Essay about Ethics In Finance Class 10

Submitted By lbrar18
Words: 887
Pages: 4
Open Document
Ethics in Finance – Class 10

Erin.roach@ryerson.ca for internship stream at rbc, email for application process and more info

Financial Regulation
One problem with financial regulations is it happens after a financial disaster

Sarbanes-Oxley Act
Executives are personally accountable of big mistakes
Improved corporate government regime – giving right incentives
External auditors – take responsibility and have the right incentives
Enhanced & timely disclosure – leveled playing field for insiders
Reforming wall street – leading to more fairness and toilets
Lawyer – setup rules to make them responsible, and/or change incentives

Legal Reaction to corporate and accounting scandals

1. Personal accountability of management
CEO/CFO certifications: be accountable of what’s going on, such as information put on financial statements
Ban on personal loans: companies can offer senior managers a loan, lower interest rates on loan
Forfeiture in the event of restatements: if things aren’t right you lose last years bonus, you lose what you already made
CEO & CFO must reimburse issue for
Any bonus or other incentive-based or equity-based compensation
Any profits realized from sale of securities of the issuer
During 12 months following first publication of financial statements
Ban on insider stock transactions during pension blackout periods
Effective January 26, 2003
Directors and executive officers prohibited from trading issuer equity securities acquired in connection with service or employment during blackout period in 401(k) or similar pension plan
Enhanced sanction: on existing forbidden activities

2. New corporate governance regime
Strengthening the role of independent directors
Majority of board must be “independent”
Proposed phase-in over 2 years after final adoption
Tighter definition of independence
Proposals continue to differ on details
Independent directors must meet regularly in executive sessions
Board committee structure
Enhanced audit committee responsibilities
Shareholder approval of option plans
Whistleblower protections
US and foreign reporting companies prohibited from taking any retaliatory action against employees for blowing whistle to federal agencies, Congress or supervisors on violation of US securities or antifraud laws
Lawyer’s responsibilities
By January 26, 2003, SEC must issue riles requiring attorneys appearing and practicing before the SEC in representation of issuers
To report “evidence” of “material violation of securities law or breach of fiduciary duty or similar violation” by issuer (or agent) to chief legal counsel or CEO

3. Auditing oversight and accounting changes
Public Company Accounting Oversight Board
Auditor independence
Can only audit a company for 4 years then the company has to go to someone else
Cant consult for company if auditing them

4. Enhanced and more timely disclosure
Accelerated Form 10-K & 10-Q filing
Enhanced MD&A disclosure
Increased SEC reviews

5. Reforming Wall Street
Analyst Conflicts of Interests
Right incentives/compensation
May not be tied to specific investment banking transactions
Firm Compensation
Must disclose whether firm managed or co-managed underwriting o received compensation of investment banking in past 12 months or except in next 3 months
Personal trading by analyst
Analyst and household barred from investing in issuer securities prior to IPO if in business sector analyst covers
Blackout on analyst trading in issuers covered for 30 days before and 5 days after issuance of report on issuer
Analyst may not trade against most recent recommendation
Regulation Fair Disclosure (FD)
Access to info
Ban of selective disclosure
Corporate America takes it seriously
Over 65% of public companies have adopted disclosure policies (designated spokespersons and procedures)
One-on-one analyst communication not ceased but changed
Earning guidance in nonpublic communication reduce very dramatically
Show More

Related Documents: Essay about Ethics In Finance Class 10

A Syllabus 801 Fall 2014 Essay

Finance 801- Managerial Finance- Fall 2014 Instructor: Prof. Mark S. Johnson, Ph.D. Class Meets Section 002 TTH 10:20-11:40 G032 Hubbard Section 001 TTH 2:40-4:00 2400 Engineering Building Office: 324 Eppley Center Office phone: 432-6253 E-mail: johnsonm@bus.msu.edu Office Hours: MW 2:30-3:30 PM and by appointment Textbook: Corporate Finance, 10th Edition, by Stephen Ross, Randolph Westerfield, and Jeffrey Jaffe, 2008, McGraw-Hill/Irwin. ISBN 978-0-07-803477-0.…

Words 1097 - Pages 5

Importance Of Commerce In Commerce

more. Knowledge of the subject is however not harmful at all and you can basic tricks and skills regarding mathematics. Here is a list of subjects for 10+2 commerce: • Accountancy • Economics • Mathematics • Business • Finance • Business economics • Cost accounting • Income tax • Auditing • Business finance • Marketing • Business law As a 12th class student you must be aware of the basic concepts of economics, accountancy, mathematics and business studies. Commerce…

Words 958 - Pages 4

Personal Finance and Microsoft® Word Attachment Essay examples

| Course Design Guide College of Humanities FP/101 Version 5 Foundations of Personal Finance | Copyright © 2012, 2011, 2010, 2009 by University of Phoenix. All rights reserved. Course Description This course provides an overview of the elements necessary for effective personal financial planning and the opportunity to apply the techniques and strategies essential to this understanding. Primary areas of study include creating and managing a personal budget, understanding and paying taxes…

Words 3295 - Pages 14

Essay on 3350 Outline

Corporate Finance ADM3350-X Summer 2015 Professor Dr. Dev Gandhi, Ph.D Office DMS 7158 Telephone 613 562-5800 ext. 4701 E-mail Gandhi@telfer.uottawa.ca Office Hours Thursdays: 1:00 - 2:45pm Class Locations FTX 147B Class Hours Thursdays : 3:00-6:00 pm Prerequisite (s) ADM 2350 Program of study Choose between the three choices below : BCom mandatory course Mandatory course of option _____AFI ____or specialization___Finance/Accounting___ Optional course of option _____ or specialization________…

Words 1968 - Pages 8

Ethical Issues Paper

Recent financial crises in 2008 have raised concerns about the complex ethical issues related to the financial services industry. The finance crisis forced millions of people losing their job, homes, and retirement savings. The government had to spend trillions of dollars to bailout some of the major financial institutions. Surprisingly, some of the top executives of the top investment banks appeared to have lost nothing in the crisis, but instead have gained millions of dollars for themselves (Inside…

Words 1241 - Pages 5

Excersise 1 Essay

Spring 2012 Table of Contents Introduction 2 Purpose 5 Review of literature 6 Definition of Terms 7 Problem Statement 7 Research objectives 9 Research Design 9 Methodology and Data collection 9 Data Analysis and Expected results 10 11 Researcher or research staff qualifications 12 Project timeliness and budget 14 Timeliness: 14 Budget: 14 Overview of expected results 15 Bibliography 15 Introduction In the last three decades, we have experienced certain increase…

Words 2333 - Pages 10

MGT 448 Syllabus Essay

Course Dates Feb 10, 2015 - Mar 16, 2015 Faculty Information Name : Email Address : Phone Number : KATHRYN HAYMAN (PRIMARY) haymank@email.phoenix.edu See Policies Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents (both located on your student website): • Academic Policies University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be…

Words 2691 - Pages 11

Essay Top ten takeaways from comm 101

My Top 10 Takeaways from Comm 101 26913146 Assignment 3 Giancarlo Gatti Comm 101, Section 101 November 28th, 2014 be Mind Map Takeaway 1 – Importance of Corporate Culture One of my most essential takeaways from Comm 101 was the concept of corporate culture. I understood that companies had to have satisfied workers to produce good results, but I never knew that companies like Zappos focused on this aspect as a framework for their entire company. When I eventually find a job, I would like…

Words 1890 - Pages 8

Marketing: Marketing and Technical College Essay

of this policy will be subject to disciplinary action(s) which could include being dropped from the class. Angel email communication is to be used as the first and foremost communication tool. Class Times: This is an online class. You must check the website at least three times a week for announcements, to post your assignment or take quizzes or exams. Students should also access the class via http://gvtc.angellearning.com. Students are expected to routinely access the course each week to…

Words 2632 - Pages 11

Corporate Responsiblity Powerpoint Presentation 4 Essay

Green’s Great Things Green’s Great Things Corporate Social Responsibility Review Instructor: Linda Emmele Class: Ethics 316 Team C: Kerrie Torrez, Image courtesy of Kerrie Torrez Our Company & the Community  Provide   Veteran’s & Spousal Preference Job Share for Students and Parents  Provide   Jobs Community Support Local and national charities Ecologically conscious initiatives  Provides   Educational Opportunities Job Training & Promote from within policies Scholarships & Reimbursement…

Words 682 - Pages 3