Regulatory and Compliance Issues

Regulatory and Compliance Issues Assignment example
Finance & Accounting
Pages 3 (753 words)
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FOFA Reforms By Student Name Course Institution Date Question 1: Financial Product A. Formal Definition Under Section 763A of Chapter 7 of the Corporations Act 2001, as amended by the Financial Services Reform Act 2001, a financial product is defined as a transaction in which an individual either directly or indirectly, invests financial assets, “manages financial risk” or “makes non-cash payments” (Corporations Act 2001, Section 763A).


This might include insurance policies (Corporations Act 2001, Section 763C). Non-cash payments refers generally to alternatives to cash payments such as cheques, credit cards, debit cards, travellers cheques and so on (Corporations Act 2001, Section 763D). B. Plain English Definition A plain English definition of financial advice is guidance and recommendations from an individual who is qualified and knowledgeable about financial products, estate planning and asset protection. Financial advice is not only based on knowledge, but also based on due diligence. In this regard financial advice is given after taken into account investment, savings, debt creation, debt management and so on that is compatible with the client’s needs and resources. C. Examples of Financial Products in Australia Examples of financial products available in Australia include, managed investment portfolios, derivatives, securities, and foreign exchange agreements. Managed investment portfolios refer to a collection of investments made by and on behalf of the owner of financial assets. The idea is to invest those assets in particular undertakings with the expectation that the owner of the assets will acquire some returns. ...
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