Effectiveness Of Protection For Financial - Myassignmenthelp.Com

Questions: What Are The Ways To Protect The Customers Using Bank Services? What Is The Difference Between The Competition Arrangement Of Hong Kong With That Of The Other Countries Like US, UK, Singapore And Australia? What Are The Flaws In The Provisions Laid Down In HK Towards The Protection Of Customers? What Are The Consideration And Implication Changes Required For The Protection Of Customers? Answers: Introduction There is a view which is held by the Hong Kong Monitory Authority (HKMA) that the cornerstone for the sustainable development of banks is the confidence and trust of the consumers. These concepts promote the stability of banking within the country. To attain and maintain the trust and confidence of the consumers the banks have the responsibility of providing a fair and just treatment to its consumers. One of the initiatives which have been taken by the HKMA in this regard is the credit card reforms. The practice includes the HMKA operating alongside other industries which it provide enhanced credit card experience to the consumers which is provided in Australia, US and UK. The industry announced total of 31 measures which have been implemented duly within the industry. The purpose of this measures is the promotion of fair and reasonable practices in relation to credit card providers. A few of these measures aim to reduce the cost which is borne by the customers in relation to credit cards and also enhance the accounting and disclosure of credit card providers. The implementation of these reforms is set to lift the standard of Hong Kong in relation to good credit card practices up to other countries such as UK, US and Australia. The HKMA has also worked towards development of the Treat Customers Fairly (TCF) Charter for retail banks as well as Treat Customers Fairly Charter for Private Wealth Management Industry which can be applied on private banks. Five high levels TCF principles are incorporated through both charters which have been drawn from good local and oversee practices as well as G20 High-Level Principles on Financial Consumer Protection[1]. However the situation in which the banking industry of Hong Kong is presently is not up to the standards which is provided by some of the other global financial leaders such s Australia, UK and USA. The primary purpose of the research will to be find ways to provide better protection to the consumers of banking product within Hong Kong. Title of the research Assessment of the Effectiveness of Legislative Protection for Financial Product Consumer in Hong Kong as Comparative of Other Major Global Financial Centre and North Asia Counterparts Reasons and concept for research As the problems in relation to issues like increase in bank fee and charge are rising, the demands that the HKMA should be looking to find out ways for the purpose of protecting the bank customers. Research Objectives The objectives of the research To find out ways to protect the customers using bank services To compare the competition arrangement of Hong Kong with that of the other countries like US, UK, Singapore and Australia To identify the flaws in the provisions laid down in HK towards the protection of customers. To identify the consideration and implication changes required for the protection of customers. This section of the research is going to conduct a review of literature in relation to Effectiveness of Legislative Protection for Financial Product Consumer in Hong Kong. The section will also identify the protection framework which is provided to consumers of banking products in the other counties such as United States, United Kingdom and Australia. The section of the paper will also describe the legislative framework in place in Hong Kong for the protection of consumers of banking products. Several journal articles would be analyzed by this section of the research in order to locate the gap between what research is available and what research is required in relation to the topic. Customer protection Consumer protection has been defined by Douglas as the concept of developing trust and confidence of the consumer towards the market and to ensure that organizations do not indulge in activities which would jeopardize the interest of the consumer in order to make personal gains. Therefore the section will look to consider in details the meaning of consumer protection in relation to the financial sector of Hong Kong[2]. Financial Regulation and Banking Consumer Protection The Financial Services Authority is a prudent regulator operating within the UK for the purpose of ensuring protection of consumers in the financial sector. On the other hand in Australia the Australian Securities and investment Commission is an independent regulator which does the same job. However in contract there is no express authority which has been designated for the purpose of protecting consumers within the banking industry. The Financial Services Authority (FSA) provides express mandates in relation to consumer protection in the marketing industry. There are various regulatory objectives which the FSA has and two out of which are related to consumers. They are namely promoting the understanding in relation to the financial system within the consumers and also to secure a reasonable and adequate degree of protection for them. Other services such as promoting education and financial literacy among the consumers are also provided by the regulator. The authority also conducts c ompetition scrutiny in relation to the industry[3]. When it comes to Australia, the country adopts a functional model in relation to financial supervision where different aspects of the market is looked after by different agencies. The Australian Prudential Regulation Authority (APRA) is the agency which operates in relation to prudential regulations on the other hand the Australian Competition and Consumer Commission (ACCC) and ASIC deal with competition in financial system and consumer protection respectively. Even where the main function of APRA is in relation to ensuring financial safety it is also directed to "balance the objectives of financial safety and efficiency, competition, contestability and competitive neutrality." Irrespective of its other functions the ASIC is also required to ensure compliance in relation to Australian Code of Banking Practice, approving dispute resolution schemes like Ombudsman Scheme, checking customer complaints system, and promoting consumer education. In relation to economy-wide remit the respons ibility of ACCC also extends to ensuring that the financial system is competitive[4]. When it comes to Hong Kong the division of financial supervisory duties is done among different regulators with reference to the financial market which is to be regulated. The primary regulators are the Securities and Futur, es Commission (SFC), the Office of the Commissioner of Insurance (OCI) and Hong Kong Monetary Authority (HKMA). The general function of the HMKA is to "to promote and encourage proper standards of conduct" and "to provide a measure of protection to depositors" in relation to authorized institutions. However the consideration of such functions has to be done in the light of the primary functions of the HKMA that is the promotion of effective working and general stability of the banking system. Therefore as the primary functions of HKMA are in relation to macro issue towards the functioning of the banking system, its formal powers in relation to the banking ordinances cannot be said to be suited towards consumer matters. There are others means through which the HMK A is well equipped such as moral suasion, encouraging compliance to the Code of Banking Practice and handling of customer complaints which may be to an extent effective in relation to consumer affairs[5]. Self-regulation by way of Codes of Banking Practice Moreover apart from the official regulations provided by the regulator, self regulations imposed by the industries plays a important role in the consumer education and protection through setting up a minimum standard in relation to market conduct. Voluntary codes of banking practices sponsored or issued through the industry association have been formulate by all the three countries[6]. Although there may be variation in relation to the exact content, the scope of such codes usually covers disclosure requirements, account operation, dispute resolution and principles of conduct. However irrespective of other differences the effectiveness and from of compliance monitoring may vary. Both the Australian and UK codes mandated that the subscribers must incorporate internal procedures in order to handle customer complaints which have to comply with certain standards. Moreover the members have to be a part of an external dispute resolution mechanism like Ombudsman scheme for customers future recourse[7]. Summary Thus through the section the researcher will establish the shortcoming of the system which operates within Hong Kong in relation to the protection of the consumers as compared to that of the regulations which have been imposed on the banking sectors of countries like UK and Australia. The gap which has been identified by the researcher in relation to the research will be attempted to be closed by him while conducting this research Black-letter approach in doctrinal research For the purpose of conducting the research the researcher is going to adopt the Black-letter approach in doctrinal research. This method will be selected by the researcher through taking into consideration the topic of the research. The researcher will also taken into consideration the amount of resources and time which the researcher is willing to allocate in relation to the research. The 'black letter' project-management is the most traditional approach in relation to a law research. The method takes its name through the tendency of legalistic approaches of concentrating only on the 'letter of the law'. Through this method the researcher will reduce the topic of law to a mandatory descriptive analysis of several co-ordinate and technical legal rules which are found through primary sources. The primary objective why which the researcher will use this approach in relation to the research is to organize, collate and describe legal rules as well as provide commentary on the significanc e and emergence of authoritative legal sources through which consideration of rules on relation case laws is done for identifying an underlying system. The selected methodology mandates the researcher to give meaning to a cases based on the fact that its forms a system of inter-related rules instead of a stand alone decision[8]. Comparative approaches The researcher is going to have a comparative approach in relation to the research. Through this approach the researcher would be able to compare and contrast the legislative framework of Honk Kong in relation to consumer protection with the legislative framework of the other countries such as Australia and UK. The approach is usually adopted when the aim of the researcher is to find out the short coming of a system and r=make recommendations in relation to the topic[9]. Ethics application While collecting data in relation to the research which is going to be both secondary and primary in nature the researcher is going to comply with the provisions of the data protection legislation. The data collected in relation to the research is going to be kept confidential and would not be disclosed without permission. The researcher will acknowledge all sources which have been used for the purpose of conducting this research[10]. Other provisional chapters The research will have a discussion section where the results which have been obtained in relation to the research will be analyzed the researcher. The research will also include the chapters of recommendation and conclusion where the result obtained through the research will be stated. References Arner, Douglas W., et al. Financial Markets in Hong Kong: law and practice. Oxford University Press, 2016.ral Caprio, Gerard, et al. "Macro-financial determinants of the great financial crisis: Implications for financial regulation."Journal of Banking Finance44 (2014): 114-129. Coffee Jr, John C., Hillary Sale, and M. Todd Henderson. "Securities regulation: Cases and materials." (2015). Cranston, Ross.Principles of banking law. Oxford university press, 2017. Dressler, Joshua.Black Letter Outline on Criminal Law. West Academic, 2015. Egan, Mark, Ali Hortasu, and Gregor Matvos. "Deposit competition and financial fragility: Evidence from the us banking sector."The American Economic Review107.1 (2017): 169-216. Egan, Mark, Ali Hortasu, and Gregor Matvos. "Deposit competition and financial fragility: Evidence from the us banking sector."The American Economic Review107.1 (2017): 169-216. Frame, W. Scott, and Lawrence J. White. "Technological change, financial innovation, and diffusion in banking." (2014). Glesne, Corrine.Becoming qualitative researchers: An introduction. Pearson, 2015. Kastner, Lisa. "Much ado about nothing?Transnational civil society, consumer operations and financial regulatory reform."Review of International Political Economy21.6 (2014): 1313-1345. Kay, John.Other People's Money: Masters of the Universe Or Servants of the People?. Profile Books, 2015. Sekaran, Uma, and Roger Bougie.Research methods for business: A skill building approach. John Wiley Sons, 2016. Yu, Jia-Ying. "Comparison of Financial Regulatory Sandboxs History and Development-Take United Kingdom, Singapore, Australia for Example." (2017)