LAW20045 FINANCE LAW - RESEARCH ASSIGNMENT

Part B: Research

Choose ONE of the following options below and answer the accompanying question[s].

Option One.
Although it has been criticised, the Hayne Royal Commission has been described as a
“Watershed” moment for the Australian financial system. In its Final Report it
made four observations, the first of which is below:

‘First, in almost every case, the conduct in issue was driven not only by the relevant entity’s pursuit of profit but also by individuals’ pursuit of gain, whether in the form of remuneration for the individual or profit for the individual’s business. Providing a service to customers was relegated to second place. Sales became all important. ....’ 3

Question: It has been two years since the Hayne Royal Commission has handed down its findings. In your opinion has the Hayne Royal Commission been effective with improving regulatory compliance? Or has there been an increase in banks breaching their regulatory obligations? Has their “profits-first” culture, as described above remained intact or shifted towards ensuring regulatory compliance?

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OR

Option Two.
‘Technology can play a crucial role in establishing a culture of compliance.’4

Refer to the quote above. Regulatory compliance is opined to be one of the greatest challenges for ADI’s in 2021. As the quote above suggests technology can assist with regulatory compliance. Recently in Australian Securities and Investments Commission v Australia and New Zealand Banking Group Limited (No 3) [2020] FCA 1421, where ANZ admitted to regulatory breaches on 327,895 occasions.

So, how does technology affect the legal relationship between ADI and customer? In your opinion, does technology enhance an ADI’s regulatory compliance, or does it increase an ADI’s exposure to litigation?
Discuss by referring to scholarly articles as well as case example as well as relevant rues of common law, statute and codes of practice

OR

Option Three
The regulatory space in the financial services and banking industries is crowded. There are rules of common law such as negligence, contract; rules from various statutes such as the Corporations Act 2001 (Cth), Banking Act 1959 (Cth), Competition and Consumer Act 2010 (Cth) [introducing the Australian Consumer Law]; and even industrial codes of practice, such as Banking Code of Practice (2020) and the ePayments Code (2016)

Question: In your opinion is this regulatory space “overcrowded”? Which of the various regulatory rules is the most effective to protect the customer from potential “predatory” behaviour by an ADI? IS this regulatory space biased against ADI’s?
Discuss by referring to scholarly articles as well as case example as well as relevant rues of common law, statute and codes of practice.

OR

Option Four
If you choose this option you must obtain permission from the Unit Convenor by end of Week Two of the Semester. Failure to do so will result in a penalty of 20% being deducted from the student’s final mark, and the chief examiner reserves the right to refuse acceptance of the students’ work, which will then result in a final grade of zero (o) for Part B of the Research Assignment.

Question: Chose your own topic from those listed in the Unit Guide and design your own question.
Here are some suggested “problem areas” for regulators:

• “Pay day lending”;
• “Blackpooling”;
• High frequency trading; and,
• Algorithmic trading.

Discuss the implications these pose for the regulators such as the ASIC. Can they be regulated? How? Does the current legislative/regulatory scheme effectively regulate these areas?

Discuss by referring to scholarly articles as well as case example as well as relevant rues of common law, statute and codes of practice