Federal Treasurer plans to introduce a financial services regulatory grid

In a bid to promote better coordination, transparency and collaboration, the Federal Treasurer intends to establish a financial services regulatory grid.  

With the aim of promoting more collaboration and transparency, the Federal Treasurer Jim Chalmers has announced the intention to introduce a financial services regulatory grid.  

In a joint media statement with the Assistant Treasurer and the Minister for Financial Services Stephen Jones, the Treasurer explained the rationale behind this reform.  

“We want to make it simpler and easier to do business in Australia and that’s what this will help achieve in the financial services sector,” the Treasurer said.  

The grid is intended to boost coordination between the government, financial services and the private sector. It’s also expected to bring about more efficiency in implementing regulation and reducing compliance burden and costs.  

Another important aim is to promote visibility across various sectors. The grid is expected to provide visibility to financial services providers about regulation that might impact them and support them in implementing any proposed reforms.  

The banking sector has welcomed this initiative of the federal government.  

“With almost 1200 pages of new laws and regulations placed on the banking sector in the past four years, any initiatives that will allow banks to better plan and coordinate future regulation is welcome,” said Anna Bligh, CEO of the Australian Banking Association.  

Administered by the Treasury, the grid will include initiatives of various regulatory and government bodies such as Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulatory Agency (APRA), the Australian Competition and Consumer Commission (ACCC), the Reserve Bank of Australia (RBA), and the Australian Taxation Office (ATO). 

“We’ve seen a similar initiative in the UK deliver productivity gains and more innovation, and now the same will be able to be achieved here in Australia,” said Ms Bligh.  

“Being able to better navigate regulatory reform will allow banks to reduce compliance costs and invest more in areas such as innovation and new technology.”