Financial markets


October 20, 2015 8:29 AM | Posted by Batten, Richard | Permalink
The Government has released its response to the Financial System Inquiry's Final Report which includes specific measures which the Government plans to implement before the election and beyond. read more
December 16, 2014 9:35 AM | Posted by Paul Schoff, Eric White | Permalink
In commenting on the design of Australia's superannuation system, the Inquiry draws on Chilean experience. Regrettably and perhaps unwittingly, the Inquiry also seems to have drawn on the early 1970s Chilean socialist experiments with Big Data in developing its thoughts and recommendations around access and use of private sector data. read more
December 11, 2014 5:12 PM | Posted by Richard Batten | Permalink
While we welcome the final report of the Financial Systems Inquiry and its recommendations, we are concerned that there is a risk of fragmentation or cherry picking if some elements are addressed and not others. read more
December 8, 2014 5:59 PM | Posted by Richard Batten, Stuart Johnson | Permalink
The Final Report of the Financial System Inquiry was released on the weekend. Here, we discuss key points arising from the Report and Mr Murray's speech to CEDA. 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 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 ...

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
March 26, 2014 9:12 AM | Posted by Mark Standen, Siobhan Doherty | Permalink
The terms of reference of the Financial System Inquiry include how governance structures across the financial system affect stakeholder interests, and how they may drive further change in the global and domestic financial system. Our new video discusses what aspects of corporate governance of financial services institutions may be of interest to the Inquiry. read more
March 21, 2014 3:21 PM | Posted by Richard Batten, Tim Sutton | Permalink
In order to pre-empt the challenges and opportunities of the coming decades, the Financial System Inquiry will need to consider a number of significant trends. For example, the impact of China and other Asian countries as consumer economies is increasing. Our financial system will also need to be prepared for the oncoming demographic change in Australia's population.
read more
March 14, 2014 1:00 PM | Posted by Richard Batten, Tim Sutton | Permalink
It's been 17 years since Australia's last inquiry into its financial system. A lot has changed since the Wallis Report in 1997. Why the need for a new inquiry? What has changed since Wallis made his recommendations? read more