The Australian Centre for Financial Studies (ACFS) welcomes the Federal Government’s response to the 44 recommendations as part of the Financial System Inquiry, which was chaired by former Commonwealth Bank chief David Murray.
Professor Kevin Davis, Research Director at ACFS, served as a panel member of the FSI.
Many of the issues raised through the FSI process have been taken up through Stage 1 and Stage 2 of “Funding Australia’s Future,” a three-year research project undertaken by ACFS. Stage 1 reports were released just prior to the announcement of the FSI, while Stage 2 papers were released just prior to the Interim Report.
Stage 3 reports will be launched on Wednesday, 21 October, with a keynote speech by Rupert Jolley, Chief Advisor to the Treasurer.
The final FSI report contained 44 recommendations speaking to the resilience of the financial system, superannuation and retirement incomes, innovation, consumer outcomes and the regulatory system. Through Funding Australia’s Future (FAF) and forums such as the Melbourne Money and Finance Conference, ACFS has endeavoured to support research that contributes to the body of evidence informing the public policy recommendations within the FSI.
ACFS is pleased to see the Government adopt the majority of recommendations made in the FSI, and go even further to introduce their own measures to strengthen the financial system. This reflects the high value the Government places on the role of financial services.
“A number of specific recommendations put forward by the FSI have already been implemented, particularly those focused on resilience” said Amy Auster, Executive Director of ACFS. “Today’s response goes well beyond incremental change. It is a refreshed vision for the financial services industry, and very much takes on board the FSI’s focus on removing distortions while ensuring robust competition, including through innovation.
“The financial services industry is a cornerstone of the Australian economy – it is the largest industrial segment of the Australian economy, the largest payer of corporate tax, a major employer of highly skilled workers and – according to analysis done by ACFS earlier this year – most likely the largest source of services exporter as well,” Ms Auster said. “The government’s response to the FSI is not just about the financial services sector, it really is about the whole economy.”
“The opening up of the superannuation sector to competition, as well as the measures around innovation – including the plan to work in trusted digital identities, the Asia Regional Funds Passport and simple corporate bonds – are all areas where ACFS has already contributed substantial research, recognising the importance of these issues going forward.”
- “Dividend Imputation and the Australian Financial System: What do we know?” by Professor Kevin Davis, University of Melbourne and ACFS Research Director
- “Big and Better Data, Innovation and the Financial Sector,” by Dr Ian Opperman, CSIRO
- “Financial Issues in Retirement,” by Professor Deborah Ralston, Monash University
Previous FAF-related papers and speeches, including by FSI Chairman David Murray earlier this year and can be found on the ACFS web site: www.australiancentre.com.au. Previously published FAF papers include:
- “Financing the Australian Business Sector,” Dr Sam Wylie, Melbourne Business School
- “Australian Household Sector Finances,” Professor Michael E. Drew and Dr Adam N. Walk, Griffith University
- “International Linkages: Financial Markets and Technology,” Professor Deborah Ralston and Mr Martin Jenkinson, Australian Centre for Financial Studies
- “Regulating the Australian Financial System,” Mr Alex Erskine, Erskinomics Consulting
- “Funding Australia’s Future: From Where to We Begin?,”Professor Kevin Davis, ACFS
- “The Future Demand and Supply of Finance,” Professor Rodney Maddock, Victoria University and Monash University
- “Improving Australia’s Financial Infrastructure,” Dr Daniel Mulino (previously Pottinger, currently Victorian Parliamentary Secretary)
ACFS also manages the CSIRO-Monash Superannuation Research Cluster – a multi‑year research project exploring the contribution that the superannuation sector makes to Australia’s economy, and the behavioral issues which govern decision making in retirement. Research such as this is essential as the Government strives to implement evidence-based policy.
Executive Director, Australian Centre for Financial Studies
Phone: 0412 121 093
Professor Kevin Davis
Research Director, Australian Centre for Financial Studies
Phone: 0409 970 559