David Murray has delivered his Financial Systems Inquiry (FSI) report.
The Australian Security and Investment Commission (ASIC) needs to be stronger with greater powers to tackle breaches in regulation. This should be funded by fees and levies paid by those in the industry, as is the case with the Australian Prudential Regulation Authority (APRA). A further recommendation is that there should be a new financial regulation assessment board to advise the government on the performance of regulators.
Consumers need more guidance about the level of cover required to replace income and contents following an insurance event. If insurance agencies fail to provide such transparent guidance, then the Government should look to introduce new laws which automatically provide this information to consumers when they are renewing or purchasing a policy.
While the FSI recommendations will ultimately benefit the majority of Australians, the big banks, financial institutions and retailers are all set to take a hit. Steven Münchenberg, chief of the Australian Bankers’ Association, said “The question we, and the government, must ask on each of these recommendations is simply, does it help or hinder our future economic growth? A careful analysis of each recommendation on this basis is now needed”.
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Do you think the Financial Services Inquiry goes far enough? Are there are aspects which concern you? Or do you feel consumers will benefit in the long run.
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