Government releases its Response to FSI Final Report.
The Government appears to have accepted almost all of the Inquiry’s recommendations and has also proposed additional measures that are consistent with the Murray Inquiry’s underlying philosophy.
The Government’s financial system program will be implemented in stages over the coming years and will involve further detailed consultations with stakeholders.
The program is made up of five distinct strategic priorities that deal with the challenges before us:
- The resilience measures aim to reduce the impact of potential future financial crises by ensuring Australia is better able to weather them and lessen their cost to taxpayers and the economy.
- The superannuation and retirement incomes measures aim to reduce the costs of the superannuation system to consumers, encourage the development of new retirement products and in doing so boost retirement incomes.
- The innovation measures will unlock new sources of finance for the wider economy and support competition and better facilitate technology-led innovation.
- The consumer outcomes measures are designed to give consumers confidence to participate in the financial system and the confidence that they are being treated fairly.
- The regulatory system measures aim to make regulators more accountable for their performance, more capable and more effective.
The specific measures in relation to each priority area are summarised in our Bulletin and more considered analysis from our industry experts will follow.