The Government is pleased to announce the appointment of Mr David Murray AO to head an inquiry into Australia’s financial system.
The inquiry will make recommendations to foster an efficient, competitive and flexible financial system, consistent with financial stability, prudence, integrity and fairness. This should result in less costs, lower fees and greater efficiency in the allocation of capital.
As part of our broader deregulation agenda, the Government intends to reduce the regulatory burden on the financial services sector wherever the benefits to competition, efficiency, market stability or consumer protection are questionable.
It is 16 years since Mr Stan Wallis AC led a similar inquiry and 32 years since Sir Keith Campbell undertook the first major investigation into Australia’s financial system. The findings of both these inquiries led to major reforms.
Mr Murray will head a Committee of four eminent Australians drawn from the finance, business and academic sectors.
The inquiry’s scope will reflect the Government’s desire for a ‘root and branch’ examination of the nation’s financial system.
Among its considerations, the inquiry will be asked to report on:
- How the financial system can more efficiently allocate Australian sourced capital to minimise our exposure to volatility in global capital markets;
- How we can best balance competition, innovation and efficiency, with stability and consumer protection;
- The role and impact of new technologies, market innovations and changing consumer preferences; and
- International integration, including international financial regulation.
In its deliberations, the Committee will draw on the expertise of a Special External Council comprising five international business people to specifically advise on matters relating to international competitiveness and offshore regulatory frameworks and related issues.
Draft Terms of Reference for the inquiry are being released for a two week consultation period. Following feedback, final terms of reference and the final composition of the inquiry will be announced in mid-December, with the inquiry to publish an interim report by September 2014 and deliver a final report by November 2014.
The draft Terms of Reference can be viewed on the Treasury website.