Lightly regulated markets to receive more scrutiny
Markets that were largely left alone by regulators prior to the global financial crisis will be more actively managed as a result of a series of post crisis reviews, and the current wave of changes may not be the end of the reform process.
In a speech to the 35th IOSCO Annual Conference of the International Organization of Securities Commissions, Australian Securities and Investments Commission (ASIC) chairman and Joint Forum Commission chairman Tony D'Aloisio said regulators must also maintain a sense of urgency to have changes made in each jurisdiction, otherwise opportunities for key reform might be missed.
Further to the current round of proposed changes, regulators needed to re-examine the conceptual framework that had previously underpinned the approach to the less regulated sector.
“We need to re-examine those assumptions and assess further changes which may be needed,” he said.
The changes will result in the previously less regulated markets being regulated similarly to other markets, such as exchange traded markets, and may also result in the industry being more heavily regulated than it may want as a result of the crisis, D’Aloisio said.
Proposed securities and investments changes had been well targeted, and responded to the problems which were thrown up by the crisis in a way that balanced market efficiency with improved investor protection, D’Aloisio said.
“Although a lot of work has been done, there is a way to go before we can provide clarity and certainty to the markets, and we need to maintain a sense of urgency,” he said.
Recommended for you
A quarter of advisers who commenced on the FAR within the last two years have already switched licensees or practices, adding validity to practice owners’ professional year (PY) concerns.
Integrated wealth and financial services group Rethink has launched a financial planning arm called Rethink Wealth to expand beyond property investing and into holistic wealth management.
While adviser numbers continue to slowly creep back up, the latest Wealth Data analysis reveals they would actually be in the green for the calendar year if it weren’t for so many losses in the limited advice space.
Iress has appointed a chief AI officer to spearhead the fintech’s strategic focus on AI, with chief executive Marcus Price describing how the technology opens the doors to a “new frontier for wealth advice”.
