Only Task 2 (900) Words to be completed. Instructions attached
1 Department of Finance MAF202 Money and Capital Markets Assessment 1: Group Assignment (20%) Trimester 2, 2018 Due date: Monday 27 August 2018 at 11:59pm (Eastern Standard Time) • Students to form groups of two (2) minimum or three (3) maximum. Only one Electronic copy of the Group Assignment is to be submitted per group. • Additionally, each student is to submit their own reflective piece on Teamwork. An individual Dropbox will be available for this purpose. Percentage of the Final Grade: 20% of which 15% is Group Report and 5% for Individual Teamwork Reflection Learning Outcome Details Unit Learning Outcome Graduate Learning Outcome Critically evaluate debatable financial issues in the market using relevant knowledge studied in the course and through vigorous peer discussion and collaboration GLO 1, 4, and 7. 1. Group Assignment Detail Global Financial Crisis and the Financial System: The Case of Australia and China The Global Financial Crisis (GFC) began as a subprime mortgage crisis in the United States in 2007, and subsequently developed into a full-blown international financial crisis. Some countries, including Australia and China, were resilient to the GFC. Others, including Iceland, Ireland, the UK, and Brazil, were largely negatively affected by the GFC. 2 In Australia, the Twin Peaks model has been credited as being critical in shielding the country’s financial system from the GFC. Similarly, a decade of financial and structural reforms following the Asian Financial Crisis was credited for China’s resilience. Regulatory changes are made to prevent future GFC. In the United States, the Dodd– Frank Wall Street Reform and Consumer Protection Act of 2010 was passed to “promote the financial stability of the United States” (Source: https://www.gpo.gov/fdsys/pkg/PLAW- 111publ203/html/PLAW-111publ203.htm). Moreover, the Basel III, which introduces capital and liquidity standards was approved by the global financial community (Source: https://www.bis.org/bcbs/implementation/rcap_reports.htm). Similar regulatory changes were undertaken in Australia and China in the aftermath of the GFC. Despite of these regulatory changes, various cases of financial malpractices have been detected by regulators in Australia. Major banks and financial institutions are reportedly involved in various misconducts, including the lack of due diligence when lending money, forged documents, deliberate issuance of insurance to ineligible customers, and bribery. For example, the National Australia Bank admitted to falsifying paperwork when racing for new loan customers, the Commonwealth Bank admitted to charging fees to dead clients, and AMP Limited admitted to lying to regulators. These cases of financial misconduct have led to renewed regulatory reforms/or responses in Australia. Using above information, you are required to undertake following tasks: Task 1 Critically analyse the main causes of the GFC. In your response, you are required to describe the GFC, discuss its origin, and outline its impact on the global banking system (maximum 700 words). Task 2 3 Compare, and reflect on, the financial regulatory changes in Australia and China in the aftermath of the GFC. You are expected to highlight salient features of these regulatory changes (maximum 900 words). Task 3 Highlight the regulatory changes following the recent financial misconducts discovered in Australia. In particular, critically assess the role of the Banking Royal Commission in dealing with the reported financial misconduct. In your response, you are required to briefly outline the origin, composition, and functions of the Banking Royal Commission (maximum 900 words). 2. Sources of Information The custom textbook provides a good starting point for the above tasks. For a comprehensive assessment, you are expected to research on the internet, read various news items and academic articles. As part of the assessment, you are expected to cite the following sources: The Reserve Bank of Australia (RBA), Australian Securities Exchange (ASX), Australian Securities and Investments Commission (ASIC), Australian Competition and Consumer Commission (ACCC), People’s Bank of China (PBC), China Consumers Association (CCA), China Securities Regulatory Commission (CSRC), and Shanghai Stock Exchange (SSE). You are also expected to make use of commercial bank reports in these countries. 3. Requirements 3.1. Please thoroughly read the assessment and other information in the MAF 202 Unit Guide. 3.2. Students are required to work in groups of two or three. Once the group is registered on CloudDeakin, the member(s) of a group will not be allowed to switch to another group. 4 Only one Electronic copy of the Group Assignment is to be submitted per before the deadline. Additionally, each student is required to submit a reflective piece on Teamwork. 3.3. Please monitor CloudDeakin Announcements or Unit discussion until you make the submission. 3.4. It is expected that each student contributes actively to the group task maintaining a team spirit. The ability to demonstrate teamwork in the learning environment is an important component of your university education. Therefore, each student is expected to contribute to the team until the group task is complete. 3.5. Each member is required to provide an individual written reflection on “Team Formation” and your “Commitment to Team”. A separate Dropbox will be set up for you to upload your individual team assessment, which will be separately marked. Please ensure that you submit your Teamwork reflective piece in the individual Assignment Dropbox provided. 3.6. The preferred method of referencing is the Harvard System. Please follow the proper referencing procedure. For further details visit: https://www.deakin.edu.au/students/studying/study-support/referencing 3.7. The assignment represents 20% of the assessment for this unit (15% report plus 5% teamwork reflection). The report needs to be presented in the following format: • Cover page • Executive summary • Table of Contents • Response to Task 1 • Response to Task 2 • Response to Task 3 • Conclusion • Reference list and Appendices https://www.deakin.edu.au/students/studying/study-support/referencing 5 3.8. The group assignment should not exceed 2,500 words and should not be less than 2,000 words (show the word count at the end of the assignment). Please refer to the document entitled “Teamwork Reflection” in the assignment folder on the Cloud unit site. Marking rubrics for both the report and the teamwork reflection will be provided on CloudDeakin. 4. Submission Details 4.1. Submission Please use the dropbox assigned for submitting Assessment 1 under the Assessment folders on CloudDeakin to lodge your assignment on or before the deadline. 4.2. Late Submission In accordance with University’s policy, the following marking penalties will apply if you submit an assessment task after the due date without an approved extension: 5% will be deducted from available marks for each day up to five days, and work that is submitted more than five days after the due date will not be marked. You will receive 0% for the task. ‘Day’ means working day for paper submissions and calendar day for electronic submissions. The Unit Chair may refuse to accept a late submission where it is unreasonable or impracticable to assess the task after the due date. Extensions can only be approved by the Unit Chair. Extensions can be granted for documented serious illness (not just on the day the assignment is due!) or for compassionate reasons under extenuating circumstances. The unit chair can ask to see how much work has been completed before granting an extension. Work or holiday reasons are NOT grounds for an extension – you are expected to manage these issues as part of your studies. You are strongly encouraged to start early and to continually backup your assignment as you progress. Computer crashes or corrupted files will NOT be accepted as valid reasons for an extension of 6 any length. For further information about Special Consideration, visit http://www.deakin.edu.au/students/assessments/special-consideration. 4.3. Assessment Feedback Students who submit their work by the due date will receive their marks and feedback within 15 business days of the due date. 4.4. Academic Integrity, Plagiarism and Collusion Plagiarism and collusion constitute extremely serious breaches of academic integrity. They are forms of cheating, and severe penalties are associated with them, including cancellation of marks for a specific assignment, for a specific unit or even exclusion from the course. If you are ever in doubt about how to properly use and cite a source of information, consult your lecturer or the Study Support website: https://www.deakin.edu.au/students/studying/study-support/referencing. Plagiarism occurs when a student passes off as the student’s own work, or copies without acknowledgment as to its authorship, the work of any other person or resubmits their own work from a previous assessment task. Collusion occurs when a student obtains the agreement of another person for a fraudulent purpose, with the intent of obtaining an advantage in submitting an assignment or other work. Work submitted may be reproduced and/or communicated by the university for assuring academic integrity of submissions: https://www.deakin.edu.au/students/studying/academic-integrity. http://www.deakin.edu.au/students/assessments/special-consideration https://www.deakin.edu.au/students/studying/study-support/referencing https://www.deakin.edu.au/students/studying/academic-integrity