20 October 2016
Sydney, 20 October 2016: The Australian Bankers’ Association has today welcomed the announcement of the Australian Securities and Investments Commission Enforcement Review Taskforce and terms of reference.
“The strength of the regulator is an important factor in people’s trust in financial products, financial services and financial markets,” ABA Executive Director – Retail Policy Diane Tate said.
“It’s appropriate that from time to time ASIC’s remit and enforcement powers are reviewed to ensure they remain relevant.
“It will be important for the review to give broad consideration to the regulatory settings and how ASIC performs its functions, so the financial system can continue to deliver economic growth, competition, innovation, financial stability and consumer protection.
“The review should also look at specific areas, like giving ASIC more flexibility when granting or refusing to grant licences to financial services and credit providers, and how breach reporting by licensees can be improved,” she said.
This review is occurring alongside other initiatives to ensure the strength of the regulator coming out of the Financial System Inquiry, including the ASIC Capability Review, an industry funding model for ASIC, removing regulatory barriers to innovative disclosure in banking and financial services, and introducing a new product distribution obligation and product intervention power.
“Supporting ASIC as a strong regulator is part of the banking industry’s comprehensive reform program to enhance customer protections, increase transparency and build trust and confidence in banks,” Ms Tate said.
“We look forward to working with the Federal Government, the Taskforce and other stakeholders throughout the review.”
Contact: Stephanie Arena 0477 470 677 or Nic Frankham 0435 963 913
“Australian banks are certainly better equipped now than they were in the GFC. They’ve got 2 to 2.5 times the capital reserves put aside for a rainy day than they had in the GFC”
“The Australian Banking Association (ABA) welcomes the agreement reached today on the proposed safeguard mechanism reforms, given it paves the way for the passing of a critical piece of legislation for Australia.
“This is about engaging with the entire banking ecosystem in order to ensure the accessibility of the sector’s services are best serving our diverse community now, and into the future.”