Speaking at ASIC's annual forum, Australia's regulatory chiefs stress their intention to uphold enforcement activities in the coming year
Three of Australia's top regulators have emphasised their commitment to prioritising consumer protection and addressing the corporate transition to green energy.
Speaking at the annual forum of the Australian Securities and Investments Commission (ASIC), the regulators acknowledged the frenetic nature of 2023 but stressed their intention to uphold enforcement activities in the coming year, according to a report by The Australian.
ASIC Chair Joe Longo highlighted the regulator's focus on safeguarding vulnerable Australians, indicating that the recent action taken against Westpac was not the last intervention against companies failing consumers. Longo asserted that it was "simply unacceptable" for companies to conduct business and provide services in an unregulated manner, The Australian reported.
“As a society, a civil society, we value regulation, because it helps draw the guardrails around what’s acceptable and what isn’t,” Longo said. “The same people who are worried about regulation being in the way also want certainty, so the well run businesses want to know what’s reasonably expected of them by law and by regulation.”
Considering the need for coordinated regulatory efforts, Longo expressed openness to adopting a regulatory grid model similar to that of the UK's Financial Conduct Authority. Such a model could provide the regulated population with a clearer understanding of regulatory requirements and expectations. Longo also acknowledged the rising expectations placed on regulators and banks by the public, underscoring the challenges faced by all parties involved, The Australian reported.
The meeting between ASIC, the Australian Competition and Consumer Commission (ACCC), and the Australian Prudential Regulation Authority regulator served as one of several gatherings aimed at discussing pertinent issues.
ACCC Chair Gina Cass-Gottlieb emphasised the need for regulators to prioritise areas where harm to consumers is most significant. She noted that pressures related to the cost of living and volatility in financial markets have created demands for regulatory intervention within the community, according to The Australian. Cass-Gottlieb also highlighted the uncertainties surrounding the energy transition and digital transformation, emphasising the regulator's role in mitigating risks borne by the public.
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APRA Chair John Lonsdale commended the country's regulatory regime for maintaining a well-capitalised and stable financial sector. While acknowledging the testing times faced due to the collapse of Silicon Valley Bank and disruptions around Credit Suisse, Lonsdale praised the resilience displayed by Australia's financial institutions.
He highlighted APRA's close monitoring of banks' use of hybrid instruments and their proposals to further strengthen the financial system. Lonsdale also emphasised the significance of the performance test for superannuation providers in catering to the needs of retired Australians.
“We’ve spent a lot of time in APRA really building an armour-plated financial system,” he said.
Addressing concerns about proportionality and cost, Lonsdale said that APRA carefully considers the impact of new standards on companies before implementation. The Australian reported. This statement followed APRA's recent announcement regarding changes to liquidity standards and increased capital requirements for banks, which aim to enhance financial stability. While acknowledging the potential impact on smaller banks, Lonsdale reiterated APRA's commitment to making informed decisions with a deep understanding of the industry's dynamics.
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