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Herbert Smith Freehills Calls For New Phase Of Financial Services Regulation.

29 August, 2014

 

Herbert Smith Freehills has called for a new phase of regulation in the financial services sector. In a submission to the Financial System Inquiry, the firm argued that new ‘facilitative regulation’ is required to improve efficiency and enhance consumer understanding and confidence in the system, and should focus on product rationalisation, while also addressing electronic disclosure as a means to improve efficiency for consumers and the industry alike.

 

“Consumer confidence is critical to an efficiently functioning market and in this post-GFC environment, it is important that regulation seeks to minimise system complexities and improve the consumer experience,” said Michael Vrisakis, partner at Herbert Smith Freehills, “The financial services industry has been subject to successive waves of regulation in recent decades, which have focused on increasing conduct and prudential requirements. There is now an opportunity for new regulation to enhance system efficiency in a way that not only benefits consumers but eases the regulatory burden on market participants.” 


To tackle this, Herbert Smith Freehills suggested that a three-tiered rationalisation model be adopted, which combines existing merger mechanisms from superannuation and insurance regulation. 


To view the Herbert Smith Freehills submission to the Financial System Inquiry, please click here.

 

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