What Are the Regulatory Framework/S Affecting the Multinational Company?
What Are The Treaties, Conventions Or Agreements That Have Impacted On The Products Or Services That Multinational Company Provides In Australia?
Suncorp Group Limited is a Australian conglomerate with interests in insurance, finance and banking. It also operates in other countries around the world like New Zealand and the United Kingdom. It has its headquarters in Brisbane Australia in Queensland. Suncorp Bank Limited is one of the largest banks in Australia and in other countries in its operations. Secondly, Suncorp insurance group is the largest general insurance group in Australia. The company was formed after a successful merger between Metway Bank, Suncorp and Queensland Industry Development Corporation (QIDC).
By the end of the year 2015, Suncorp group limited had a total of 14,500 employees and is listed among the largest individual employer in both Australia and New Zealand. It is also listed in the Australian Securities Exchange (ASX) and has been performing relatively well despite volatility in banking and insurance industry(Avadhani, 2009). It is also a relatively young company which after it was founded in 1996 has survived mostly through joint ventures and partnerships.
The group operating revenue for the year ending 2015 is A$ 16.72 billion and its operating income rose to A$ 3.48 billion for the same year. Profit rose to A$ 1.3 billion for the same year. The company is doing exceptionally well in insurance and banking and is riding high on the ability of its customers to take more and more of its products. It has remained a market leader due to innovation and product differentiation which are unique. Expansion strategies are also core on the boards and the executive trying to get into new markets and regions.
The draft Organic Monetary and Financial Code establishes the strengthening of the private insurance regime and changes its regulation from the superintendence of banks and insurance (SBS) to that of companies, with the entry into force of which will have the name of Superintendence of companies, securities and insurance(Brown, 2017). While the minimum amount for insurance advisors, risk inspectors, claims adjusters and reinsurance intermediaries will be determined by the monetary and financial regulation policy board. The capital will be paid with cash. The monetary and financial regulation policy board may at any time increase the minimum capital requirements.
In addition, the regulations establish that the resources for the increase of paid capital will come exclusively from contributions in money that cannot arise from loans or other direct or indirect financing that have been granted by the company itself; Of the legal reserve surplus; Of accumulated profits; And the capitalization of reserve accounts, provided that they are intended for this purpose(Dunning, 2013). Also, insurance and reinsurance companies must invest their technical reserves of at least 60% of paid-in capital and legal reserve in securities of the stock and real estate market, in the segments and percentages defined by the board, through norms of a general nature, seeking an adequate combination of risks, security and profitability. These companies are prohibited from trading securities issued by entities in the private financial sector.
The fines imposed by the Superintendence, in no case, will be less than 30 unified basic salaries, nor more than 0.3% of the sales reported by the infringing entity. In order to conclude with the liquidation processes, the superintendent, in accordance with the rules issued by the board, may authorize or arrange for the assets and liabilities of entities in liquidation to be temporarily or irrevocably contributed to a trustee that the assets and liabilities arising from said entities may be jointly managed(Du?wel and Frey, 2012). The Code also establishes that the regulatory board will have the power to set wage limits in companies. Observations on the project The executive secretary of the Australian Federation of Insurance Companies , made several observations on the project sent by the executive. The businessman showed his disagreement regarding the minimum capital regime for the start of operations and raises that for insurance is $ 5 million and for reinsurance $ 8 million.
Insurance and reinsurance companies are obliged to contract external auditors, as well as risk rating firms that must be legal entities that will be subject to the qualification standards. The shareholders, board members and administrators will be personally and financially responsible for the deficit that is determined to cover the liabilities of the entity in liquidation(Hill and Hult, n.d.).
Nonetheless, this law maintains some monopolized insurance contracts in the hands of the Bank of Insurance, that is to say that they can only be contracted with this entity, as is the case of insurance contracts concluded by state public persons themselves (they are not monopolized The insurances contracted by the groups of civil servants of said public persons (Dunning, 2013).
That is to say that in spite of the monopoly of the insurance activity, monopolized in the hands of the state entity important areas in the matter. It is singled out as an off-shore insurance operation, seeking as the ultimate goal of the norm the protection of insurance companies legally installed in our country.
Its directors or directors may only be individuals. Companies must also require prior authorization, under penalty of nullity, from the Superintendence of Insurance and Reinsurance to transfer the shares, specifying in such request the identity of the new holder(Jachia and Nikonov, 2012). This implies a strict control by the Superintendence of Insurance and Reinsurance of the holders of the shares of insurance and reinsurance companies, trying to control the solvency that is essential in the insurance and reinsurance activity for the interests and purposes involved.
Likewise, such companies must adopt social denominations that are clear and that leave no doubt about their nature and individuality, in the opinion of the Superintendence of Insurance and Reinsurance, being prohibited the use of denominations related to the insurance or reinsurance activity by entities not authorized to operate in insurance and reinsurance. The Superintendence of insurance and reinsurance can take corrective measures in this regard and even advise the central bank to arrange the temporary closure of the infringing entities, or their final closure prior authorization from the executive(LANG, 2016).
In this sense, it should be taken into account that the balance sheets and financial statements of such companies must be periodically presented for control to the Superintendency of Insurance and Reinsurance and that the investment possibilities of the assets and reserves of the insurers and reinsurers installed In the country as to the form and type of investments that are authorized to carry out, are specially regulated in Circulars issued by the Superintendence of Insurance and Reinsurance. (Odle, 2013) .
In the case of multinationals, especially those with Australian origin, this figure and the culture of regulatory compliance and business ethics have come from the matrix to its different divisions. "In the Australian company, you are breastfeeding compliance as something intrinsic to the company,"
Insurance entities must file with the banking the model of the policies with their annexes, which are usually offered to the public in advance of the date scheduled to begin their use. Likewise, when making modifications to these models a complete copy must be sent.
The Banking deposits in an ordered manner by entity and branch and in chronological order, the models policies and annexes that are sent.
Financing of premiums and portfolio provision
Insurance companies may finance the payment of the insurance premiums they issue, subject to the following conditions provided that they do not exceed seventy percent (70%) of the total value of the premium paid by the policyholder and without exceeding the Individual limits of indebtedness provided for in (Peng, 2017). The resources with which the payment of premiums is financed must come from the patrimony and other funds that do not correspond to the technical reserves. The planned financing mechanisms cannot be applied to the premiums corresponding to the insurance contracts whose form of payment through this modality was not previously agreed.
Insurance premiums not collected in the period foreseen for payment or not financed under the terms and conditions above, must be provisioned according to the current legal regulations.
Insurance companies may transfer their insurance contracts, totally or partially, to another that exploits the corresponding branch. When the assignment is made on twenty-five percent (25%) or more of the portfolio of the same branch, it requires the prior approval of the banking superintendence.
The Ministry of trade and foreign affairs has included in the digital library of treaties the instruments celebrated by our country and its institutions during their more than two hundred years of existence. It has been decided to include existing agreements as well as those instruments that are not in force. In order to be able to satisfy the consultations on existing norms there are enormous amount of requests from researchers, historians, non-governmental organizations and other public or private institutions that are interested in the non-binding instruments and agreements. The instruments have not come into force, they have become extinct or are inter-institutional in character. Insurance premiums not collected in the period foreseen for payment or not financed under the terms and conditions above, must be provisioned according to the current legal regulations.
The Insurer guarantees the payment of the fixed and non-recoverable expenses and disbursements in which the insured has incurred in connection with the planning, preparation and execution of the event or insured event, in the event of cancellation or postponement of the same, due to any causes unforeseeable and fortuitous and beyond the control of the Insured.
Having a good insurance that supports the organization of a congress or convention is practically mandatory. The differential value is the assistance offered to participants in the event of unforeseen events such as: modification of dates, cancellations, medical care, etc. Having a correct coverage for the participants to the congress or convention can determine the savoir-faire of a good organizer, impacting on a positive image for future calls.
We study each case, taking into account the specific characteristics, and can ensure, in case of cancellation of the congress, the budget items we consider, the needs of attendees regardless of their origin, as well as atypical situations that are far from the reach of any organizer.
At the same time, it is a guarantee for the organizer of the congress or convention; Knowing that it may have a margin of maneuver, if necessary, by having a correct coverage that covers the circumstances that may affect the good development of the event.
Also, insurance and reinsurance companies must invest their technical reserves of at least 60% of paid-in capital and legal reserve in securities of the stock and real estate market, in the segments and percentages defined by the board, through norms of a general nature, seeking an adequate combination of risks, security and profitability(Sleeboom-Faulkner, 2010). These companies are prohibited from trading securities issued by entities in the private financial sector. insurance and reinsurance companies are obliged to contract external auditors, as well as risk rating firms that must be legal entities that will be subject to the qualification standards.
Avadhani, V. (2009). Global Business. Mumbai: Global Media.
Brown, K. (2017). Taxation and Development - A Comparative Study. Cham: Springer International Publishing.
Dunning, J. (2013). Multinationals. Routledge.
Du?wel, C. and Frey, R. (2012). Competition for internal funds within multinational banks. Frankfurt am Main: Dt. Bundesbank.
Hill, C. and Hult, G. (n.d.). Global business today.
Jachia, L. and Nikonov, V. (2012). Risk management in regulatory frameworks. New York: United Nations.
LANG, M. (2016). INTERNATIONAL ARBITRATION IN TAX MATTERS. [S.l.]: IBFD.
Muchlinski, P. (2007). Multinational Enterprises & the Law. Oxford: OUP Oxford.
Odle, M. (2013). Multinational Banks and Underdevelopment. Elsevier Science.
Onida, F. and Viesti, G. (n.d.). The Italian multinationals.
Peng, M. (2017). Global business. Australia: Cengage Learning.
Sleeboom-Faulkner, M. (2010). Frameworks of choice. Amsterdam: Amsterdam University Press.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2018). The Superintendence Of Companies, Securities And Insurance. Retrieved from https://myassignmenthelp.com/free-samples/the-superintendence-of-companies-securities-and-insurance.
" The Superintendence Of Companies, Securities And Insurance." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/the-superintendence-of-companies-securities-and-insurance.
My Assignment Help (2018) The Superintendence Of Companies, Securities And Insurance [Online]. Available from: https://myassignmenthelp.com/free-samples/the-superintendence-of-companies-securities-and-insurance
[Accessed 02 April 2020].
My Assignment Help. ' The Superintendence Of Companies, Securities And Insurance' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/the-superintendence-of-companies-securities-and-insurance> accessed 02 April 2020.
My Assignment Help. The Superintendence Of Companies, Securities And Insurance [Internet]. My Assignment Help. 2018 [cited 02 April 2020]. Available from: https://myassignmenthelp.com/free-samples/the-superintendence-of-companies-securities-and-insurance.
Argumentative essays become quite difficult to write specifically if you are short of time and you cant use your glial material in driving points against or for an argument. In a short deadline, this seems quite impossible. Herein we come into the picture. Our PhD Experts brainstorm and elicit out the best points for an against and argument. They provide all arguments with multiple supporting evidence. They are the best who can teach you how to write an argumentative essays. You are also provided with argumentative essay topics, argumentative essay outline and multiple argumentative essay examples. Connect now to get an A-grade argumentative essay.
Answer: Introduction: Legal Problem Solving Toolkit is a guideline for the legal practitioners that enables them to understand and solve various legal issues and problems that they might come across by virtue of their law practice. It contains various stages and approaches that must be addressed while solving a legal problem. A proper Legal Problem Solving Toolkit must contain all the necessary tools, which can ensure that all the viewpoints ...Read More
Answer: The issue is to determine whether Martin had a duty of care towards Simon. The tort of negligence depends majorly upon the fact that whether there is an existence of duty of care by the defendant towards the claimant. Recognising one's legal duty of care is an obligation on the part of the defendant who must adhere to the reasonable standard of care for avoiding any possible injury to the claimant as held in Donoghue v Stevenson ...Read More
Answer: Activity 1 The fundamental ingredients of an insurance contract include the following: the offer and acceptance between the assured and the insurer, presence of an insurable interest, utmost good faith, the immediate and the proximate causes are under the insurance contract. Furthermore, the methods of subrogation, indemnity and contribution are under the elementary principle of an insurance. It also includes the key idea of having ...Read More
Answer: Introduction Internal competition, decentralization and several elements increase the risk of the company; risk exposure calculator calculates the risk of the company by considering the pressure points related with the performance, information management and growth of the company (Forouzanfar & et al. 2015). The present study is related with the analysis of risk of the company named as Property Millionaire. The company...Read More
Answer: Report To Chairperson Board of Directors From: Jane White, Corporate Governance Consultant Date: 22 January 2019 Subject: Cybersecurity policy of the company In the world full of technology, every organization is diverting it is focused on the use of technology. The reason behind the same is the infinite advantages that technology adds to the overall value of the company. The use of the internet and other technological innovatio...Read More
Just share your requirements and get customized solutions on time.
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
expert working good with ratio analysis i got full marks for ratio but overall good presentation.
excellent work by tutor and quality of good work excellent work by tutor and quality of good work excellent work by tutor and quality of good work excellent work by tutor and quality of good work excellent work by tutor and quality of good work
Brilliant work, paid attention to every details, And submitted on time for review.
The report was exceptional. Thank you for helping me with this assignment, and I am very satisfied with the result. The content was exceptional and my grade was exactly what I needed, the writer was very on point and finished my report in a timely ma...