Any regulatory exchange to be applied to the Australian financial services landscape as a result of the global financial crisis (GFC) is likely to be evolutionary rather than revolutionary, according to ASIC chair Tony D’Aloisio.
The regulatory agenda is currently being driven by international bodies, however the sound conceptual framework already in place in Australia means the effect of any proposed changes will not result in a significant shock to the system, the ASIC chair told delegates at the Finsia Financial Services Conference in Sydney yesterday.
“It has been generally accepted that Australia’s regulatory systems, especially in the securities and investments area, have fared better during the GFC,” D’Aloisio said.
“What we actually mean is during that crisis as we know we were more resilient. But it also means that as we examine the reform agenda, in the securities and investments area which is my main focus, many of the changes are in line with what we already have in our system,” he said.
“Or to put it another way our more resilient system should enable us to cope with the reform agenda that’s unfolding in a way that sees our regulatory system continue to evolve without the need for a regulatory revolution or wholesale reform.”
But while massive change to the system may not be necessary, D’Aloisio said it did not mean there would be no impact on the Australian market as a result of the international regulatory reforms.
“Of course there will be an impact. For example the changes that have been made to short selling have clearly had an impact on market participants and the changes that have been made around the licensing of credit ratings agencies will have an impact,” he said.
