The Government has appointed former Commonwealth Bank and Future Fund chief: Mr David Murray AO, to head an inquiry into Australia’s financial system.

The PM said the inquiry will make recommendations to foster an efficient, competitive and flexible financial system, consistent with financial stability, prudence, integrity and fairness. He said that, as part of the Government’s broader deregulation agenda, it intends to reduce the regulatory burden on the financial services sector wherever the benefits to competition, efficiency, market stability or consumer protection are questionable.

Mr Abbott said the inquiry’s scope will reflect the Government’s desire for a “root and branch” examination of the 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 Australia’s exposure to volatility in global capital markets.
  • How Australia 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.
  • International integration, including international financial regulation.

Draft Terms of Reference for the inquiry have been released for a 2-week consultation period. Following feedback, final terms of reference and the final composition of the inquiry will be announced in mid-December 2013, with the inquiry to publish an interim report by September 2014 and deliver a final report by November 2014.

Source: Prime Minister’s media release, 20 November 2013

[LTN 226, 21/11/13]

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