession and to resolve persistent issues. The elimination of bailouts funded by taxpayers was another important element of this act. The CFPB also known as the Consumer Financial Protection Bureau was created as a result of the act. The consolidation of consumer protection responsibilities
When governments amongst nations conduct in international business, it exposes them to increased risks and costs through unfair trade and bribery in order to obtain a competitive advantage or power. Mercantilism explains why the government intervention of international business increases the chances of these risks. Mercantilism is the theory that explains, the government will maintain their economy and trade to promote their own domestic industry at the cost of the other country leading to unfair trade (Pettinger,2016). As all governments will not play by the same rules, there is an increase in risks such as unfair tariff policies or bribery in order to gain a competitive advantage. In fact, many governments across nations will use these unfair actions to gain an increase in power. Hill (2015) states that nations like China are striving for a more neo mercantilist policy (a more modern theory of mercantilism where economic power is the equivalent to a trade surplus) to gain a trade surplus. During most of the 2000s, their exports have been increasing whereas their imports have not grown because they have been limited by an import substitution policy. While China is able to benefit from the trade surplus, it is at the cost of another nation where the money that will be paid for those imports will decrease. Therefore, government intervention in international business increases risk like unfair trading to gain a competitive advantage. The government also increases the cost of
I agree that the free market would run into serious problems undercutting its sustainability without regulation; however, the free market is as much a creation of the state that is highly influenced by interest groups. Interest groups play an important role in the formation of a regulation. Interest groups help candidates get elected into government. In return, interest groups can lobby for leniencies in policies that serve their interests. For example, the Canadian Association of Petroleum Producers has lobbied the government of pipeline regulation, streaming of Fisheries Act, tax credits, and greenhouse gas regulations (as per Macleans.ca, The 10 lobby groups with most contact). If these private interests didn’t exist, would the general public lobby to increase tax credits to corporations? I don’t believe this is the case.
We are providing below the assumptions and other calculations we used while computing the WACC and the cash flows.
1. What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why?
Financial Management is a critical aspect of any business in order to achieve a sustainable and efficient cash flow. It is essential in maintaining the link between a business’s future financial goals (profit maximization) and the resources that it has in order to achieve its objectives. Businesses demand certain common goals that increase a bussiness's all around achievement, Some of which involve; growth amongst assests, An increase in efficiency in all areas of the business whether it be management or not. And the ability to meet short term and long term debts. Finacial management undertakes the responsibility to implement and acheive these goals for the business using a range of strategies shaped to meet the needs of the business and
Business plays a major role within our society. It is a creative and competitive activity that continuously contributes to the shaping of our society. By satisfying the needs and wants people cannot satisfy themselves, businesses improve the quality of life for people and create a higher standard of living.
The goal of financial regulation is to increase efficiency in the market, as well as enhance the market 's ability to absorb shock caused by financial instability. There are many reasons for financial instability, but it can be narrowed down to
Securities regulations began in 1933 as a reaction to securities market violations. Securities regulations are a balance of investor and issuer interests. Regulations have typically been enacted in reaction to a violation that affects many, including issuers, investors, and the public. These regulations are not only created in reaction to violations, but the legislature also attempts to take a bigger step in prevention of the same violation reoccurring, as well as preventing a violation that has yet to occur. In other words, securities regulations have always been on a mission to stay one step ahead of securities violations from both issuers and investors. Regulations tend to tighten the rules to ensure investors and issuers do not have