The Australian Financial Commission (AFIC) is currently investigating the failure of the Commonwealth to conduct an independent review of the financial services industry after the 2016 state election.
The audit found the sector had been overstretched by the 2008 global financial crisis and had been left with insufficient funds to deal with the economic downturn, but the financial regulator has not yet made a decision on whether to open a full review.
The review is being undertaken by the Australian Financial Reporting and Accountability Authority (AFRA), a body set up to oversee the financial reporting of financial institutions.
AFRA is also the regulatory body for the financial sector that oversees Australia’s central bank.
The AFRA is a government agency.
Its mandate is to oversee financial reporting in the financial industry, including the reporting of the Australian dollar, the value of Australian assets and liabilities, and the value and conduct of the banking system.
The agency is also tasked with overseeing the conduct of a number of other financial services businesses, including insurance, real estate, financial institutions, and investment banks.
The audit was prompted by a report released by the Financial Stability Review Panel (FSRC) that found Australia’s financial system was not sufficiently robust to prevent the global financial meltdown.
The report said Australia’s banks were too small to fail, too large to be insured, too fragmented to be adequately capitalised and too inefficient to meet their responsibilities.
The FTAs findings led to the government’s first review of financial regulatory oversight in Australia since the 2008 financial crisis.
The Government’s Financial Sector Review found the financial system had been breached.
The FSRC’s review concluded that Australia’s regulatory frameworks for financial services had been inadequate, but did not consider whether the Government should take any action to remedy the situation.
The Federal Government announced it was seeking the views of the FSRC on its findings.
The Abbott Government has announced that it will not make any further comment on the FSRA’s findings.
Topics:government-and-politics,government-prince-andrew,business-economics-and_finance,industry,wealth-and/or-monetary-policy,government—state-issues,australiaFirst posted October 25, 2018 08:34:58Contact Lisa DeakContact Sarah WestmoreContact Matt Johnson