• Stands for Australian Securities and
• Has the power to monitor, investigate
and act whenever the “integrity” of
the ﬁnancial system is at risk
• This usually occurs if an individual
acts illegally e.g. through creating
unethical investment products
• Is the primary agency responsible for
monitoring the conduct of companies
• Also responsible for monitoring the
Australian Stock Exchange
From the ASIC
We contribute to Australia’s economic reputation and wellbeing by
ensuring that Australia’s financial markets are fair and transparent,
supported by confident and informed investors and consumers.
We are an independent Commonwealth Government body. We are set up
under and administer the Australian Securities and Investments Commission
Act (ASIC Act), and we carry out most of our work under the Corporations
The Australian Securities and Investments Commission Act 2001 requires us
• uphold the law uniformly, effectively and quickly
• promote confident and informed participation by investors and
consumers in the financial system
Some recent ASIC investigations
Insurance broker pleads guilty to theft
Mr Robert James Wilson of Kensington, Victoria, has pleaded guilty to two charges of
theft, one charge of obtaining financial advantage by deception and one charge of obtaining
property by deception in the County Court of Victoria.
ASIC permanently bans former Victorian adviser
We have permanently banned former Melbourne financial adviser, Mr David Lee Harwood
from providing financial services.
ASIC disqualifies four directors
We disqualified four directors from managing corporations throughout May 2008. These
disqualifications followed the directors’ involvement in failed companies.
ASIC obtains court orders to stop unlicensed financial advice
A Tasmanian-based company and its director have been restrained from providing financial
product advice for ten years following our action.
ASIC updates guidance on statutory reporting by external administrators
We have released a revised version of Regulatory Guide 16 External administrators:
Reporting and lodging (RG 16).
Director of Australian-based Malaysian bank sentenced in County Court
The former director of an Australian-based Malaysian bank has been convicted and fined
$10,000 in the Melbourne County Court.
The Demand and
Supply of Funds
(i.e. borrowers and lenders)
• Outline the key reasons why
individuals may decide to borrow
• Describe the ways in which the
business sector can borrow funds
• Why might it be necessary for the
government to participate in the
ﬁnancial market as a borrower?
the demand for
• What is meant by the term “liquidity”?
• Explain the beneﬁt of holding ﬁnancial
assets rather than money
• Discuss the 3 main reasons why people
may prefer to hold money rather than
invest surplus funds in ﬁnancial assets
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