Submission: Financial System Inquiry—Draft Terms of Reference

Consumer Action welcomes the opportunity to comment on the draft terms of reference for the Financial System Inquiry.

In summary, we recommend that:

  • the overall objective for the Inquiry could be enhanced by clarifying that it will examine whether the financial system meets consumers’ needs and contributes to Australia’s wellbeing;
  • the terms of reference should ask the Inquiry to consider how and when consumer protection and effective regulation encourages competition and efficient market outcomes;
  • the Inquiry should consider ways innovation can be encouraged that contributes to fulfilling a social or economy-wide need;
  • in assessing the consequences of financial regulation, the Inquiry should consider whether that regulation is meeting its stated aim efficiently, and not only the costs and negative impacts of the regulation;
  • in recommending policy options, the Inquiry should consider the adequacy of consumer protections in promoting consumer confidence, as well as the behaviour of consumers in facilitating competition; and
  • the Government consider including an expert in consumer policy on the Inquiry panel.

A full copy of our submission is available by clicking: Financial System Inquiry—Draft Terms of Reference.

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