Finance Guide

The term investment statement is used in a number of contexts in different countries. Sometime those with interest-earning bank or building society accounts are issued statements on a yearly basis, indicating how much interest they earned during that year. This is often required for tax purposes.

In some countries, companies issue investment statements, describing the nature of the company, its activities within the market place, any forms of debt finance the company employs and what investors can expect if they buy the company’s bonds.

By law, investment advisors are often required to issue investment statements if asked to do so. The statements should describe any relevant criminal convictions the investment adviser has, whether he or she is able to give broad-ranging investment advice or only within a narrow field, whether the investment adviser is paid for recommending certain investment products rather than others. These laws were created because of concerns that some people were being deceived by investment advisers who were being paid a commission for recommending products from specific companies. In many cases, those being advised were not aware of these connections and had no easy way to find out about them. The law was designed to provide transparency to potential investors.

According to wikipedia corporate governance means the set of procedures, customs, guidelines, regulation and institutions affecting the way a corporation is directed, managed.

It is a type of system by which corporate business houses are controlled and directed. Corporate governance includes law responsibilities as well as social, environmental and moral responsibilities.

As defined by corporate charter corporate governance is the relation between shareholders, directors, independent directors, board and management of the company.

Financial law is that area of the law which regulates the provision of financial services. Its goals, in general, are to support transparency in the provision of these services, and to instil confidence in prospective purchasers of these services that the transaction will be conducted on a fair basis. Since the world of finance can be extremely complex, and many financial services involved paying sums of money upfront in the expectation of receiving greater sums of money in future, it is clear that, without a firm foundation of law to keep potential malefactors in check, purchasers of financial services would be at high risk of exploitation. This risk might well deter them from making use of financial services at all, causing them instead to hoard any surplus savings at home. Ultimately, this practice would have a damaging effect on the economy as a whole, because the savings would be idle rather than being used for productive purposes, as they would be if placed in the care of a financial institution.

Violations of financial law can result in extremely complex litigation. Some have persistently argued that many financial complaints, such as those involving fraud, are too complex for juries to understand and that instead the cases should be decided only by a judge so that the buyers can get fair claims and judgement.