You’ll be reassured to know that:
SENIOR bankers are coming to the view that the David Murray-chaired financial system inquiry will set aside submissions from key regulators and push for a simplified regulatory structure in its final report, due in November.
…While careful not to give too much away, the chairman, according to sources, has often spoken about the industry’s multiplicity of regulators, including the Reserve Bank, the Australian Prudential Regulation Authority, the Australian Securities & Investments Commission and Austrac, and hinted at his desire for a simpler system.
“David has always been a buyer-beware type of person, which fits with the government’s agenda to slash regulation and red tape,” one banker said.
“It’s an inconvenient time (with the Commonwealth Bank financial planning scandal) to talk about simplifying regulation so it might be downplayed in the interim report, but in the longer term he’s definitely got the regulators in his sights.
“When he says simplification, he actually means less regulation and maybe less regulators.”
“Inconvenient time”. Who are these people?
Not much to go on here and perhaps it’s scuttlebutt. As well, the regulatory structure does need an overhaul. The current macroprudential impasse between the RBA and APRA is proof of that. And why secruitisers are regulated by a compromised ASIC I’ll never know. The Council of Financial Regulators is an obvious place to look for greater integration.
But such shifts would mean more regulation not less and one has a bad feeling about it all. Let’s hope the Murray Inquiry can overcome its terrible conflicts.
