Australia’s financial regulation is quite comprehensive and extensive. The country’s regulators have a very specific and detailed approach to the regulation of financial matters. The regulatory environment is particularly complex and requires knowledge of many legal issues. Here are some of the major aspects of Australian financial regulation. These guidelines are intended to protect the public as well as businesses from possible liabilities. If you’re thinking about investing in Australia, you should consider reading these guidelines first.
The Reserve Bank of Australia is responsible for monetary policy and most payment systems in Australia. The Australian Competition and Consumer Commission regulates anti-competitive conduct in the financial sector and oversees most financial service providers. The Reserve Bank of Australia also collects data on a daily basis to monitor and evaluate the performance of the industry. In order to maintain the highest standards of protection for customers, financial institutions must follow these regulations and ensure their compliance with them.
Financial services in Australia are regulated by federal legislation. These regulations include regulator-specific rules, regulatory guidance, class orders, and consumer protection laws. Under these laws, a number of obligations apply to entities that are not registrable corporations. However, APRA has broad powers to take enforcement action if necessary. It can impose additional conditions on institutions’ licences, disqualify individuals, impose restraining orders, and even criminal prosecution. Following the Royal Commission, the Australian financial regulatory environment is becoming more proactive in enforcing these requirements.
Under the Corporations Act, a statutory body corporate, APRA regulates the financial sector. It is responsible for regulating the banking industry and administering the insurance claims scheme. APRA is charged with balancing the objectives of safety, efficiency, competition, and contestability and promoting the stability of the financial system. APRA also represents Australia at the National Credit Council and the Basel Committee on Banking Supervision.
The Corporations Act defines financial products broadly. It covers wealth management products, investment activities, and market-making. The regulations also cover crowdfunding and other types of financial services. Moreover, under the Corporations Act, a business must obtain a license before it can operate. The APRA does not consider an individual or a company that carries out an activity. As a result, an APRA license is required for any activity that involves the sale of any product or service in Australia.
Moreover, Australian companies must be members of the Australian Financial Complaints Authority. The ASIC is a regulator for financial services. It regulates all aspects of the financial services industry, from investments to mortgages. The e-Payments Code includes the protections for consumers. The e-Payments Code complements the ASIC Act and the National Consumer Credit Protection Act. ASIC’s work will benefit the consumers.Alex Wade