MyAssignmentServices uses cookies to deliver the best experience possible. Read more

Markets And Legal Frameworks - Answer 1

Issue

The main issues of this article revolving around the common Bank of Australia were unfair trade practices and schedules and activities done by the stakeholders of the financial institution.

Rule 

Corporations Act 2001

The Trade Practice Act 1974 (Cth)

The Australian Securities and Investment Commission Act 2001

Application

The rule of the acts holds importance and relevance with the present case of Commonwealth Bank of Australia: Rogue One. In Australia, The Corporations' Act 2001 governs the regulations related to the financial institutions operating in Australia. The act extends to the state as well as still the interstate level. In the present case study, the operations of the Commonwealth Bank of Australia will be governed by the corporation's act according to the provisions as it governs the investment and financial transactions of the country which is inclusive of determining the duties of various stakeholders. Apart from this, the Australian Securities and investment commission act of 2001 is also related to the present case of Commonwealth Bank of Australia because this act deals with the governance of various financial operations like service law in Australia. This act governs disclosures by various financial institutions (Chen and Lee, 2016). So far as the trade practice act of the year 1974 is concerned, this act protects regulate the consumer protection laws in Australia to cut down the negative effects of higher competition and organizational activities in the country.

Conclusion 

Therefore, it can be concluded that for the present case and product and activities of Commonwealth Bank of Australia: Rogue One, all the acts discussed above holds utmost relevance. The facts of the present case study determined that the financial institution has been engaged under various fraudulent activities until the year 2012 (ABC News Breakfast, 2018). Therefore, The Corporation's Act 2001 comes into the picture as it governs the restriction upon the fraudulent conduct by the business entities. The Australian Securities and Investment Commission Act also keep the check upon the regulation of fair trade in the country. Therefore, the Commonwealth Bank of Australia will be governed under the Australian security and investment commission act. According to the trade practices act 1974, the fraud committed by the financial institution will be governed under this act. The trade practices act governs the responsibilities of various shareholders of financial institutions. Hence by keeping regards to all the arguments and facts of the present study, Corporations Act, ASIC Act, and Trade Practice Act 1974 pertinent to the case study of Commonwealth Bank of Australia: Rogue One.

Markets And Legal Frameworks - Answer 2

Issue

To identify the statement quoted by Mr Jack Welch who was the former chief executive officer of general electric.

Rule 

Corporations Act 2001

The Trade Practice Act 1974 (Cth)

The Australian Securities and Investment Commission Act 2001

Application

The intention of coating the statement reflects the behaviour of workers in the Corporation. By stating a line with sales show me the company's various compensation plans and I will show you how the employees will behave, it aims to suggest that motivation in terms of monetary rewards plays a major role in determining the behaviour of the workers (AICD, 2016). Compensation can be in a form of capital which is a major criterion of operating a smooth flow of business. Every director of the organization expects some new words out of the capital invested in the business (Chen and Lee, 2016). Here come the role and importance of compensation and it is important to note that the capital of compensation in the corporation defines the balance and partnership of the corporation with the workers.

Compensation must be provided in such a manner that employs part visualizing the goals of the organization as their own. It is the responsibility of the organization to formulate compensation policies in such a way which can positively formulate the behaviour of the employees for the profit of the corporation. The present case study clearly states the fact that the Commonwealth Bank of Australia relies upon providing short term incentives to the workers like very less amount of rewards or bonuses (ABC News Breakfast, 2018). The financial institution had missed represented the clients to invest in the bank by purchasing properties and taking a loan from the financial institution under the blanket of providing incentives. The financial planners of the Commonwealth Bank of Australia start creating a boiler room for the employers for achieving the target set by the financial planners. This pressure had created problems and downfall for the financial institution at large.

Conclusion

Therefore, it can be concluded that remuneration planning in the Commonwealth Bank of Australia has largely created a negative impact upon the behaviour of the workers. The corporate culture also plays a major role to modify the collective behaviour of the workers in the Corporation which is directly proportional to the environment of the workplace. All the product and conduct by the financial department of CBA had contributed to its negative culture and poor operations of the company. It is recommended that proper appraisal and rewards must be provided to the workers of the organization according to their performance Matrix so that they can be motivated enough to achieve the objectives of the company.

Markets And Legal Frameworks - Answer 3

Issue

Identify the challenges faced by the Commonwealth Bank of Australia for promoting good governance, compliance and ethical behaviour.

Rule

Corporations Act 2001 (Cth)

Application

The major drawback to promoting ethical behaviour from the end of the Commonwealth Bank of Australia was its financial planning department because they had unethically misrepresented the customers to invest in the bank. The investment could have caused potential risk to the customers. Also, misrepresentation and falsification of documents along with the non-disclosure of various forms can turn out to be a challenge to promote ethical behaviour in CBA (Puckett, 2015). Apart from this, the problems of providing rewards and incentives to the employees and the careless attitude of the financial planners of CBA had negatively impacted the culture of the sale in the organization. Turn out to be a challenge to promote compliance and corporate governance.

Conclusion

It is clear from the case study that the Commonwealth Bank of Australia was aware of the suspension of employees done by the financial planning department on the grounds of not meeting the set target. It is clear from the fact that financial institutions act by contacting the provisions under the Corporation's Act of 2001. Apart from this, no disclosure was made by the bank to the Australian security and investment committee. The misrepresentation and fraudulent conduct by the stakeholders had turned out to be a major challenge for complaints of, corporate governance and ethics. It is recommended that the financial institution must have followed all the regulations and code of conduct according to various governing acts of the country.

Markets And Legal Frameworks - Answer 4

Issue

  • To identify the main players of the financial service industry that regulates the services of finance in Australia. 
  • To identify the changes recently made by doing amendments in the financial planning industry under the financial advisor standards and ethical authority.

Rule

Financial Adviser Standards and Ethics Authority (FASEA)

Corporations Act 2001 (Cth)

Application

The Australian prudential regulatory authority, Australian security, and investment commission, and the Reserve Bank of Australia some of the major players of the financial service industry in Australia. The APRA, ASIC, and RBA work to regulate all the banking related operations in the territory of Australia. APRA governs the operations related to the banking industry like insurance, credit unions, and all other superannuation operations under the banking act of 1959 (APRA, 2018). Also the Australian Securities and investment commission government still legal provisions of the financial industry related to the market activities and the protection of consumers from any unfair trade practice in Australia. The role of The Reserve Bank of Australia is to regulate and maintain financial stability in the country by maintaining and regulating the monetary policies.

The Reserve Bank of Australia works under the set principles and guidelines by the Australian Securities and investment committee. On 1st January 2020, the government of Australia came up with certain changes to be made under the financial industry (ABC News Breakfast, 2018). Various standards of code of practice have been incorporated under the FASEA code which aims to extend the obligations of the corporation (Bonny and Lacey, 2015). Various standard states have been incorporated under the act in which teams to encourage the responsibility of the organization to maintain a higher standard of ethics. Under section 961 of the FASEA Act, standard 2 governs the protection of clients in the territory of Australia. The changes aim to encourage fairness and diligence by the financial institutions operating in the country

Conclusion

Therefore, it can be concluded that the Australian Securities and investment commission, the Australian prudential regulatory authority, and the Reserve Bank of Australia plays a vital role in determining the ethics and governance of financial institutions in the territory of Australia. The changes are made by various amendments in the FASEA Act aims to provide the highest standard of care and wellness at the end of financial institutions in the country to the customers in Australia.

Markets And Legal Frameworks - Answer 5

Issue

To identify the grounds of criticism of the Australian security and investment committee on the grounds of its managing and dealing with the case of CFPL. 

To identify the constraints of maintaining proper services by the regulating financial body in Australia.

Rule

Corporations Act 2001

The Australian Securities and Investment Commission Act 2001

Application

The royal commission has investigated the inquiry done by the Australian security investment committee in the case of CBA. The Commonwealth financial planning limited (CFPL), had committed fraud Android operated under the most unethical and dishonest manner. The financial planning committee had disregarded the interest of the customers in Australia and therefore the role of the Australian security investment committee comes into play to take action against them. It was found that the regulating body was not very keen and a sceptic for the case of Commonwealth Bank of Australia. The investigation found that there was an unnecessary delay on the part of the Australian security investment committee for taking any strict action against the CFPL (ABC News Breakfast, 2018). Also, the regulating body was criticized as it had not provided a proper because of compensation that needs to be paid to the customers who got affected by the misrepresentation done on the part of CFPL.

The ASIC was also criticized stating the fact that it had trusted the internal operations of the bank and had not given much regard to the payments of the customers. Three major constraints that can be faced by any regulating body are the problem of growth in the financial sector. The major shift in the numbers of investors can lead to complexities from the end of the regulating body. It can become difficult to oversee the functions of all the investing entities in the market. Lack of funds can also be turned out to be a major ground of constraint. It is the responsibility of the regulating body to meet the ends and needs of the change in the demography. Apart from this product complexity can also turn out to be a constraint for the regulating body. Change in technology can become a problem for the regulating body to keep pace with the change.

Conclusion

Therefore, it can be concluded that the delay on the part of the regulating body, the lethargic attitude and reckless behaviour to provide payment to the customer suffered by the fraudulent activities by the CFPL not taken care by the regulating body according to the provisions of the act. The body was also accused of trusting the internal operations of the Commonwealth Bank of Australia while disregarding the interest of the customers. Product complexity, lack of fund, increase in the investors are three major factors which can become the grounds of constraint suffered by the regulating body in Australia. This constraint can turn out to be a major factor by which the Australian security investment committee can find difficulty in discharge and its duty for the financial industry in the territory of Australia. Therefore, the Australian security investment committee must maintain a balance between the unforeseen risk in the pension industry to meet the operations and objectives of the act.

References for Markets And Legal Frameworks

Australian Prudential Regulation Authority (APRA). 2018. Prudential Inquiry into The Commonwealth Bank of Australia. https://www.apra.gov.au/sites/default/files/CBA-Prudential-Inquiry_FinalReport_30042018.pdf

ABC News Breakfast, 2018. Banking royal commission revelations 'worse than I thought', says former ACCC boss. ABC News. http://www.abc.net.au/news/2018-04-20/banking-roya-l-commission-allanfells-accc-reaction/9679182

Australian Institute of Company Directors (AICD). 2016. The role of the board in corporate culture. https://aicd.companydirectors.com.au/membership/company-directormagazine/2016-back-editions/august/the-role-of-the-board-in-corporateculture

Puckett, A. 2015. “Suspect CEOs, unethical culture, and corporate misbehavior.” Journal of Financial Economics, 117, no. 1 (July), 98-121. doi:10.1016/j.jfineco.2014.12.001

Bonny, P., Goode, S., and Lacey, D. 2015. “Revisiting employee fraud: gender, investigation outcomes and offender motivation.” Journal of Financial Crime 22, no. 4 (June), 447-467. doi:10.1108/JFC-04-2014-0018

Chen, J., Douglas, C., Hou, W. and Lee, E. 2016. “CEO Accountability for Corporate Fraud: Evidence from the Split Share Structure Reform in China.” Journal of Business Ethics 138, no. 4 (November), 787-806. doi:10.1007/s10551-014-2467-2

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Law Assignment Help

Get It Done! Today

Applicable Time Zone is AEST [Sydney, NSW] (GMT+11)
Not Specific >5000
  • 1,212,718Orders

  • 4.9/5Rating

  • 5,063Experts

Highlights

  • 21 Step Quality Check
  • 2000+ Ph.D Experts
  • Live Expert Sessions
  • Dedicated App
  • Earn while you Learn with us
  • Confidentiality Agreement
  • Money Back Guarantee
  • Customer Feedback

Just Pay for your Assignment

  • Turnitin Report

    $10.00
  • Proofreading and Editing

    $9.00Per Page
  • Consultation with Expert

    $35.00Per Hour
  • Live Session 1-on-1

    $40.00Per 30 min.
  • Quality Check

    $25.00
  • Total

    Free
  • Let's Start

Get
500 Words Free
on your assignment today

Browse across 1 Million Assignment Samples for Free

Explore MASS
Order Now

Request Callback

My Assignment Services- Whatsapp Tap to ChatGet instant assignment help

Hire Certified Experts
Ask your Question
Need Assistance on your
existing assignment order?