A speech by ASIC Chairman, Greg Medcraft, delivered at the American Chamber of Commerce in Australia Business Leaders’ Lunch, Hilton Sydney, 2 November 2012.
Ladies and gentlemen, today I will speak to you about the key challenges facing ASIC over the next decade.
I can then respond to any questions you might have.
There are three key challenges facing ASIC over the next decade to build resilience in the Australian financial system. These are:
- growing regulatory perimeter: The growing regulatory perimeter, particularly with the exponential growth in superannuation (1.4 trillion to 3 trillion to 5 trillion) – this means more products, more investors and greater investment funds and therefore increased risk in the financial system
- complexity: The increasing complexity of the financial system – products, information channels and financial markets are all increasing in complexity which also increases risk in the system
- and most importantly, proactive regulation: Leveraging ASIC’s resources to be a proactive regulator. Benjamin Franklin ‘an ounce of prevention is worth a pound of cure’. Stakeholder engagement, surveillance, education and guidance are all part of ASIC's proactive approach in order to maintain confidence in Australia’s financial system.