With the arrival of the new financial year, this edition of Regulator looks towards the future of regulation over the next 12 months and beyond.
We start the edition with a common theme of previous editions: the Financial System Inquiry (FSI). With the FSI’s interim report due to be released on 15 July, our dedicated team looks at some of the key themes that the FSI will be commenting and seeking further input on. In addition, we look at some of the themes which are not so obvious, such as efficient capital distribution and utilisation and how Australia can attract regional capital inflow by becoming a preferred direct investment destination.
From there we look at the future for ASIC following the Senate Inquiry’s report into the regulator’s performance. It’s possible, given the nature of the report, that we’re going to see a more aggressive ASIC with a focus on tougher enforceable undertakings, the pursuit of some large cases and greater surveillance of the financial services industry.
FATCA has been in the news a lot lately due to the signing of the intergovernmental agreement (IGA) (for more information, see our previous article), but what happens when obligations under the IGA and the new anti-money laundering (AML) rules go head-to-head? Add to the mix the proposed OECD Common Reporting Standard for Automatic Exchange of Financial Account Information (CRS) and you get a world of potential change in relation to customer identification.
Finally, we take stock and look at the next steps in the internationalisation of the Chinese Renminbi (RMB). There’s no doubt that it’s shaping up to be one of the most significant developments of the decade. Financial centres across the world are positioning themselves to assist China turn its ambitious aspiration into a reality. In Australia, strong policy development has shaped the financial architecture to support Australia’s engagement with China but, as in all financial markets, market confidence and liquidity remain essential pre-requisites to success.
Now that we’ve passed the half way stage of the calendar year, pace is beginning to gather in relation to the G20 and the FSI. We expect to see these two topics receive much attention in the months to come, so stay tuned for our team’s take on the major developments.