Law of Financial Institutions and Securities
| Law of Financial Institutions and Securities Assignment | Yan Che | | Student ID: 3805720 | 2011/10/3 |
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Contents Introduction 3 Task 1 3 APRA 3 AISC 4 Task 2 5 Bank’s duties 5 Breach the Law 7 The characteristics of accounts 8 Assess the legal correctness of the statements made by GFC 9 Conclusion 10 Referencing 11
Introduction
This essay describes the case about relationship between customer GFC Bank, and financial planner, Jane. It discussion of the legal activities discussion involved in the case which combine d all relevant sources of law, legislation, common law and Industry Codes. Banking Law regulate the bank. In addition, it keeps right of customers.
Task 1
APRA
The purpose of the Banking Act 1959 (Cth) is to regulate Banking. APRA is the prudential regulator of banks. The Act provides for the prudential supervision and monitoring of banks by APRA, licensing by APRA of ‘authorised deposit-taking institutions’ (ADIs’) which include banks, credit unions, and building societies. Furthermore, the Act declares that any corporation which wants to do the business of banking may apply to APRA for the authority to do so: s 9. In addition, there are powers given to APRA which may be exercised for the protection of depositors.
The articles ‘APRA warns banks over home loans’ and ‘APRA calls halt to riskier lending’ reflected role and powers of APRA. ‘APRA is not worried the local mortgage market is shaky, but it is concerned to ensure that mortgage are a larger proportion of the country’s banking system – riskier lending practices don’t become industry norms.’ They also worry the lower overall growth in mortgage lending has led to overly aggressive competition. APRA supervises the deposit-taking institutions on anytime. If the bank approved too much loan, that will lead to a financial crisis, like the US crisis. In fact, APRA concerns riskier lending practices. The article mentions that APRA reiterated the need
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Contents Introduction 3 Task 1 3 APRA 3 AISC 4 Task 2 5 Bank’s duties 5 Breach the Law 7 The characteristics of accounts 8 Assess the legal correctness of the statements made by GFC 9 Conclusion 10 Referencing 11
Introduction
This essay describes the case about relationship between customer GFC Bank, and financial planner, Jane. It discussion of the legal activities discussion involved in the case which combine d all relevant sources of law, legislation, common law and Industry Codes. Banking Law regulate the bank. In addition, it keeps right of customers.
Task 1
APRA
The purpose of the Banking Act 1959 (Cth) is to regulate Banking. APRA is the prudential regulator of banks. The Act provides for the prudential supervision and monitoring of banks by APRA, licensing by APRA of ‘authorised deposit-taking institutions’ (ADIs’) which include banks, credit unions, and building societies. Furthermore, the Act declares that any corporation which wants to do the business of banking may apply to APRA for the authority to do so: s 9. In addition, there are powers given to APRA which may be exercised for the protection of depositors.
The articles ‘APRA warns banks over home loans’ and ‘APRA calls halt to riskier lending’ reflected role and powers of APRA. ‘APRA is not worried the local mortgage market is shaky, but it is concerned to ensure that mortgage are a larger proportion of the country’s banking system – riskier lending practices don’t become industry norms.’ They also worry the lower overall growth in mortgage lending has led to overly aggressive competition. APRA supervises the deposit-taking institutions on anytime. If the bank approved too much loan, that will lead to a financial crisis, like the US crisis. In fact, APRA concerns riskier lending practices. The article mentions that APRA reiterated the need