The country's financial services industry has a significant body of work to do in 2016 and beyond when it comes to regulatory policy development, according to Deloitte.
Deloitte's latest research on Asia-Pacific regulatory themes, found financial institutions in the region would continue to face a significant agenda of regulatory policy development and implementation challenges impacting business strategy.
Deloitte predicts regulatory trends in 2016 will, as in the past few years, be largely driven by international development, with the main challenges being resilience, culture and conduct, and technology.
The firm's lead partner of Deloitte Asia-Pacific centre for regulatory strategy, Kevin Nixon, said "implementing individual requirements, as well as adapting business strategy to regulatory initiatives, is best done with an understanding of policy intent and future reforms. Understanding this in a holistic context is vital".
"In Australia, financial institutions have a comprehensive local agenda to manage following the Government's recent adoption of nearly all recommendations of the Financial System Inquiry," he said. "While some of these are aligned with, and dependent on, global policy outcomes (such as mortgage risk weights), there is a significant local body of work through 2016 and beyond. "
Deloitte's Asia-Pacific enterprise risk services leader, Janson Yap, said "financial institutions in Asia Pacific are under increasing pressure to meet international regulatory timelines while managing varied local regulatory requirements".