In its second submission to the Financial System Inquiry, the firm said while it does not want a new regulator with its own power to impose additional requirements on financial participants, the ‘macroprudential’ regulator could work with and oversee existing regulators to “ensure consistency of approach”.
The submission also argued financial system regulators should be required to consider the effects of regulation and policy on innovation, efficiency and competition in the sector.
Minter Ellison partner David Eterovic said this could be achieved by requiring regulators to submit new or changed requirements to an independent panel made up of representatives from government, consumer and industry.
Mr Eterovic said the panel would “assess how proposed changes promote or at least minimise impediments to innovation, efficiency and competition”.
The law firm also emphasised the need for “greater self-regulation in the financial sector and for approaches that engender efficiency and regulatory certainty”.
“Australia’s current regulatory regime is too complex and that impedes efficiency and reduces confidence in the system,” said Mr Batten.
“We therefore welcome the consultation on reform initiatives being undertaken by the FSI and see it as an example of the approach that needs to be followed to achieve an efficient financial system that meets the needs of both participants and consumers.”
