Financial digital world shrinking

As the financial digital world becomes smaller, regulators, both locally and globally, are working more closely together to frame financial consumer protection regulations, according to the Finance Brokers Association of Australia (FBAA).

Executive director Peter White said that regulators and ombudsmen in Australia are collaborating with their counterparts around the world to better understand and potentially streamline the financial industry here and abroad.

“As ASIC chairman Greg Medcraft commented, and I agree, disclosure is no longer the solution in financial markets, it has limitations,” he said.

“Our regulators and governments share information and issues around the world and in part that’s why the FBAA conducted its global research paper last year and why we continue to look at what’s going on in other markets globally.

“We have to stay in front of the game if we want to help shape our industry’s future and by understanding the conversations our regulators and ombudsmen are having, and those of other countries, we can look to frame our position from a more informed base and guide our future in these discussions.

“What’s happening overseas is playing out here. We were forewarned about that last year by global financial industry expert Steve Weston when he spoke during our national roadshow.”

Mr White’s comments follow the OECD ASIC Asia-Pacific Financial Consumer Protection seminar in Melbourne at which the FBAA was the only broker-based representative body in attendance.

“ASIC acknowledges that collecting unnecessary data slows business down and they shouldn’t be collecting data they don’t need or can’t use.

“So why does ASIC want more reporting within the broker and aggregator space? They need to specify to what level and in which areas and we emphasised that in our submission to the ASIC Rem review.

“As I have been saying for many years, disclosure and comprehension are not synonymous.”