Restoring Confidence in Consumer Financial Protection Regulation in Australia: A Sisyphean Task?

36 Pages Posted: 16 Apr 2019

See all articles by Andrew Schmulow

Andrew Schmulow

University of Wollongong, School of Law; Clarity Prudential Regulatory Consulting Pty Ltd; Oliver Schreiner School of Law; Centre for International Trade

Karen Fairweather

University of Auckland

John Tarrant

The University of Western Australia Law School

Date Written: October 1, 2018

Abstract

Consumer financial protection and the integrity of the Australian financial system are critical to the Australian economy in many ways, including the provision of an effective banking system, and the security of Australia’s significant superannuation savings. This is especially the case in an environment where financial products have become more complex and difficult for consumers to understand. In recent years there have been several scandals in Australia’s financial sector that have undermined confidence in the financial system, and exposed regulatory failure. The authors argue that there needs to be a more effective oversight of the key regulators in the Australian financial system to maintain confidence in the system, and prevent capture of the regulators by the financial services industry. The authors argue that the recommendation of the Financial System Inquiry that there be an Assessment Board to provide continuous oversight of the financial regulators is an effective solution to the poor regulatory outcomes encountered in Australia in recent years. The consequences of not having such oversight are likely to be more financial scandals, and further instability in the financial system. The authors argue that the time to address these deficiencies is now.

Keywords: Twin Peaks, regulating the regulator, capture, good conduct, financial system, financial system architecture, Board of Oversight, Sentinel, Financial Regulator Assessment Board, Banking Royal Commission

Suggested Citation

Schmulow, Andrew and Fairweather, Karen and Tarrant, John, Restoring Confidence in Consumer Financial Protection Regulation in Australia: A Sisyphean Task? (October 1, 2018). Available at SSRN: https://ssrn.com/abstract=3357352 or http://dx.doi.org/10.2139/ssrn.3357352

Andrew Schmulow (Contact Author)

University of Wollongong, School of Law ( email )

Northfields Avenue
Wollongong, New South Wales 2522
Australia

Clarity Prudential Regulatory Consulting Pty Ltd ( email )

Level 5, 306 Little Collins Street
Melbourne
Victoria, Victoria 3000
Australia

HOME PAGE: http://www.clarityprc.com.au

Oliver Schreiner School of Law ( email )

PBag X3, WITS
2050 Johannesburg
South Africa

Centre for International Trade ( email )

206 International Hall
Seoul 110-745, 110-745
Korea, Republic of (South Korea)

Karen Fairweather

University of Auckland ( email )

Private Bag 92019
Auckland Mail Centre
Auckland, 1142
New Zealand

John Tarrant

The University of Western Australia Law School ( email )

M253
35 Stirling Highway
Crawley, Western Australia 6009
Australia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
26
Abstract Views
450
PlumX Metrics