Abstract This paper addresses conflicts of interests facing professionals in financial planning in Canada. The paper points out that the FinancialPlanner Standards Council (FPSC) was put together in 1996 in order to better regulate the rapidly expanding industry and to reduce or eliminate the potential for abuses in the industry - the most common abuses being the potential for conflicts of interest for the financialplanner. The paper delineates 3 types: financial, structural and personal. The paper concludes with the suggestion that one of the best ways to protect the interests of financialplanners is to become certified through the FPSC.
Outline:
Introduction
Conflicts of Interest Conclusion
From the Paper "Another type of conflict may develop when the financial planner actually holds some type of formal or informal position of influence over that of the client. These are termed structural conflicts and while not very common are certainly difficult to regulate or prevent (List). Many of these types of conflicts of interest are prevented by the standards to which all Canadian financial planners must adhere to in order to remain certified financial planners through the Financial Planners Standards Council in accordance with its code of ethics."
Abstract The writer of this paper contends that the career of a financialplanner, while very rewarding, is not without its challenges. This paper details the responsibilities and requirements needed to become a financialplanner. This paper distinguishes between the position of financialplanner and that of the certified financialplanner, which is actually a designation obtained by a financialplanner. There are currently no educational or experience prerequisites to become a financialplanner, other than the requirement in most firms that the applicant pass several licensing examinations, which are detailed in this paper. This paper discusses the areas in which a financialplanner typically operates in, including: Investment planning, estate planning, retirement planning and business succession planning. While describing the ins and outs in the financial planning field, the writer contends that this career is primarily a sales position. The writer also delves into the pay-scale of this particular profession, which varies by firm and level of experience. Those with more experience and with an inventory of clients can demand up to six-figure salaries.
From the Paper "Another group of firms includes brokerage firms, also called wire houses, that may offer some or all of these services, but their primary aim is investment management. These companies include Merrill Lynch, Saloman Smith Barney, Goldman Sachs. They may call their personnel Financial Planners, but they tend to be focused on gathering money from clients to invest through the firm. Some of these firms may offer some of the specialized planning services for their high-dollar clients. The most important thing for someone who is considering this profession is that it is primarily a sales position, particularly in the beginning of the planner's career."
Abstract In this article, the writer notes that conflicts of interest are of great concern in recent years and months, especially since the recent, highly-publicized buyouts involving Qantas and Alinta. The writer points out that in efforts to protect clients and mitigate risk in the financial sectors, conflicts in interest must be addressed suitably. The Qantas and Alinta buyouts have highlighted many of the worst issues pertaining to conflicts in interest in financial institutions. This paper seeks to review the existing literature concerning conflicts of interest, outlining the key terms and issues involved. It additionally covers the recent transactions and conflict of interest issues related to the Alinta MBO and Qantas Private Equity Deal. Finally, it turns to the views of the takeover panel, highlighting their views on conflicts of interest and, more specifically, their views on the Alinta MBO and Qantas private equity deal transactions.
Outline:
Introduction
Analysis
Background & Definitions
Evaluation
The Alinta MBO and Qantas Private Equity Deal
Background & Discussion
Possible Conflicts The Takeover Panel and Conflict of Interest Summary
From the Paper "Conflicts of interest often shock shareholders and the general public since they often blatantly ignore the basic requirements and duty expectations of those involved. For example, a bank that abuses a conflict of interest by recommending services that they know are not the best for a customer comes under public scrutiny for abusing the basic trust assumed in a banking relationship. A bank may suggest such services because they receive a higher interest rate or because they do not offer competitive services. This takes advantage of the lack of knowledge of the consumer, who often looks to the bank as a trusted consultant. Individuals and investors have come to assume some trust in banking and finance relationships, and most would agree that this is not an unreasonable assumption."
Abstract The problem for immigrants to Canada is cultural confusion. Immigrants do not know to which culture, that of their original country or that of Canada, they belong. This is the problem discussed by Bannerji in her essays on cultural conflicts for Canadian immigrants. In this paper I argue that Bannerji does not support the Canadian government's policy of "multiculturalism" towards the cultures of immigrants. Yet, while she retains an interest in her original country of India, Bannerji does not seem to have many cultural traditions of her home country. This is, I think, a sign of the cultural confusion that she says immigrants have.
Abstract This paper considers conflicts of interest and their impact on organizational discourse. Specifically, this research examines the way conflicts of interest impact business decision making and how these issues can be reconciled to create improved outcomes for the organization. Through a careful review of what has been noted about managing conflicts of interest, it will be possible not only to garner a better understanding of the challenges created in this situation, but also to evaluate the potential improvements that can be achieved through this process.
Outline:
Introduction
Literature Review
Conflicts of Interest: Definition and Scope
Managing Conflicts of Interest Policies and Practices
Mathematical/Contingency Modeling
Benefits of Managing Conflicts of Interest Summary/Recommendations/Conclusions
From the Paper "The final issue addressed in the context of this investigation was the benefits of conflict in the organization. Even though conflicts of interest clearly create notable challenges for decision making and action, the reality is that these conflicts also bring to light deficiencies in the organization that can improve outcomes for operations. By being aware of the issues and further using the issue to help the organization grow and develop, managers can set a positive example for addressing ethical issues and further provide employees with vital information which could facilitate their decision making in the future."
Abstract An examination of the changes facing the financialplanner and advisor in his/her profession. The paper looks at changes in the financial markets and trends of investments to show how the relatively simple job of previous decades has transformed into a very challenging one. The writer presents four suggested steps that the financialplanner should follow for forecasting solid investments.
From the Paper "Financial planning was an easy route to wealth and success during the 1980s and the latter part of the 1990s. The stock market was riding high, the new wave of high tech stocks posted significant and uncharted gains and investment capital flowed through the American economy freely. In today's economy, however, the financial planning profession is much more of a challenge and a grind. It can be equally rewarding and fulfilling, but it requires more preparation and understanding of the complex markets and of planners? ethical and professional responsibilities to their clients."
Abstract The authors examine the many themes and conflicts that surround the discussion of the family today. They reveal how the definition of "family" that the social elites construct is very different from what reality actually is. They show how economic realities, violence within the home, and discrimination on all levels, affect families in all walks of life. The authors do an excellent job in demonstrating how the division between men's and women's tasks have significantly changed since capitalism has become embedded within the society.
Abstract The paper analyzes the Federal Reserve Bank's response to the AIG, Lehman Brothers and Merrill Lynch crisis in terms of its implications on financial institutions, interest rates, inflation and the value of the US dollar. The paper discusses how the interconnectedness of these financial institutions made effective measures necessary, but shows how there is no guarantee that these injections into the world economy will boost investor confidence.
Outline:
The Federal Reserve Banks Response to Financial Institution Crises
Analysis of The Fed's Response
Implication on Financial Institutions
The Fed's Response and its Implications for Interest Rates
The Fed's Response and Inflation
The Fed's Response and Its Implications on USD
Conclusion
From the Paper "In light of the AIG, Lehman Brothers and Merrill Lynch crisis, the Federal Reserve Bank as well as other large central banks namely the Bank of Canada, the Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank have decided to inject USD180 billion in the world economy in an effort to avert further bank failures. It is quite disturbing that in the past few days, three of the financial industry's largest firms collapsed as a result of the rippling effects of the sub-prime mortgage crisis. It is good, however, that the Fed saw fit to act swiftly to remedy this problem but, the question here arises: Will the Fed's response be effective in remedying the crises at hand. Also, what are the effects of an injection of this magnitude into the world economy? "
Abstract This paper provides answers to four questions pertaining to financial investment. It looks at discussions surrounding the relationships between bond prices and interest rates. Other key concepts analyzed include nominal interest rate, real interest rate, and rate of inflation. The paper also provides an examination into the reasons why inflationary expectations can cause nominal interest rates to rise.
From the Paper "Is it correct to say that bond prices vary inversely with the interest rate because of simple mathematics? Why? In order to address this question appropriately, one must first define bonds. A bond is a debt security that is representative an obligation of the issuer to pay interest to the creditor (i.e. bond holder) and return the principal at maturity (Letting Off 1). Bonds that are backed by collateral are secured, while those that are not secured are called debentures (Letting Off 1). The issuer of a sinking fund bond is obliged to set aside some of its earnings to retire bonds. A bond is typically identified by maturity date and coupon rate. The coupon rate is the interest rate that is stated on the bond (Letting Off 1)."
Abstract This paper discusses racial issues in Canada. Specifically, it looks at demonizing and criminalizing African-Canadians. The paper argues that this criminalizing makes sense according to conflict theory. In other words, it argues that African-Canadians are being criminalized and demonized in order to maintain the status quo.
From the Paper "Demonizing and Criminalizing African-Canadians Gang Related Shootings in Toronto In the article We Know the Numbers Linda Diebel looks at a possibly gang related shooting that took place at the funeral of Jamal Hemmings (Diebel 2005: A.08). According to Diebel there have been 48 shooting deaths in Toronto this year (Diebel 2005: A.08). The high number of deaths caused by these shootings has made youth violence a major issue in Toronto. This is because 40 of the people that died were under 30 years of age (Diebel 2005: A.08). The fact that the victims and their killers were almost entirely youths made people think that there was really something wrong with young people in Toronto."
Abstract This paper argues that the Canadian colonies of Great Britain did not join the American colonies in Revolution because of mixture of fragmented discontent and self-interest.
Abstract This paper discusses the Canadian airline industry, how it began, how it was once crown corporation and support by the government,and how it is now deregulated, and suffering greatly in financial distress. The paper focuses on three questions that related to this issue, and explores the history of the airline industry in Canada. It further looks into the present and the future.
Abstract This paper takes a look at the New Century Financial Corporation, a relatively new mortgage financing firm. According to the paper, the executives at New Century recognize that the mortgage lending industry is extremely competitive and diverse. The paper discusses how, with the goal of being an industry leader, the firm faces many challenges ahead, including but not limited to, competing with innovative product offerings, economic forces and internal challenges such as well trained brokers, relationship building and technological infrastructure that will manage regulatory compliance on both state and federal levels.
Outline:
Executive Summary
Company Background
Vision Statement
Mission Statement
Values Statement
Environmental Analysis - External Environment
Capital Risk
Competition for Market Share
Technological Advances
Changes in Real Estate Values
Interest Rate Fluctuations
Legal Environment
Internal Environment
Accounting Policies
Hedging Strategies
Geographic Concentration
Fraud
Dependency Upon Outside Vendors
Recommended Long-Term Objectives
Plan ahead for Financing Needs
Reduce Borrower Risk
Geographic Strategy
Product Diversity
Strategic Analysis
Plan Goals and Implementation
Financial Projections and Analysis
Critical Success Factors
Controls and Evaluation
From the Paper "According to Yahoo Finance, New Century ranks fourth with regard to its competitors when it comes to market capitalization, EPS growth and return on equity. The direct competitor companies are Freddie Mac, Countrywide Financial Corporation, Thornburg Mortgage and Annaly Mortgage Manager. There are also numerous Internet mortgage companies that are expanding very rapidly and in the short future will introduce higher rates of competition in the industry. The New Century company ranks third with regard to dividend yield. Freddie Mac's price earnings ratio, however, is 132.74 versus New Century's 6.12 which reflects high market expectations as to the future performance of Freddie Mac company. Although comparing New Century to Freddie Mac is much like comparing apples and oranges - the economies of scale that Freddie Mac is able to achieve is not a level basis for comparison. What is of interest, however, is the revenue growth, one of New Century's top goals. In the above comparison, the industry leader is JER Investors Trust, Inc. with a growth rate of over 122%. Again, it should be noted that JER operates as a specialty finance company in commercial real estate structured finance products. The company's target investments include commercial mortgage backed securities, mezzanine loans and B-Note participations in mortgage loans, commercial mortgage loans, and net leased real estate investments. "
Abstract This paper outlines a Wall Street Journal (WSJ) article about WorldCom's restatement of $7.2 billion in expenses and subsequent financial collapse. The basis of why the editors of the WSJ considered the story leading financial news is explored. Issues related to the study of finance include capital markets and institutions, investments, and financial management. Of particular interest are the financial management issues of accountability, financial statement accuracy, ethics, fraud and corporate responsibility.
From the Paper "The financial collapse of WorldCom occurs in the wake of the recent Enron financial scandal. The Wall Street Journal editors correctly categorize the WorldCom story as "leading the news" (Sandberg & Pulliam, 2002, A3). Attesting to the newsworthiness of the WorldCom story is the fact that this event is being covered in all major news outlets: print, radio, television, and on the web."
Abstract This paper examines how conflict in marriages can happen for a number of reasons, and in many cases, can lead to a decline in intimacy, or an imbalance in power and resolutions. It shows how couples may not realize the impact their lack of communication can have on their partner, especially if they are unaware that there is a conflict brewing. It looks at how open communication is the key to preventing any conflict from occurring, but in the chance that it does, couples need to assess the conflict and discuss it in a clear and concise manner before attempting a resolution. It discusses how intimacy is also an area of a marriage that requires mutual respect from each party and a desire to have a balance in regards to one's own needs and the partner?s. Once conflict has been resolved, the truest form of intimacy in a marriage will be uninhibited and free of stresses placed upon it from other areas of the relationship.
Outline
Introduction
Conflict Elements
Wilmot-Hocker Assessment
Nature of the Conflict Interests Power
Styles
Assessment
Personal Intervention
Attempted Solutions
Conclusion
From the Paper "Gender roles in a marital conflict can have an influential function in how gender sways a conflict and resolution. This does not only mean male and female roles within the marriage can sway the situation (i.e. ?I"m the man, I"m the boss of the house?) but also contribute to how communication is perceived and responded to. "Gender-related effects have been reported in perceived intensity of others' anger, interpretation of one's own affective state, expression of anger, conflict engagement strategies with partner, conflict management styles, and evaluation of spouses' messages during discussion of conflictual issues" (El-Sheikh, 2000)."
