Despite Australia weathering the storm better than most, new research commissioned by the Financial Services Institute of Australia (FINSIA) claims the global financial crisis exposed real cracks and weaknesses in the nation’s regulatory framework.
The FINSIA research, to be launched by the Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen today, was conducted by FINSIA, senior industry figures and Access Economics.
Commenting on the research, FINSIA chief executive officer, Martin Fahy, said that while Australia’s robust regulatory framework has served it well during the GFC it could not afford to be complacent.
He said the weaknesses that had been identified needed to be openly discussed and appropriately addressed but in the context of maintaining a healthy balance between regulation, efficiency and innovation.
The man who co-ordinated the inquiry and a former member of the Wallis Inquiry, Professor Ian Harper, said the report was based on the view that any proposed changes to Australia’s regulatory framework should be developed according to a consistent conceptual framework, built upon the findings of previous reviews of the sector.
He said this approach would reaffirm the existing strengths of Australia’s regulatory system while identifying areas of possible weakness that might need attention.
