HomeView 2015 Media ReleasesFunding ASIC needs fairness and focus

COBA believes an industry funding model for ASIC should not be implemented until related regulator transparency and accountability recommendations made by the Financial System Inquiry (FSI) have been implemented.

COBA believes an industry funding model for ASIC should not be implemented until related regulator transparency and accountability recommendations made by the Financial System Inquiry (FSI) have been implemented.

“The FSI’s Final Report made several recommendations aimed at ensuring that any industry funding model was supported by an appropriately transparent and accountable governance framework,” COBA CEO Mark Degotardi said.

“Until these broader recommendations are fully implemented, any discussion around the merits of cost recovery is premature.”

Responding to Treasury’s consultation paper on ASIC funding, COBA argues that any long-term funding model must:

  • avoid imposing disproportionate costs on smaller players; and
  • recognise that some business models present greater risks to investors and consumers.

“It is important that the funding model recognises that the customer-owned business model poses lower risks to consumers and therefore requires less attention from the regulator,” Mr Degotardi said.

“Unlike listed banks, customer-owned banking institutions exist to meet the needs of their customers rather than to aggressively maximise returns to shareholders.

“The funding model should also avoid exacerbating the current negative trends of increasing concentration and vertical integration in the financial system.

“The FSI issued a warning about the concentrated state of the banking market and that concentration creates risks to stability and competition.”

Media Release

Submission

For more information please contact:

Daniel McDougall, Senior Manager – Media and Communication

02 8035 8444 or 0407 637 541, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Customer Owned Banking Association is the industry body for credit unions, building societies, mutual banks and friendly societies.  See coba3.nexusone.com.au

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