“Regulation 9” is the name of the area where all the sick and malnourished aliens were sent after their ship was discovered hovering above Johannesburg, South Africa. Eh...wait a second. That’s the premise behind District 9, a sci-fi movie that came out in 2009. Let’s try this again.
“Regulation 9” is a policy that allows national banks to act as fiduciaries. This means they can handle stocks and bonds, manage investment funds, and act as financial trustees. Regulation 9 only applies to national banks, and they can only get their fiduciary-ness on in states that don’t have laws against it. There are lots of rules that guide the types of funds a bank can offer and how the banks are supposed to monitor and report their fiduciary activities, just so the government can be sure they’re not being shady.
So maybe Regulation 9 isn’t quite as fascinating as a camp for sick extra-terrestrials, but it does give banks—and their clients—easier access to certain investment opportunities. Which is pretty cool.
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Finance: What does it mean to have fiduc...51 Views
Finance a la Shmoop! What does it mean to have fiduciary obligation? Alright well
fiduciary refers to the responsible person, who has oversight, above a given
financial transaction, or process. That is, it is the fiduciary obligation, of the
head of a corporation's Audit Committee, to be certain that the
accounting process is handled fairly, objectively, inclusively and thoroughly [boss overseeing worker]
and there are a few other ly's in there, but well you get the gist. Doesn't it
seem strange, that some companies just seem to get into the same kind of
trouble again and again. Remember the BP oil spill, well it wasn't the first time
they'd had, an accident. You know, if you can call that spill only an accident.
What kind of oversight did they have? Any? Well some companies just have a [man carrying oil barrel
corporate culture that's run by the notion, that well, whatever isn't caught
as a crime, is legal. Lots of Wall Street stock brokerages came and went this
way. Yah, remember the Wolf of Wall Street? Kind of like that. Well what is
the obligation of a responsible party when faced with ethical dilemmas? Where
does the obligation start and stop? Should fiduciaries be held to a higher
personal standard than normal people? Yah, kind of the, you know, Harvey
Weinstein effect there. Yes, No, maybe, alright. Right, all three times. [question ABCD chart]
It's definitely yes, no, or maybe.
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