Investment Analysis

Questions - Tutorial 1 (Week 3)

1. What is the function of the following pieces of legislation regulating the financial bodies?

The Australian Prudential Regulation Authority Act 1998 (Cth)

READ s2,8-11, 16-17,20-21,25,48A-D of the APRA Act FOR EXAM PURPOSES.

The Banking Act 1959 (Cth)

The Financial Sector (Shareholdings) Act 1998 (Cth)

2.

Anna is the Deputy Chair of APRA. She has been in this role since 1 July 2003. What is the result if:

a) Anna is investigating Bendigo Bank as part of her role at APRA and she acquired shares in Bendigo Bank on 15 April 2002?

b) Anna becomes a de-facto director of Bendigo Bank. She is not formally appointed as a director but she is the primary decision maker at all Bendigo Bank Board of Directors meetings and all other directors always follow her instructions.

3. What is an authorised deposit taking institution? What is the meaning of banking business?

4. What are the major forms of control the government has over the running of banks and other financial institutions?

5.