ASIC eyes emerging risks
The Australian Securities and Investments Commission (ASIC) has formed a committee specifically aimed at identifying risks to the Australian financial services system before they occur.
ASIC chairman Greg Medcraft (pictured) has told a Sydney conference the Emerging Risk Committee was formed at his first commission meeting as chairman, and is aimed at scrutinising thematic and systemic risk more closely.
He said a 2007 International Monetary Fund (IMF) report had pointed to the fact that “regulators often cannot keep up with the pace of financial innovation that may trigger a crisis”.
“One aim of the Emerging Risk Committee will be to address innovations,” Medcraft said.
The ASIC chairman said various ASIC departments would assess the flow of complaints and intelligence, and the leaders of its stakeholder teams would focus as much as possible on emerging thematic and systemic risks.
However, Medcraft warned that ASIC – like other securities regulators – could not guarantee the elimination of systemic risk.
“The nature of innovation means that it is difficult for regulators to anticipate or even keep up with developments, and systemic risks can emerge very quickly,” he said.
AUTHOR
Mike Taylor
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