Interim Report Navigation Tool

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

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The table below addresses how the majority of issues raised in submissions have been addressed in the Interim 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.1

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

Sector Issue Most relevant chapter and page
Banking Access to and cost of funding Competition 2‑12 to 2‑16
Funding 2‑76 to 2‑81
Committed Liquidity facility Funding 2‑77 to 2‑78
Stability 3‑39
Comparing and switching between products Competition 2‑18 to 2‑20
Competition in the banking sector Competition 2‑6 to 2‑23
Digital identity and client identification Technology 4‑64 to 4‑71
Financial Claims Scheme Stability 3‑16 to 3‑18
Four pillars Competition 2‑20 to 2‑21
Funding economic growth Funding 2‑78 to 2‑80
Funding from overseas Funding 2‑45 to 2‑48
Housing finance Funding 2‑51 to 2‑57
Interest withholding tax International integration 4‑83
Appendix A2‑3
International opportunities International integration chapter
Lenders mortgage insurance Competition 2‑21 to 2‑22
Prudential standards including capital requirements Competition 2‑8 to 2‑12
Funding 2‑77 to 2‑78
Stability 3‑14 to 3‑16, 3‑33 to 3‑43
Regulatory burden Regulatory architecture 3‑91 to 3‑97
Shadow banking Stability 3‑6 to 3‑7 and 3‑23 to 3‑24
Small‑ and medium‑sized business lending Competition 2‑16 to 2‑18
Funding 2‑59 to 2‑68
Consumer outcomes 3‑82 to 3‑83
Tax treatment of deposits and other savings products Funding 2‑48 to 2‑50
Technological developments and cyber security Technology 4‑37 to 4‑38 and 4‑58 to4‑63
Too‑big‑to‑fail Competition 2‑12 to 2‑16
Stability 3‑8 to 3‑21
Vertical integration Competition 2‑21
Superannuation 2‑105, 2‑115
Small‑ and medium‑sized and rural business Access to market‑based finance Funding 2‑64 to 2‑66 and 2‑92 to 2‑94
Agribusiness managed investment scheme failures Consumer outcomes 3‑84 to 3‑85
Crowd funding/peer to peer lending Funding 2‑94
Technology 4‑48
Impact of prudential standards on lending to SMEs Funding 2‑63 to 2‑64
Non‑financial covenants Consumer outcomes 3‑82 to 3‑83
Rural business financing Funding 2‑66 to 2‑67
SME cost of and access to funding Competition 2‑16 to 2‑18
Funding 2‑59 to 2‑68
Start‑up/venture capital funding Funding 2‑65 to 2‑66
Superannuation and wealth management Allocation of assets/short term focus Funding 2‑82 to 2‑83
Superannuation 2‑107 to 2‑111
Competition Competition 2‑37 to 2‑38
Superannuation 2‑105 to 2‑106 and 2‑115
Disclosure and advice Consumer outcomes 3‑54 to 3‑74
Regulatory architecture 3‑91
Effect on flow of funds in the economy Funding 2‑83 to 2‑85
Legacy products Consumer outcomes 3‑86 to 3‑87
Leverage in superannuation Superannuation 2‑115 to 2‑117
Managed funds – international opportunities International integration 4‑96 to 4‑98
Managed investment scheme failures Consumer outcomes 3‑83 to 3‑86
Preservation Not directly covered
Regulatory burden Regulatory architecture 3‑91 to 3‑97
Regulatory framework Regulatory architecture 3‑100 to 3‑104
Retirement income system and longevity risk Retirement income 4‑8 to 4‑25
Retirement product range (including barriers to product development) Retirement income 4‑25 to 4‑32
Self‑managed superannuation funds Superannuation 2‑123 to 2‑126
Stability of superannuation policy settings Superannuation 2‑118 to 2‑122
Superannuation fees and costs Superannuation 2‑99 to 2‑103
Retail consumers Address financial exclusion Consumer outcomes 3‑80 to 3‑81
Affordability of insurance Consumer outcomes 3‑74 to 3‑79
Credit practices Consumer outcomes 3‑80 to 3‑82
Differentiated tax treatment of savings products Funding 2‑48 to 2‑51
Digital identity Technology 4‑64 to 4‑71
Effectiveness of consumer protection Consumer outcomes 3‑50 to 3‑53
Effectiveness of disclosure Consumer outcomes 3‑54 to 3‑62
Financial compensation scheme Consumer outcomes 3‑83 to 3‑86
Financial literacy Consumer outcomes 3‑60 to 3‑62
Healthcare costs Not directly addressed
Housing affordability Not directly addressed
Housing debt Funding 2‑51 to 2‑57
Impact investing and social impact bonds Funding 2‑73 to 2‑74
Microfinance Consumer outcomes 3‑81 to 3‑82
Needs of ageing population/Age pension Retirement income 4‑3 to 4‑7 and 4‑14 to 4‑15
Quality of financial advice Consumer outcomes 3‑63 to 3‑73
Social inequity Not directly addressed
Technological developments and consumer information Consumer outcomes 3‑71 to 3‑72
Technology 4‑35 to 4‑40 and 4‑51 to 4‑57
Payments system Competition in the payments system Competition 2‑23 to 2‑32
Impact of credit card surcharges/merchant service fees/interchange fee caps Competition 2‑23 to 2‑32
Regulatory complexity and burden Regulatory architecture 3‑103 to 3‑106
Role of Payments Systems Board and related regulation Regulatory architecture 3‑91 and 3‑103 to 3‑106
Technological developments and risk management Technology 4‑37 to 4‑38 and 4‑45 to4‑46
Transparency Competition 2‑32
Financial markets Automated trading/high frequency trading/dark pools Technology 4‑49
Competition in clearing and settlement services Competition 2‑33 to 2‑37
Competition within the financial markets system Competition 2‑33 to 2‑37
Corporate bond market Funding 2‑86 to 2‑91
Derivatives Competition 2‑33
Stability 3‑12, 3‑13 and 3‑23
Financial market infrastructure Stability 3‑12 to 3‑13
Competition 2‑33 to 2‑37
International opportunities/growth of Asia International integration 4‑77 to 4‑80
Market based financing Funding 2‑64 to 65 and 2‑86 to 2‑93
Private equity funding Funding 2‑65 to 2‑66
Prospectus regime/listing standards Funding 2‑64 to 2‑65 and 2‑90 to 2‑94
Regulatory impediments to innovation Technology 4‑48 to 4‑52
Securitisation markets Competition 2‑12 to 2‑16
Short selling Not directly addressed
Systemic importance Overview 1‑19
Stability 3‑12 to 3‑13
Competition 2‑36 to 2‑37
Insurance Aggregator access to general retail insurance Competition 2‑40 to 2‑41
Availability of affordable insurance Consumer outcomes 3‑74 to 3‑80
Health insurance Not directly addressed
Legacy products Consumer outcomes 3‑86 to 3‑87
Losses in group life insurance Not directly addressed
Regulatory burden Regulatory architecture 3‑91 to 3‑97
Risk pooling and individual risk pricing Consumer outcomes 3‑79 to 3‑80
Role of annuities Retirement income 4‑6 to 4‑9
Role of lenders mortgage insurance Competition 2‑21 to 2‑22
State and Territory taxes Not directly addressed
Systemic importance Stability 3‑5 to 3‑7
Technological developments and risk management Technology 4‑53
Consumer outcomes 3‑79 to 3‑80
Under insurance Consumer outcomes 3‑74 to 3‑80
Advisers and dealers Bad apples and lessons from financial failures Consumer outcomes 3‑68 to 3‑69 and 3‑83 to 3‑86
Regulatory architecture 3‑124 to 3‑125
Competency standards Consumer outcomes 3‑67 to 3‑69
Providing services to SMSFs Superannuation 2‑125 to 2‑126
Consumer outcomes 3‑67 to 3‑69
Regulatory burden Regulatory architecture 3‑91 to 3‑97
Remuneration/conflicts Consumer outcomes 3‑63 to 3‑65
Scaled and general advice Consumer outcomes 3‑70 to 3‑71 and 3‑73 to 3‑74
Technological developments and risk Consumer outcomes 3‑71 to 3‑72
Vertical integration Competition 2‑21 and 2‑37 to 2‑38
Superannuation 2‑105 to 2‑106 and2‑115
Large corporates Access to big data Technology 4‑38 to 4‑39
Access to funding Funding 2‑57 to 2‑59 and 2‑86 to 2‑91
Dividend imputation Funding 2‑57 to 2‑59
Executive Remuneration Stability 3‑46 to 3‑47
Integration with international financial system Funding 2‑45 to 2‑46
International integration 4‑73 to 4‑102
Managing risk Funding 2‑57 to 2‑58
Options for companies under financial distress Funding 2‑69 to 2‑71
Professional firms International opportunities International integration 4‑87
Regulatory complexity and burden Regulatory architecture 3‑91 to 3‑97
Property and infrastructure business Access to funding Funding 2‑71 to 2‑72
Managed investment scheme failures and structural issues Consumer outcomes 3‑83 to 3‑86
Market based funding and regulation Funding 2‑65
Prudential standards and impact on asset allocation Funding 2‑82 to 2‑85
Retirement income 4‑7
Regulatory burden Regulatory architecture 3‑91 to 3‑97
Other Adequacy of regulatory data Regulatory architecture 3‑97
Approach for addressing taxation issues Appendix A2‑1 to A2‑3
Company proxy forms Not directly addressed
Corporate governance standards Stability 3‑43 to 3‑48
Custodial services Regulatory architecture 3‑107 to 3‑108
Fiscal/budget sustainability Overview 1‑22 to 1‑24
Insolvency Funding 2‑69 to 2‑71
More regular reviews of the financial system Not directly addressed
Off‑market share buy backs Not directly addressed
Overall regulatory burden Regulatory architecture 3‑91 to 3‑97
Promoting innovation Technology 4‑47 to 4‑50
Reverse mortgages Retirement income 4‑32 to 4‑33
Role of policy makers and regulators Regulatory architecture 3‑89 to 3‑129

1 CIFR 2014, First round submission to the Financial System Inquiry, page 78‑81.