Call for third umpire to balance policy objectives

A 'third umpire’ should be set up to balance the views of government stakeholders in the areas of financial systems policy but remain independent of government to ensure optimal outcomes, according to the Actuaries Institute. 

In its submission to the Financial Systems Inquiry, the Actuaries Institute has called for the establishment of a Financial System Policy Commission (FSPC) that would be involved in policy discussions between the Australian Prudential Regulatory Authority, The Australian Securities and Investments Commission, The Reserve Bank of Australia, Treasury and the Australian Tax Office. 

The Actuaries Institute said the FPSC would not take a lead role but balance the views of these bodies and act as an umpire when intersecting policy decisions of the various bodies needed to be clarified or resolved. 

“It is acknowledged that the Commonwealth Treasury has the primary role in formulating financial sector policy and is the key economic adviser to the Treasurer. We are not looking for more regulation, just more efficient regulation with a long-term focus.”  

“The FSPC would not assume those roles but could function in a similar manner to the Australian Government Productivity Commission which is the Government’s independent research and advisory body on all aspects of microeconomic reform.”