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Articles on Financial regulations

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The superheated Sydney housing market has regulators, and the Reserve Bank, worried. Joel Carrett/AAP

Rates and housing risk: beware outsourcing policy to regulators

With rates on the way down the problem of runaway property investing has been left to the regulator APRA. But regulators should not be used as agents of short-term government policy.
Research has found when super funds share the same directors, fund performance can suffer. Image sourced from Shutterstock.com

Super connected directors not helping super fund performance

Super funds are being asked to improve board governance, and their starting point should be to consider stamping out multiple directorships.
NAB chief Andrew Thorburn has been forced to defend the bank’s reputation after the actions of rogue financial planners were revealed. Dean Lewins/AAP

Naming and shaming helps keep banks honest

There are simple solutions to prevent more financial scandals in Australia - the question is, will the government take them up?
Forex traders who went to the dark side could soon be forced to face the consequences. Justin Lane/EPA/AAP

Explainer: how bankers fixed forex trades and why it’s criminal

“Oh what a tangled web we weave. When first we practice to deceive”. Sir Walter Scott’s comment could have been made about the LIBOR and foreign exchange (forex) scandals engulfing the world’s largest…
Financial planners may be considered professionals, but there’s no national exam to put them through their paces. Shutterstock

Why we still don’t expect financial planners to sit an exam

While financial planning is on the pathway to professionalism, its education standards continue to be the subject of much discussion – and for good reason. The current standards set by ASIC mandate a comparatively…
The collapse of Lehman Brothers was a pivotal moment in the most recent financial crisis. The next crash may feature another bank failure. Reuters

What will the next financial crisis look like – and are we ready?

The subprime crisis and the subsequent failure of Lehman Brothers came as such a shock – and the repercussions were so severe that when the time came to mount a response, policy makers were as surprised…
Shifting bank risk to taxpayers is deeply unpopular, and there is an alternative. Lisa Norwood/Flickr

Explainer: too big to fail and the push for ‘bail ins’

In the last decade or so, the global financial landscape has endured two major shocks - the first with the 2007 collapse of the sub-prime mortgage market in the United States, and the second emanating…
Too big to fail, or too big to jail? Mike Chaput/Flickr

A message for G20 leaders considering banks too big to fail

The global financial crisis had many causes. But it was generally acknowledged at the time and since, that failures of ethics, integrity and trust were an important part of the problem. US Republican Senator…
The performance of ASIC in regulating financial fraud remains under question, despite Chairman Greg Medcraft’s recanted statement that Australia is a “paradise” for white-collar criminals. Britta Campion/AAP

Do the crime, do the time? Not if you’re a banker in Australia

Recently, the head of the Australian Securities and Investments Commission, Greg Medcraft, called Australia a “paradise” for white-collar criminals. Soon after he recanted, claiming he didn’t want the…
When banks run out of capital, the result can be devastating. Katia Christodoulou/EPA/AAP

Should bank capital levels distress Australian regulators?

Following its stepped up year-long review of European banks, the European Central Bank this weekend failed 25 of the 130 banks it tested on the strength of their capital buffers to protect against a downturn…
Why is the City keeping its suffering under wraps? Robin Hawkes

Banks pay a heavy price for the crisis, but fail to count the cost

The major international banks are being lumbered with more and higher fines as the fallout from the financial crisis continues. Our research as part of the Conduct Costs Project at the CCP Research Foundation…

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