On coming into office in 2013, the Government inherited a financial system in need of reform. While the system had withstood the challenges of the global financial crisis, high profile financial collapses had highlighted gaps in how the regulatory framework protected consumers and investors and there was a clear need to further improve its resilience.
As part of the Government’s comprehensive economic reform agenda, in 2013 we established the Financial System Inquiry (FSI), a root and branch examination of Australia’s financial system. Since the release of the Government response to the FSI in 2015, the Government has diligently been implementing its recommendations.
Those reforms, and other measures announced subsequently, have made significant progress in ensuring the financial system is resilient, treats consumers fairly and is overseen by effective regulators. The Government has also promoted innovation and competition, the benefits of which are already evident.
This response, coupled with the reforms already made or in the process of being implemented, represent the most significant changes to the financial system in a generation.