Final Report Navigation Tool

Guide to how major stakeholder issues have been dealt with in the Final Report of the Financial System Inquiry (November 2014)

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The table below addresses how the major issues raised in submissions have been addressed in the Final Report. It has been informed by the analysis undertaken by the Centre for International Finance and Regulation (CIFR) on the major issues raised by stakeholders in first and second round submissions

The table is not a feedback statement and all stakeholders should consider the Final Report.

Sector Issue Most  relevant chapter/s Page reference
Banking Access to and cost of funding Overview
Resilience
15
41‑59
Competition in the banking sector Overview
Resilience
Innovation
Regulatory system
18‑21
60‑66
190‑192
254‑256
Digital identity and client identification Innovation 151‑160
Financial Claims Scheme Resilience 37, 82‑83
Funding economic growth Overview
Innovation
Appendix 1
Appendix 3
14, 15
177‑ 180, 190‑192
263, 264
283, 284
Funding from overseas Overview
Resilience
Appendix 2
15
41‑59
279
Housing finance Overview
Resilience
22‑23
60‑66
Interest withholding tax Overview
Appendix 2
18
279
International opportunities Overview
Appendix 2
20‑21
279
Lenders mortgage insurance Resilience 66
Product issuer accountability Consumer outcomes 198‑205
Prudential standards including capital requirements Overview
Resilience
21‑24
41‑81, 84‑85
Regulatory architecture Regulatory system 233‑235
Regulatory burden Overview
Regulatory system
29, 30
257‑260
Shadow banking Resilience
Regulatory system
37
234
Tax treatment of deposits and other savings products Overview
Appendix 2
17
278
Technological developments and cyber security Innovation
Appendix 1
151, 154
268
Too‑big‑to‑fail Resilience 67‑75
Vertical integration Overview
Regulatory system
Appendix 1
19
255
271, 272
Small and medium‑sized and rural business Access to market‑based finance Overview
Innovation
Appendix 3
14, 15
177‑180
283‑284
Comprehensive credit reporting Innovation
Appendix 3
190‑192
283
Crowd funding/peer to peer lending Innovation
Appendix 3
177‑180
283
Non‑financial covenants/Unfair terms Appendix 1
Appendix 3
264
283
Options for companies in financial distress Appendix 1 265‑266
Payments – interchange fees and merchant service fees Innovation 168‑176
Regulatory burden Overview
Innovation
Regulatory system
Appendix 3
15, 29, 30
143‑150, 257–260
283, 284
283, 284
Rural business financing Overview 14, 15
Start‑up/venture capital funding Innovation
Appendix 2
Appendix 3
177‑180
279
283‑284
Superannuation and wealth management Allocation of assets/short term focus Overview 14, 15
Competition Overview
Super and RI
Regulatory system
Appendix 1
18, 25
101‑116
257‑260
273‑274
Digital identity and client identification Innovation 151‑160
Disclosure Overview
Consumer outcomes
Appendix 1
27, 28
193‑196, 213‑216
271‑272
Effect on flow of funds in the economy Overview 3, 15
Governance Super and RI 133‑136
Impact investing and social benefit bonds Appendix 1 261
Legacy products Appendix 1 274‑275
Leverage in superannuation Resilience 86‑88
Longevity risk Super and RI 117‑130
Managed funds – international opportunities Overview
Appendix 1
18‑21
275
Managed investments – structural issues Appendix 1 273‑274
Objective of superannuation system Super and RI 95‑100
Product issuer accountability Consumer outcomes 198‑205
Quality of advice Consumer outcomes
Super and RI
Appendix 1
217‑226
119
271, 272
Regulatory burden Overview
Regulatory system
29, 30
257‑260
Regulatory framework Regulatory system 233‑235
Retirement income product range (including barriers to product development) Super and RI 120‑122, 125‑126
Self‑managed superannuation funds Regulatory System 234
Stability of superannuation policy settings Regulatory system
Super and RI
234
95‑100, 137‑142
Superannuation fees and costs Super and RI 101‑108
Taxation of superannuation Super and RI
Appendix 2
137‑142
280
Vertical integration Overview
Regulatory system
Appendix 1
19
255
271, 272
Retail consumers Financial inclusion Consumer outcomes 193
Affordability of insurance Consumer outcomes 231‑232
Ageing population/Age Pension Super and RI 89, 94‑96, 98, 108, 122, 124‑128, 138
Competition in banking Overview
Resilience
Regulatory system
18‑21
60‑66
254‑256
Consumer advocacy Consumer outcomes 193
Crowdfunding Innovation 177‑180
Tax treatment of deposits and other savings products Overview
Appendix 2
17
278
Digital identity and client identification Innovation 151‑160
Effectiveness of consumer protection Consumer outcomes
Appendix 1
193‑232
271‑272
Improving disclosure Consumer outcomes
Innovation
Appendix 1
193‑196, 213‑216,
227‑230
185‑188
271‑272
Financial literacy Consumer outcomes 193
Impact investing and social impact bonds Appendix 1 261
Payments – customer surcharging Innovation 168‑176
Product suitability Consumer outcomes 198‑205
Quality of financial advice Consumer outcomes
Appendix 1
193‑196, 217‑226
271‑272
Retail corporate bond market Appendix 1 263‑264
Strong, independent regulator Overview
Regulatory system
29
236, 246‑253
Technological developments and consumer information Innovation
Appendix 1
185188
269‑270
Payments system Competition in the payments system Overview
Innovation
18‑21
161‑167
Interchange fees and customer surcharging Innovation 168‑176
Cyber security Innovation
Appendix 1
151, 154
268, 269
Regulatory complexity and burden Overview
Innovation
Regulatory system
29, 30
144‑146, 147‑150,
161‑180,
257‑260
Role of Payments Systems Board and related regulation Regulatory system
Innovation
241, 255
161‑176
Technological developments and risk management Innovation 181‑189, 268, 269
Financial markets Competition in clearing and settlement services Overview
Regulatory system
Appendix 1
20
254‑256
275
Competition within the financial markets system Overview
Innovation
Regulatory system
Appendix 1
20177‑180
254‑256
275
Crowdfunding Innovation
Appendix 3
177‑180
283
Cyber security Innovation
Appendix 1
151, 154
268‑269
Retail corporate bond market Appendix 1 263‑264
Digital identity and client identification Innovation 151‑160
Disclosure Consumer outcomes
Innovation
Appendix 1
193‑196, 213‑216
181‑189
271‑272
Financial market infrastructure – systemic importance Overview
Resilience
20
37, 79‑81
International opportunities/growth of Asia Overview
Regulatory system
Appendix 2
20, 21
254‑256
279
Market based financing Overview
Innovation
Appendix 1
Appendix 3
13‑21
177‑180, 263, 264
283, 284
Ownership Appendix 1 275
Product issuer and distributor accountability Consumer outcomes 198‑205
Regulation of debenture issuers Appendix 1 265
Regulatory impediments to innovation Innovation
Consumer outcomes
147‑150
213‑216
Securitisation markets Overview 13‑21
Stockbrokers and conflicted remuneration Consumer outcomes 217‑221
Life insurance Disclosure Consumer outcomes 193‑196, 213‑216
Legacy products Appendix 1 274‑275
Life insurance and commissions Consumer outcomes 217‑221
Lifetime annuities Super and RI 120, 122, 124‑125
Quality of advice Consumer outcomes 217‑226
Regulatory burden Overview
Regulatory system
29, 30
257‑260
Systemic importance Resilience 36
General insurance Aggregator access to general retail insurance Innovation 181‑189
Availability of affordable insurance Consumer outcomes 231‑232
Cost of insurance Consumer outcomes 231‑232
Disclosure Consumer outcomes
Innovation
227‑230
181‑189
Natural disasters Consumer outcomes 227‑232
Online tools and calculators Consumer outcomes
Innovation
227‑230
181‑189
Regulatory burden Overview
Regulatory system
29, 30
257‑260
Lenders mortgage insurance Resilience 66
State and Territory taxes Consumer outcomes 231
Statutory Insurance Consumer outcomes 232
Systemic importance Resilience 36
Under insurance Consumer outcomes 227‑232
Advisers and dealers Competency standards Consumer outcomes 222‑226
Customer‑focused culture Overview
Consumer outcomes
7, 8
193‑197, 217‑221
Digital identity and client identification Innovation 151‑160
General advice labelling Appendix 1 271, 272
Product distributor accountability Consumer outcomes 198‑205
Register of advisers Consumer outcomes 222‑226
Regulatory burden Overview
Regulatory system
29, 30
257‑260
Remuneration/conflicts Consumer outcomes 217‑221
Scaled advice Innovation
Consumer outcomes
Appendix 1
188
225
269‑271
Vertical integration Overview
Regulatory system
Appendix 1
19
255
271
Large corporates Access to funding Overview
Resilience
Appendix 1
14‑16
41‑59, 263‑264
263‑264
Dividend imputation Overview
Appendix 2
17
278
Integration with international financial system Overview
Regulatory system
Appendix 2
20‑21
254‑256
279
Options for companies under financial distress Appendix 1 265‑266
Retail corporate bond market Appendix 1 263‑264
Professional firms International opportunities Overview
Regulatory System
Appendix 1
Appendix 2
20‑21
254‑256
275
279
Regulatory complexity and burden Overview
Innovation
Regulatory system
Appendix 1
29, 30
147‑150
257‑260
265‑266
Property and infrastructure business Access to funding Overview
Appendix 1
Appendix 2
14‑16
263‑264
277‑281
Managed investment scheme structural issues Appendix 1 273‑274
Regulatory burden Overview
Regulatory system
29, 30
257‑260
Other Taxation issues Overview
Appendix 2
17‑18
277‑281
Data access and use Innovation 181‑189
Fiscal/budget sustainability Overview
Resilience
5, 10
33, 41‑59
Insolvency Resilience
Appendix 1
67‑75
265‑266
More regular reviews of the financial system Regulatory system 254‑256
Role of policy makers and regulators Overview
Innovation
Regulatory system
11, 12, 29
147‑150
233‑260
Regulator funding Regulatory system 246‑253