FSC calls for financial services consolidation
The financial services sector needs a new Australian Securities and Investments Commission (ASIC) commissioner specifically to deal with international regulatory issues.
That is the pitch from the Financial Services Council (FSC) in its submission to the Financial System Inquiry (FSI), which also wants an agency set up to manage and promote financial services.
"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."
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.
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.
"Australian regulators' cooperation arrangements need to be enshrined in legislation and international integration issues should be included in their mandates," the FSC said in its submission.
AUTHOR
Malavika Santhebennur
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