The dawn of the Finance Panel?

  • One of the banking royal commission’s recommendations was the creation of a body to oversee ASIC and APRA.
  • This article suggests the new body could also have the authority to set future standards for conduct for those involved in the banking and financial markets.
  • The new regulatory body could be similar to the Takeovers Panel and with the responsibility for making determinations on matters referred by ASIC or APRA or by the service providers.

Businessman looking over documents with magnifying glass

This article focuses primarily on the superannuation industry. However a Finance Panel is just as vital a solution for all other financial markets participants. A forum for fast, effective and commercially oriented determinations for all financial market participants would set standards for future conduct, and take away many concerns for service providers regarding whether or not decisions made or actions taken would be in breach of the complex legislation regulating the industry.

In the superannuation sector, for instance, questions constantly arise regarding the fiduciary duty of trustees within a retail group, whether or not fees charged are in members’ best interests, trustee money management, and even governance questions, such as the role of trustees when shareholders have the power to appoint directors. A relatively quick determination of issues by finance, legal and commercial experts in the Finance Panel would increase the assurance for regulators, service providers and consumers that best market practices were being exercised to ensure the regulatory compliance, dynamic growth and prudential strength of Australia’s financial sector, with minimal breaches of conduct requiring costly legal action.        

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