Navigating Financial Regulatory Reform In Australia - Industry Examination

For Immediate Release: Tuesday 13 October 2009



Navigating financial regulatory reform in Australia industry examination

- In-depth review released -

Finsia the Financial Services Institute of Australasia will today launch an extensive report which
examines Australia's experience of the global financial crisis (GFC).The report identifies issues that
need to be addressed if Australia's financial regulatory system is to maintain its leadership position
globally, post the GFC.

Finsia commissioned Access Economics to undertake the review, following concerns that
Australia's comparatively benign experience of the GFC could lead to complacency, and that
international regulatory contagion could have a detrimental impact on Australia's financial services
industry.

The report Navigating Reform: Australia and the Global Financial Crisis examines the current
conceptual framework which underpins banking and financial services regulation in Australia and
provides recommendations on the issues that need to be addressed as part of the regulatory
reform process. The Hon. Minister Chris Bowen MP, Minister for Financial Services,
Superannuation and Corporate Law will provide the keynote address at the report launch today.

Commenting on the policy research initiative, Dr Martin Fahy, Chief Executive Officer of Finsia,
stated: "This report represents a collaborative effort between Finsia, senor industry members, and
Access Economics. While Australia's robust regulatory framework has served us well during the
GFC we cannot afford to be complacent. We must ensure that we maintain our comparative
advantage in the region and continue to play a leadership role in bringing forward appropriate
global regulation."

"The GFC exposed real cracks and weaknesses in our regulatory framework. These need to be
openly discussed and appropriately addressed, but in the context of maintaining a healthy balance
between regulation, efficiency and innovation. Finsia intends for this report to provide a framework
for considering and prioritising future regulatory and structural changes, while enhancing the
regional aspirations of Australia's financial services industry," added Dr Fahy.

The report is structured around four key questions that arise from Australia's experience of the
GFC. These include:

- Why was Australia's experience of the GFC comparatively benign?

- What have we learned about financial markets and their regulation?

- How might we change our regulatory arrangements in light of the GFC?

- Can Australia's experience of the GFC be used to press our strengths as a regional
financial centre?

Professor Ian Harper (former member of the Wallis Inquiry), who lead the study on behalf of
Access Economics said: "This report is based on the view that any proposed changes to Australia's
regulatory framework should be developed according to a consistent conceptual framework, built
upon the findings of previous reviews of the sector, most notably, the Financial System Inquiry (the
Wallis Review) of 1997. This approach would reaffirm the existing strengths of Australia's
regulatory system, while identifying areas of possible weakness which may need attention."



Finsia Financial Services Institute of Australasia ACN 066 027 389, Level 16, One Margaret Street, Sydney NSW 2000
T +612 9275 7900 F +612 9275 7999 E [email protected] W www.finsia.com




"The current global focus on regulatory standards and the future impact of regulatory reform opens
a window of opportunity for private enterprise, regulators and governments to promote Australia as
a preferred financial centre in the Asia-Pacific region," concluded Prof. Harper.

ENDS
Notes to Editors:

About Finsia
Finsia the Financial Services Institute of Australasia has a combined wealth of experience in the financial
services industry dating back to 1886.

As the only professional association representing the entire spectrum of financial services throughout
Australia and New Zealand, its reach extends to more than 17,000 individual professionals working across the
broad categories of banking, wealth management and capital markets.

Finsia plays a vital role in protecting the industry's strength and competitiveness in today's evolving global
marketplace through its core purpose of helping members succeed in their careers and supporting the growth
and development of the financial services industry.

This is achieved through the provision of relevant and high quality professional development programs, a
comprehensive suite of career support services and an extensive range of industry-leading information
resources and publications. Finsia's leadership, research and policy-setting initiatives also play a critical role
in promoting industry growth both regionally and around the world.

For further information about Finsia, visit: www.finsia.com

About Access Economics
Access Economics is Australia's premier economic consulting firm. We provide expert economic advice for
business, government and industry groups. Our expertise in analysis, modelling and forecasting is unrivalled
and we have developed an international reputation for integrity, quality and independence.

Founded in 1988, Access Economics' highly qualified and experienced consultants are known for analytical
excellence.

The Directors, consultants and staff have an extensive range of business, policy and academic experience.
Access Economics provides consultancy services covering economic policy, economic modeling, forecasting
and commentary.

We provide clients with advice that is independent, robust and practical. In economic policy, our advice must
be capable of withstanding rigorous scrutiny from the private and public sectors. Our reputation has been built
by delivering on this aim.

For media enquiries or if you are interested in receiving a copy of the Navigating Reform: Australia
and the Global Financial Crisis report please contact:

Finsia
Rachael Norcott, Manager - Policy and Public Relations, Finsia tel: +612 9275 7923 M: 0419 179 995 or by
email: [email protected]







Finsia Financial Services Institute of Australasia ACN 066 027 389, Level 16, One Margaret Street, Sydney NSW 2000
T +612 9275 7900 F +612 9275 7999 E [email protected] W www.finsia.com