ASIC's growing regulatory perimeter
The chairman of the Australian Securities and Investments Commission (ASIC), Greg Medcraft, has outlined the challenges confronting the regulator, including what he describes are a "growing regulatory perimeter", a greater range of products and more investors.
Addressing the Asia and Oceanian Stock Exchanges Federation, Medcraft included in ASIC's regulatory perimeter the superannuation industry, within which he said it was estimated that funds under management in the sector would rise from $1.3 trillion to nearly $3 trillion over the next decade, and then to $5 trillion by 2030.
As well, the ASIC chairman cited the fact that more products, more investors and more money to invest increases value to the economy and capital for exchanges, but increased overall risk in the financial system.
He said this was allied to the challenge created by the fact that the complexity in the financial system was growing.
"Advances in technology have led to increasingly complex financial products, information channels, and financial markets," Medcraft said.
"Technology is advancing at a rapid rate and the complexity it brings also increases risk in the system."
He said that in the face of this, ASIC would be adopting a proactive approach to regulation.
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