General Assembly Voting Chamber

Fair Depository Standards Act A resolution to enact uniform standards that protect workers, consumers, and the general public.

Category: Regulation

Area of Effect: Consumer Protection

Proposed by: Lusane

NOTING the World Assembly has a responsibility to ensure the vital protections of consumers in member nations. BELIEVING an organizational body is essential to spearheading policy change in regards to the practices of financial institutions, investment brokerages, and lenders. NOTICING a need to further legislation to regulate the practices of institutions that could render harm to a consumer's financial health. SEEKING to protect from predatory practices of institutions; and further mandate regulation for standards expected to protect consumer deposits. The World Assembly, therefore; DEFINES financial institutions as public or private, physical or electronically controlled corporations or government institutions, licensed or unlicensed, according to regulations in the applicable member nation; in which qualifies under at least one of the following: transacts, trades, or holds funds for a consumer in relation to a deposit based account of any type. transacts, trades, or holds funds for a government or institution in relation to a deposit based account of any type. DEFINES investment brokerages as public or private, physical or electronically controlled corporations or government institutions, licensed or unlicensed, according to regulations in the applicable member nation; in which qualifies under at least one of the following: with a purpose to hold or invest consumer funds in any brokerage with the intent to accrue dividends. with a purpose to hold or invest government funds in any brokerage with the intent to accrue dividends. DEFINES lenders as public or private, physical or electronically controlled corporations or government institutions, licensed or unlicensed, according to regulations in the applicable member nation; in which qualifies under the following: issues collateralized credit products or loans in which a security interest in the form of currency is placed in a transactional account. DEFINING financial institutions, investment brokerages, and lenders; hereinafter, collectively as “institutions”. ESTABLISHES the Depository Regulators Committee (“DRC”), a regulatory body under the World Assembly to supervise and render inspections and audits of member nation institutions for direct compliance with regulation for the protection of the consumer; ESTABLISHES that the DRC shall have the jurisdiction, with reasonable evidence to enact disciplinary actions, fines, or closures of institutions if they are found in violation of the provisions of this Act on a situational basis. CLARIFIES that institutions will be permitted to appeal any disciplinary actions to an independent agency, and further, be permitted to submit evidence in their defense and provide reasoning for a circumstance in order to revert any action taken. The World Assembly, therefore: REQUIRES institutions to hold capital reserve equal to or above nine and one-half percent of their depositor's accounts total value, to limit consumer exposure to insolvency. REQUIRES institutions to establish uniform disclosure conditions for interest accrued by and paid to consumers on depository accounts and collateralized holdings accounts. further: this provision shall require a statement made to the depositors upon account opening for applicable interest rates and how they are paid or accrued. REQUIRES institutions to submit to random audits from the DRC, in response to an inquest brought by an applicable member nation. PROHIBITS institutions from placing holds, freezes, or closures on depository accounts without reason. REQUIRES institutions implement systems to combat data errors in regards to account ledgers and information. REQUIRES institutions to keep accurate, up to date information for the institution's value, and share information with their depositors and the DRC in an annual report. ENCOURAGES member nations to establish regulation in their jurisdiction to establish further consumer protections.

(This post was last modified: 04-20-2019, 02:25 AM by Amerion.)

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His Supreme Overlord, the venerable Admiral General Stewie Griffin —

shall be voting NAY on this resolution and urges his counterparts in the High Council of World Dictators to do likewise.

This resolution, written no doubt by a money-hating anti-capitalist pro-society fool, will, if passed, mark the beginning of the end! It is not enough that the free peoples of NationStates are subjugated to the demonic oversight of a bureaucratic monstrosity governed by a cult of childless technocrats, but that we should now further establish a 'Depository Regulators Committee' is beyond the pale. Taken individually, every single word in that name is an insult to the hard-working managers and corporate executives who toil day and night to ensure that their magnificent companies can fulfil their statutory obligations to the angels they call shareholders, and together, this despicable World Assembly might as well begin strangling our beloved corporations with yet another corporate nuisance. Consumer protections? Never in my 8 months of life have I ever heard of a more ruinous concept!

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His Majesty, Admiral-General Stewie Griffin, the Magnificent Supreme Overlord of all of NationStates, King of Kings, Democratic President and Prime-Minister-For-Life, Invincible and All-Triumphant Lord Commander, Chief Ophthalmologist and board-certified OB-GYN, Brilliant Genius of both Humanity and Martians, Noble Prize winner in everything but Peace, and Benevolent Oppressor and Ruthless Protector of the Expendable People of Amerion <3

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Volaworand is voting against this blatant attack on domestic commerce.

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Legislator | Local Councilor | Aspiring TSP Curmudgeon
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Poppy is voting no cause it would hurt her stats :p

Nation: 073 039 109 032 080 111 112 112 121
I'm more active gameside than here but either place I'd love to talk ^-^

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