The financial crisis has heralded unprecedented reform. This reform has not only affected financial services companies, it has also impacted regulators and their approach to regulation and enforcement.
Our #RegTrends report aims to assist clients keep on top of regulatory risks. It examines trends in recent enforcement outcomes and our expectations going forward. Our 2015 report looks at our three main regulators: ASIC, APRA and Austrac.
For example ASIC has been under intense scrutiny for its response to certain complaints about particular providers in the aftermath of the financial crisis. This has led to a bruising senate inquiry. Over the last five years we have seen an increase in enforcement including litigation, investigations, enforceable undertakings and infringement notices. ASIC is clearly changing the way it approaches enforcement and we expect that to continue.
Regulators also face budgetary pressures and the Government favours a more user pays funding model. This is likely to also influence the enforcement tools used by regulators and which misconduct they take action on.
Consultation on the Australian Financial System Inquiry came to a close on 31 March 2015 and what the Government decides to do with the recommendations will further impact regulators and financial system participants.