Business Law Media Report Analysis - 1520 Words

Business Law - Media Report Analysis 1. Identify the areas of law that are relevant to the chosen media report, and explain how they are relevant to the matters outlined in the report. The article reports on a case, whereby the regulatory body of Financial Services (ASIC) has imposed additional conditions on the Australian financial services (AFS) license of Macquarie Bank Limited (Macquarie). The many areas of law that have been touched upon include: Corporations Law The Corporations Act 2001 (Cth) is the section of Australian law governs companies and the formation of companies. The ASIC is the arm of government which regulates financial markets and businesses. Macquarie Bank identifies as a company, by which the formation,†¦show more content†¦Administrative law is relevant to the matters in the case whereby Macquarie set out to appeal to the Administrative Appeals Tribunal (AAT) that the â€Å"tighter licensing conditions† (Butler 2016) imposed by the ASIC to be heard before implementation, on the basis that Macquarie took a â€Å"conservative and consultative approach† to the issues at hand. The Macquarie spokeswoman also said, â€Å"it had dropped its AAT appeal† (Butler, 2016). Contract Law An element of Contract Law was raised in the case, where there were queries regarding Macquarie’s ability to honor their obligation to fulfil client money rules. The findings proved that there were no issues in this regard other than Macquarie having deficiencies in their systems and procedures, such as â€Å"quarterly reports not being filled out in time† (Butler 2016). Tort Law Tort law is another area of law that was imposed upon by Macquarie. There was a case of negligence on behalf of Macquarie Equities financial advisors towards their clients. Macquarie bank has as a result had to undertake a client remediation program to compensate investors hurt by shoddy advice† (Butler 2016). The ASIC, as a result, had â€Å"banned three former advisors† and â€Å"continuing to investigate others† (Butler 2016 2. The law serves a number of different functions. It: †¢ Ensures reasonable predictability in daily life; Contracts are used in every aspect of life to ensure â€Å"ensures reasonable