Australia needs a financial services agency: FSC

The Financial Services Council (FSC) has called for a new Australian Securities and Investments Commission (ASIC) commissioner to look after international regulatory issues.

In its submission to the Financial Services Inquiry (FSI), the FSC has called for the establishment of an agency to manage and promote financial services.

The FSC is calling for the set-up of a financial services agency like the TheCityUK or the Hong Kong Financial Services Development Council.

That way, Treasury, the Australian Tax Office, the Department of Foreign Affairs and Trade, ASIC, the Reserve Bank of Australia and the Australian Prudential and Regulation Authority can combine Australia's regulatory and international process.

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"Fragmentation has meant Australia has not capitalised on cross-border opportunities where we have a comparative advantage," Brogden said.

"A new ASIC commissioner dedicated to financial services would be able to facilitate market access through implementation of current free trade agreement."

While Australia's Council of Financial Regulators (CFR) is an advisory body with representatives of ASIC, RBA, Treasury and APRA, coordination is mandated through memorandum of understanding rather than through legislation.

But international integration and Australian competitiveness is not in CFR's mandate, and it does not suit the model for a coordination body as it is an advisory board.