Unexpected Outcomes of the Financial Institutions Act

The Financial Institutions Act of 1992 provided a new legislative and regulatory framework for non-bank deposit-taking financial institutions (NBFIs), Building Societies and Credit Unions. The expectation of the Act was that the NBFIs would cater to the household sector of the economy and that the two types of NBFI would retain different balance sheet structures. However, the new regulation regime caused credit unions to change their lending policy to emphasis mortgage, rather than personal loans, and thus comerge to similar structure to building societies.

The effect of injector-element scale on the mixing and combustion of nitrogen tetroxide-hydrazine propellants

Injector-element physical size effect on mixing and combustion of nitrogen tetroxide-hydrazine propellant

A Review Of Australia's Compulsory Superannuation Scheme After A Decade

The Australian superannuation system places trustees in the key role of managing superannuation assets and we subject the role of trustee to close scrutiny while identifying the very substantial principal-and-agent problems that exist in the industry. We consider two policy issues: member choice of fund and portability of accumulated balances in the light of how they would improve the ability of individual members to maximise retirement benefits and the efficiency of the system. We argue that the award superannuation scheme which requires, by conditions in industrial awards, contributions of three per cent of wage or salary of an employee continues along side the SG scheme is due for review.

An Economic Analysis of the Legal Concept of Trustees' Power of Investment

Authorised trustee status is a legal concept which has economic implications; one of the major implications is that it assists in the direction of investment funds into particular securities and areas of the economy. The concept of authorised trustee status, while attempting to achieve specific outcomes for the beneficiaries of trusts cannot be relied upon to secure these results. Economic analysis of the role of the trustee maintains that this role is one of portfolio manager; a role which is complex but which is explicable in terms of definable procedures and practices. The role of trustee as portfolio manager is one which requires greater financial knowledge than can be assumed is possessed by all trustees. The trustee as portfolio manager is required to maintain a review of decisions make under powers to invest trust assets. A solution to the problem of authorised trustee status is proposed. The solution takes two parts: the first is the adoption of the prudent person approach but with the codification of duties of the trustee and the explicit listing of the factors that a trustee should consider in using the investment powers. The second part of the proposed solution is to link the investment powers of trustees to the best practice features of securities advisers who are now licensed by a regulatory body, the Australian Securities and Investment Commission

Designing a Conversion Masters Subject with Flexible Assessment

This paper develops a consistent approach to the design of a subject, The Economics of Financial Markets, which is a required course for a conversion Masters program. The course is a large enrolment (>. 50) with students coming from a number of countries and backgrounds in economics. In general, students display anxiety about theoretical aspects of the course and find it difficult to distinguish between the economics of financial markets and financial markets as taught in a standard finance course. Students display a high degree of reliance on lecturer notes and are more equipped to undertake rote learning than analysis. The subject design takes these factors into account and draws on educational principles and on economic analysis to establish the design framework. In order to distinguish the economics of financial markets from financial markets the subject design provides economic organising concepts; these are the efficiency of financial markets and the impact of financial variables on the real sector of the economy. In addition, the subject design develops a standard analytical procedure for analysis of financial instruments and financial markets. In each sector of the subject, standard analytical procedures are identified as are the specialised vocabulary of the economics of financial markets.The subject design incorporates both formative and summative assessment. The summative assessment is flexible allowing for some student choice but also providing incentives for students to undertake more than the minimum assessment tasks. The assessment instruments are related to the objectives of the course. Overall the assessment is designed to reduce student anxiety and encourage learning

Sustainable Retirement: A Look At Consumer Desires

This paper examines the findings of the research project, 'Retirement Savings: Drivers and Desires', commissioned by the Investment and Financial Services Association Ltd (IFSA) in 2001. The paper investigates retirement savings decision-making and retirement income product stream choice. This paper presents a quantitative analysis of questionnaire data relating to decision-making and product stream choice and discusses these issues in the context of established research findings about retirement income. The paper consists of five sections. The first is a brief review of the 'Drivers and Desires' research project conducted in 2001. An important theme to emerge from the initial project was that participants reported a high level of risk aversion and a strong desire to obtain the publicly funded age pension. Based on the findings of the initial project, the remaining sections of this paper focuses on consumer preferences, particularly relating to risk aversion and demand for the age pension. The second section focuses on a specific issue emanating from the initial project, specifically the market for annuities. The third section considers retirement income streams in terms of risks to investors. The fourth section carries out a quantitative analysis of consumer preferences toward the identified risks in previous sections, and specifically considers various trade-offs in the decision-making process. The fifth section outlines various policy alternatives and issues for future consideration.