July 2014

July 17, 2014 12:54 PM | Posted by Paul Schoff | Permalink
One interesting observation to come out of the Interim Report is about technological change and the role of 'big data' customer analytics in the general insurance context. It is competition among general insurers which has been a driver of the quest to gather and use customer data to more accurately price of risk. read more
July 16, 2014 2:42 PM | Posted by Richard Batten | Permalink
An area of real concern raised in the Interim Report is about the effectiveness of disclosure in enabling consumers to make decisions. The report indicates that the current disclosure regime is not effectively serving consumers. read more
July 16, 2014 2:37 PM | Posted by Richard Batten | Permalink
The release of the interim FSI report identifies some significant areas where changes to the system need consideration. The key touchstones of the Inquiry for assessing the performance of the financial system and its regulatory structure are efficiency, stability and fairness. read more
July 16, 2014 12:40 PM | Posted by Maged Girgis | Permalink
Importantly, the Inquiry's report questioned the role that both overregulation and inefficient regulation play in increasing the costs of superannuation. This is a significant question for not only those in the industry, but also the members who ultimately absorb the costs. read more
July 16, 2014 8:54 AM | Posted by Harry Aitken | Permalink
Technology is having a dramatic influence on the state of the Australian financial system. Developments in consumer forums, data collection methods, transactional mechanisms and cloud technology have spawned new products, services and market entrants. read more
July 15, 2014 3:32 PM | Posted by Payne, Karen | Permalink

The Financial System Inquiry Interim Report (the Report) has identified taxation as one of three main sources of distortions which hamper the operation of price mechanisms that would otherwise promote an efficient allocation of funding and risk (the other two being regulation and market imperfections).

The Report is somewhat restrained in its comments on specific tax reforms, and defers to the Tax White Paper due out in 2015.  However it does make comment on the need to retain dividend imputation.  The Report suggests that the case for retaining dividend imputation is now less clear than it was in the past and may act as a subsidy to domestic equity. However, some tax distortions are intentional and by design and provide intended integity benefits, which will need to be considered and weighed against any potential adverse distortions.  These issues are sensible to defer to the Tax White Paper ...

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July 15, 2014 11:43 AM | Posted by Richard Batten | Permalink
The Financial System Inquiry's interim report was released today, and covers a wide range of observations and options. read more
July 9, 2014 4:08 PM | Posted by Ellicott, Thomas | Permalink
Our current Twin Peaks model relies heavily on the capacity of ASIC and APRA to manage systemic risks facing the financial sector, but is this approach sufficient? Indeed, one question that should be a central focus of the FSI is how we can best structure our regulatory framework to navigate macro-scale risks. read more
July 7, 2014 9:09 AM | Posted by Gillian Brown, Melanie Wong | Permalink
One issue that the Inquiry will report on is the role and impact of new technologies, market innovations, and changing consumer preferences and demography on the financial system. read more