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NSWBusiness StudiesQuick questions
Topic 3: Finance
Quick questions on Ethical and legal aspects of financial management (HSC Business Studies)
11short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What are the regulators?Show answer
The Australian Securities and Investments Commission is the corporate, markets and financial-services regulator. Its principal functions:
What are ethical responsibilities?Show answer
Beyond legal compliance, financial managers face ethical responsibilities.
What is truthful reporting?Show answer
Financial reports should give a true and fair view, not just technically meet the standards. The 2001 HIH Insurance collapse and the 2001 One.Tel collapse were partly enabled by aggressive accounting that complied with the letter of accounting standards while obscuring the underlying economic position.
What is transparency on remuneration?Show answer
Listed companies must disclose executive remuneration in detail (the Remuneration Report). Shareholders can vote against the report (the "two strikes" rule can lead to a board spill).
What is insider trading prohibition?Show answer
Trading on price-sensitive information that is not generally available is a criminal offence. Multiple ASIC prosecutions in recent years have resulted in custodial sentences.
What are whistleblower protections?Show answer
The Treasury Laws Amendment (Enhancing Whistleblower Protections) Act 2019 strengthened protections for corporate whistleblowers. Many financial-services matters now reach regulators through whistleblower disclosures.
What is the Hayne Royal Commission?Show answer
Examined the banking, super and financial-advice industries. Found systemic misconduct - fees for no service (AMP, CBA, NAB, Westpac); misleading conduct (CommInsure, Freedom Insurance); inappropriate financial advice; breaches of responsible lending. Total remediation across the industry has exceeded $5 billion across multiple matters.
What is westpac AUSTRAC matter?Show answer
23 million breaches of AML/CTF reporting. 1 billion capital add-on.
What is pwC tax-leaks matter?Show answer
Partners used confidential ATO/Treasury policy information to advise multinational clients on tax planning before the policy was published. Triggered Senate inquiry, partner departures, government decision to remove tax advisory work, multiple regulatory investigations across multiple jurisdictions. The matter has reshaped the consulting industry's approach to confidential government information.
What are star Entertainment matters?Show answer
AUSTRAC enforcement action; NSW and Queensland regulatory inquiries into casino operations; significant penalties; senior leadership changes. The matter combines AML/CTF, conduct and prudential concerns.
What is plan?Show answer
Cover the framework, post-Hayne intensification, the major recent matters, the limits, and an evaluation.