The twin peaks model of regulation has now operated in Australia for many years. It should be maintained and strengthened. But there should be some adjustments made in respect of the regulation of superannuation and the BEAR. As I said Read More …
Category: Regulators
9.2 The appropriate oversight body
It remains to be determined which entity should assume responsibility for the additional oversight and assessment I have recommended. Mr Shipton suggested that the Council of Financial Regulators (CFR) – a body constituted by the heads of the financial regulators Read More …
9.1 The additional oversight required
The essential role of the oversight body should be to assess: the effectiveness of each regulator in discharging its functions and meeting its statutory objects; the performance of the leaders and decision-makers within the regulator; and how the regulator exercises Read More …
9 A new oversight authority
The need for a permanent oversight body gives rise to the further questions: What oversight is required, and who should undertake that work?
8.2 Additional oversight required
Each body with an oversight role in respect of APRA or ASIC serves an important, but limited, function. The current framework is heavily focused on governance and financial accountability.[1] None of the existing processes requires regular and systematic review of Read More …
8.1 Existing mechanisms
8.1.1Parliamentary oversight ASIC’s principal external oversight body is the Parliamentary Joint Committee on Corporations and Financial Services.[1] The Joint Committee consists of 10 members, five from each House of Parliament.[2] Its duties are prescribed by section 243 of the ASIC Read More …
8 External oversight
As I have said, the Terms of Reference direct me to consider ‘the effectiveness and ability of regulators of financial services entities to identify and address misconduct by those entities’. The role and effectiveness of external oversight is relevant to Read More …
7.4 Periodic capability reviews
The pace of change in the finance sector must be responded to by its regulators. As the market moves, regulators should consider if their structure and processes remain appropriately adapted to market conditions. ASIC has recently undergone a capability review. Read More …
7.3 An accountability regime
The essential thesis that informs the BEAR is that a sound risk culture coupled with effective corporate governance and the imposition of stronger consequences will improve accountability. Improved accountability ultimately translates to improved performance. APRA has said that the establishment Read More …
7.2 Formalisation of procedure
The APRA Act contains provisions dealing with the times and places of meetings, the quorum required, who is to preside, how voting is to occur and the passing of resolutions without meetings.[1] There are no analogous provisions in the ASIC Read More …