ASIC has released its submission to the 2014 Financial System Inquiry.
The submission sets out ASIC’s role and how it has been shaped by the economic philosophy underlying the Australian financial services regulatory regime. It details why regulation is important to the participants and consumers of financial markets, and includes key considerations for the future regulatory system, regulatory architecture, alternative regulatory forms, and the importance of competition.
The submission also provides an overview of developments in the financial system in areas within ASIC’s regulatory responsibility, and emerging challenges.
Further, ASIC outlines some issues for further consideration by the Inquiry. Topics include:
- ensuring the superannuation system better meets the needs of the retirement phase
- lifting standards in financial advice
- strategic participation in global financial markets
- managing systemic risk
- improving conduct through a more flexible regulatory toolkit
- ensuring that regulatory decision making better incorporates competition considerations
- penalties that provide the incentive for better conduct, and
- a better funding model for ASIC.