Part A:
Research: AFS Obligations and Compliance Description: The provision of financial services and products is regulated in Australia by Chapter 7 of the Corporations Act 2001 (Cth) (Corporations Act). The regulatory framework creates a uniform licensing (Australian Financial Services (AFS) licensing) and disclosure regime for financial services and products. The Australian Securities and Investment Commission (ASIC) is responsible for AFS licensing and supervision of financial services providers, consumer protection in the financial services industry and for enforcement of the financial services laws in general (Holland, 2012: Mondaq).
In this assessment task, you will be required to research the licensing and compliance requirements for an Australian Financial Service (AFS) license.
Part B: Analysis: The Twin Peak Model Description: The Australian financial regulation system is divided along the functional distinction
of
prudential regulation and securities and market supervision (Chaaya, 2011). Prudential regulation is carried out by the Australian Prudential Regulation Authority (APRA), and securities and markets supervision
is
carried out by the Australian Securities and Investments Commission (ASIC); what is known as the “Twin Peak” model of financial regulation. Australia and the Netherlands are the only countries currently operating a twin peaks model. This ‘twin peaks’ model of financial regulation was originally developed in
UK
in
early
nineties and adopted by Australia in 1997-1998 following the Financial Services Reform Act 2001 (Cth) (FSR) based on the recommendation of the Wallis Report of 1997. Numerous papers and commentaries on the twin peak model are easily available in both print and digital media.
In this assessment task, you will be required to research, read the relevant materials from a range of sources, and write an
analyse
of the “Twin Peak” model of financial regulation incorporating the following elements;
Assessment Task 2 Part A: Research and Present Legal Cases Description: There have been several case histories in Australia that have highlighted the need for sound corporate governance. In this assessment task, you will be required to research corporate governance issues in relations to given cases. Two of these cases will be provided to you for this assessment task; ▪ James Hardie: http://www.asic.gov.au/asic/asic.nsf/byheadline/James+Hardie?openDocument ▪ Storm Financial:
https://storm.asic.gov.au/storm/storm.nsf
Part B: Develop a Compliance Management Procedure Description: The Corporations Act 2001 is the primary source of company regulations in Australia and is administered by the Australian Securities and Investments Commission (ASIC); which also manages records for all companies operating throughout Australia. Typical business structures in Australia include sole trader, partnership, company, trust, or an incorporated association (e.g. a not-for-profit community
organisation). Australian companies may be incorporated as private or public companies. All businesses and registered entities need to comply with a range of legal requirements in their operations according to the prevailing laws depending on the nature, type, structure of the business.
In this assessment task, you will play the role of an Accounts officer working with a building company in Melbourne. The company is a family enterprise owned by a husband-wife team with backgrounds in real estate and construction. The company started operating in 2009 and builds residential homes in various part of the city. The company has an in-house legal and compliance team that ensures that the company complies with relevant laws and conducts its business in accordance with the established codes of industry conduct and best practice guidelines.
Assessment Task 3 Q1. Describe main principles that are fundamental to the Australian legal system. Explain how the Common Law forms the basis of Australian jurisprudence.