Standing Committee on Economics, Finance and Public
Media release, 29 September 1997
MAKING THE REGULATORS ACCOUNTABLE
The House of Representatives Standing on Financial Institutions and
Public Administration today tabled its report on the review of the 1995-96
annual reports of the Reserve Bank of Australia, Australian Securities
Commission and the Insurance and Superannuation Commission.
David Hawker, Chairman of the Committee, said that accountability of
the financial regulators and transparency in their decision making is
vital for the efficient operation of the financial services industry.
"The importance of the financial services industry to the economy and
the relationship between service providers and their customers requires
an open regulatory regime."
"The examination of the policies and procedures of the regulators at
a public forum is a significant step in improving accountability to the
Parliament and the community," Mr Hawker said.
The Committee's report canvasses a range of issues related to the operations
of each of the regulators including:
- Monetary policy
- The difficulties confronting small business related to the cost of
finance and access to capital
- Cheque clearance procedures
- The role of investment advisers
- Reviews of superannuation funds
"The Committee has also drawn attention to the critical importance of
the relationship between the RBA and the proposed new prudential regulator
and has recommended that the new regulator be required to appear before
the Committee to complement the RBA's appearances."
Mr Hawker added, "The Committee identified a number of issues which
will be canvassed at the November hearing with the RBA including interest
rate margins which have not declined in most areas of lending."
Ends 29 September 1997
Further information: David Hawker MP (Chairman) Parliament House (02)
Christopher Paterson (Inquiry Secretary) (02) 6277 4587
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