The inquiry had until now been dubbed the 'Son of Wallis' inquiry, in reference to Stan Wallis' review of the financial system 16 years ago.
In a joint announcement last night, Treasurer Joe Hockey and Prime Minister Tony Abbott said the current inquiry would make recommendations to foster an “efficient, competitive and flexible financial system”, resulting in reduced costs and lower fees.
“As part of our broader deregulation agenda, the government intends to reduce the regulatory burden on the financial services sector wherever the benefits to competition, efficiency, market stability or consumer protection are questionable,” said the statement.
Mr Murray will head a committee of “four eminent Australians drawn from the finance, business and academic sectors”, according to the government.
Treasury has also released its draft terms of reference for the inquiry, which aim to be “consistent with financial stability, prudence, integrity and fairness”.
The draft terms of reference state the inquiry will report on the developments in the Australian financial system since the 1997 Wallis inquiry, including how Australia funds its growth; domestic competition and international competitiveness; and the cost, safety and availability of financial services and products for end users.
The inquiry will also look to “refresh” the philosophy and principles underpinning the financial system, and identify emerging opportunities and challenges.
According to the draft terms of reference, the inquiry will look to promote policies that highlight the efficient allocation of capital and cost efficient access and services for users; support individuals and businesses to be reasonably able to manage their finances by understanding risks and rewards in the financial sector; and foster dynamic and innovative financial service providers.
The inquiry will also examine the extent to which both regulation and taxation “impinge on the efficiency and effective allocation of capital within the financial system”.
The draft terms of reference for the inquiry will be open for submissions until 5 December 2013.
