The Council of Financial Regulators
The Council of Financial Regulators is the co-ordinating body for Australia's main financial regulatory agencies.
Its membership is comprised of the -
i) Reserve Bank of Australia, which chairs the Council;
ii) Australian Prudential Regulation Authority (APRA);
iii) Australian Securities and Investments Commission (ASIC); and
iv) Australian Treasury.
Role and Responsibilities
As specified in the Council's Charter, the Council's role is to contribute to the efficiency and effectiveness of financial regulation by providing a high-level forum for co-operation and collaboration among its members. It operates as an informal body in which members are able to share information and views, discuss regulatory reforms or issues where responsibilities overlap and, if the need arises, co-ordinate responses to potential threats to financial stability. The Council also has a role in advising the Government on the adequacy of Australia's financial system architecture in light of ongoing developments. These arrangements provide a flexible, low-cost approach to co-ordination among the main financial regulatory agencies. The Council is non-statutory and has no regulatory functions separate from those of its members.
Composition of the Council of Financial Regulators
Membership of the Council comprises two representatives – the chief executive and a senior representative – from each of the four member agencies. The Chairman is the Governor of the Reserve Bank, and the Reserve Bank provides the Council Secretariat.
The current members of the Council of Financial Regulators are:
Glenn Stevens
Chairman
Governor
Reserve Bank of Australia
Biographical Summary
Malcolm Edey
Assistant Governor (Financial System)
Reserve Bank of Australia
Biographical Summary
John Laker AO
Chairman
Australian Prudential Regulation Authority
Charles Littrell
Executive General Manager
Policy, Research and Statistics
Australian Prudential Regulation Authority
Greg Medcraft
Chairman
Australian Securities and Investments Commission
John Price
Senior Executive – Strategy and Policy
Australian Securities and Investments Commission
Martin Parkinson PSM
Secretary to the Treasury
James Murphy
Executive Director
Markets Group
Australian Treasury
Co-ordination between Council Members
Australia's financial regulatory structure includes mechanisms to ensure effective co-ordination and co-operation between the four Council member agencies. The liaison framework, which is overseen by the Council itself, is a multi-tiered one. At the highest level, there is overlapping Board representation: one APRA member has representation on the Payments System Board of the Reserve Bank; and the Secretary to the Treasury has a seat on the Reserve Bank Board.
In September 2008 the Council members released a joint Memorandum of Understanding (MOU) dealing specifically with financial crisis management arrangements. The MOU reflects the strong commitment of Australia's regulatory agencies to the open exchange of information and to a co-ordinated response to potential threats to the stability of Australia's financial system. The MOU covers the objectives of financial distress management and the principles that guide decisions and actions during times of financial distress, and also sets out the responsibilities of the individual Council members during such times.
The MOU builds on the co-operative arrangements that have been in place for a number of years and which have been set out in bilateral Memoranda of Understanding signed between various members of the Council. The bilateral Memoranda cover operational matters such as information sharing, and prompt notification of any regulatory decisions likely to impact on the other agency's area of responsibility. They also establish regular bilateral co-ordination arrangements that aim, among other things, to ensure close consultation and to avoid overlaps and gaps in regulatory coverage.