Financial Service Inquiry

Underlying Reports/ Wallis Report. March 1997
Majority of the regulatory framework for the Australian financial system has been established over the 16 years since the Australian Financial System Inquiry   reported in 1981. The financial system has been transformed over this period and continues to undergo sweeping change.
Against this background, the Government decided in 1996 to establish a new Inquiry to review these developments, to consider the factors likely to drive further change, and to make recommendations for possible further improvements to the regulatory arrangements.
The Inquiry has confined its attention to the main fields of financial regulation, including those which aim to improve market conduct, disclosure, safety, stability, competition and competitiveness.
The Inquiry has not made specific recommendations on the conduct of monetary policy, retirement incomes policies, taxation policies, or the regulation of the general operation of companies through corporations law
The Report’s summarises the Inquiry’s vision for the future, the Inquiry’s regulatory philosophy and a blueprint for proposed regulatory reform. This blueprint is followed by a full list of the Inquiry’s recommendations.
Structured in 3 parts;
 Part One:   Forces for Change canvasses the major factors driving change in the financial system, including changing customer needs, new skills and technologies, and regulatory change. Part One also describes consequent changes in the conduct and structure of financial markets and businesses.
 Part Two:   Key Issues in Regulatory Reform sets out the philosophy of financial regulation adopted by the Committee and examines the costs of financial activity in Australia. Part Two describes a broad range of reforms aimed at improving financial system efficiency. It presents the Inquiry’s recommendations for financial regulation, including arrangements for market integrity, consumer protection, safety, stability and competition.
 Part... [continues]

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