New commission should balance differing government policy objectives

The Actuaries Institute has called for the establishment of an independent commission to balance policy objectives between government bodies and to promote better outcomes in Australia’s financial systems. 

The call came in the Actuaries Institute submission to the Financial Systems Inquiry which stated that the establishment of a Financial System Policy Commission (FSPC) would act as a 'third umpire’ but remain independent of government to ensure optimal policy outcomes.  

The Actuaries Institute stated the FSPC would be involved in policy discussions between the Australian Prudential Regulatory Authority, The Australian Securities and Investments Commission, The Reserve Bank of Australia, Treasury and the Australian Tax Office. 

However the FPSC would not take a lead role but balance the views of these bodies and act as an umpire when intersecting policy decisions of the various bodies needed to be clarified or resolved. 

“It is acknowledged that the Commonwealth Treasury has the primary role in formulating financial sector policy and is the key economic adviser to the Treasurer. We are not looking for more regulation, just more efficient regulation with a long-term focus,” the Actuaries Institute stated. 

“The FSPC would not assume those roles but could function in a similar manner to the Australian Government Productivity Commission which is the Government’s independent research and advisory body on all aspects of microeconomic reform.”