AFM231 Chapter Notes - Chapter 25: Brokerage Firm, United Nations Commission On International Trade Law, Promissory Note
13 Sep 2015
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Document Summary
Traditionally, have 4 distinct sectors: banks, trust companies, stock brokerages, and insurance companies. In the past these 4 sectors have been separately regulated. But in the 1980s began to relax these sectors and in 1987 allowed banks to go beyond traditional banking and participate in other sectors. Now going international and banks are under federal regulated by the bank act. Purpose types of business they are permitted to conduct. ; to ensure the stability and liquidity of banks and to identify and regulate the. Simply put, bank consists of one bank account where business deposits cash from customers and makes payments to suppliers, employees, government, and owners. In legal nature, bank is debtor and customer is creditor. Fiduciary relationship may exist and bank can have additional onerous duties like: provide advice with care and skill, disclose any actual or potential conflicts of interest, consider the interests of customer ahead of bank.
