Twin Peaks 2.0: Avoiding Influence Over an Australian Financial Regulator Assessment Authority

2021 ◽  
pp. 0067205X2110398
Author(s):  
Andrew Schmulow ◽  
Paul Mazzola ◽  
Daniel de Zilva
Keyword(s):  
Financial System ◽  
Royal Commission ◽  
Regulatory Regime ◽  
Regulatory Capture ◽  
Financial Industry ◽  
Market Conduct ◽  
Twin Peaks ◽  
Current Design ◽  
The One ◽  
Sources Of Influence

Globally, financial system regulators are susceptible to deliberate and inadvertent influence by the industry that they oversee and, hence, are also susceptible to acting to benefit the industry rather than the public interest – a phenomenon known as ‘regulatory capture’. Australia, arguably, has an optimal model of financial system regulation (a ‘Twin Peaks’ model) comprising separate regulators for prudential soundness on the one hand, and market conduct and consumer protection on the other. However, the current design of the Twin Peaks model has not been sufficient to prevent and address prolonged and systemic misconduct that culminated in a public Royal Commission of Inquiry into misconduct in the industry. Subsequent to the Royal Commission and other inquiries, the Department of Treasury has proposed legislation to establish an Assessment Authority to assess the effectiveness of the Twin Peaks regulators. The proposal includes enquiries by an Assessment Authority into the regulators’ independence, so as to identify instances of, and thereby mitigate, their capture. As with all financial system regulators, the Assessment Authority itself may be susceptible to regulatory capture, either by the Twin Peaks regulators, or by the financial industry. Thus, this paper poses the question: how can the new Assessment Authority be optimally constituted by legislation, and operated, to effectively oversee the effectiveness of the regulators, but itself remain insulated from the influence of the regulators and industry? We analyse the primary sources of influence over financial system regulators that the Assessment Authority will likely face and recommend ways in which a robust design of the Assessment Authority can mitigate those sources of influence. In doing so, we adopt an inter-disciplinary approach, drawing upon not only regulatory theory but also for the first time in relation to this question, organisational psychology. Our findings address gaps in the proposed legislation currently before Federal Parliament and propose methods by which those gaps may be filled, in order to ensure that this important reform to Australia’s financial regulatory regime has the greatest chance of success.

scholarly journals Financial Regulatory Governance in South Africa: The Move Towards Twin Peaks

2017 ◽  
Vol 25 (3) ◽  
pp. 393-417 ◽  
Author(s):  
Andrew Schmulow
Keyword(s):  
South Africa ◽  
South African ◽  
Financial System ◽  
System Stability ◽  
Regulatory Enforcement ◽  
Market Conduct ◽  
Regulatory Governance ◽  
Twin Peaks ◽  
Similarities And Differences ◽  
Financial Regulatory

This article examines the implementation of the Twin Peaks model of financial system regulation in South Africa, the purpose of which is to create a financial system stability regulator, and a financial system consumer protection and market conduct regulator. It examines the historical development of Twin Peaks and its regulatory enforcement principles. It then analyses the similarities and differences between Twin Peaks in Australia (upon which the South African reforms are based) and South Africa. Finally the article provides concluding observations.

scholarly journals The Impact of the Twin Peaks Model on The Insurance Industry

2016 ◽  
Vol 19 ◽  
Author(s):  
Daleen Millard
Keyword(s):  
Financial Services ◽  
Financial Regulation ◽  
Insurance Industry ◽  
Market Conduct ◽  
International Trends ◽  
Twin Peaks ◽  
Systemic Risks ◽  
Regulatory Approach ◽  
The One ◽  
The Impact

Financial regulation in South Africa changes constantly. In the quest to find the ideal regulatory framework for optimal consumer protection, rules change all the time and international trends have an important influence on lawmakers nationally. The Financial Sector Regulation Bill, also known as the "Twin Peaks" Bill, is the latest invention from the table of the legislature, and some expect this Bill to have far-reaching consequences for the financial services industry. The question is, of course, whether the current dispensation will change so quickly and so dramatically that it will literally be the end of the world as we know it or whether there will be a gradual shift in emphasis away from the so-called silo regulatory approach to an approach that distinguishes between prudential regulation on the one hand and market conduct regulation on the other. A further question is whether insurance as a financial service will change dramatically in the light of the expected twin peak dispensation. The purpose of this paper is to discuss the implications of the FSR Bill for the insurance industry. Instead of analysing the Bill feature for feature, the method that will be used in this enquiry is to identify trends and issues from 2014 and to discuss whether the Twin Peaks model, once implemented, can successfully eradicate similar problems in future. The impact of Twin Peaks will of course have to be tested, but at this point in time it may be very useful to take an educated guess by using recent cases as examples. Recent cases before the courts, the Enforcement Committee and the FAIS Ombud will be discussed not only as examples of the most prevalent issues of the past year or so, but also as examples of how consumer issues and systemic risks are currently being dealt with and how this may change with the implementation of the FSR Bill.

scholarly journals Federalism Still Matters: The Securities Reference Case

2013 ◽  
Vol 22 (1) ◽  
pp. 79
Author(s):  
Moin A. Yahya
Keyword(s):  
Civil Rights ◽  
Royal Commission ◽  
Financial Industry ◽  
Reference Case ◽  
Provincial Level ◽  
The 1960S

In Canada, the financial industry rests upon “four pillars.” These are the securities, insurance, trust, and banking sectors. The first three have been, historically, regulated at the provincial level under the rubric of “property and civil rights,” while the fourth has been federally regulated under section 91(15) of the Constitution Act, 1867. As early as 1935, however, a Royal Commission recommended the establishment of a federal securities agency tasked with overseeing federally incorporated companies. Nothing came of that. In the 1960s and until last year, numerous other studies came up with proposals regarding the establishment of a federal securities regulator. Some proposed a federal regular coexisting with provincial counterparts, while others proposed one single federal regulator. How to get the provinces on board varied depending on the study that was conducted.

scholarly journals Transformation of the Banking Sector of Ukraine: Reasons and Consequences

2017 ◽  
Vol 1 (13) ◽  
pp. 33-48
Author(s):  
Myroslava Khutorna
Keyword(s):  
Economic Development ◽  
Banking Sector ◽  
Financial System ◽  
Market Concentration ◽  
The Other ◽  
Real Economy ◽  
The Real ◽  
Other Hand ◽  
The One

This paper is devoted to the consideration of the preconditions and results of the banking sector of Ukraine transforming, its influence on the sector’s productivity, stability and significance for the real economy. It’s grounded that banking sector of Ukraine has seriously weakened its potential for the economic development stimulation. On the one hand, due to the banking sector clearance from the bad and unscrupulous banks the system has become much more sensitive to the monetary instruments and its state is going to be more predictable and better controlled. But on the other hand, massive banks’ liquidations have caused the worsening of the confidence in financial system and radical increasing of the market concentration the highest degree of which is observed in the householders’ deposit market.

Missing Part of Halal Supply Chain Management

2018 ◽  
pp. 5456-5464 ◽  
Author(s):  
Ratih Hendayani ◽  
Yudi Fernando
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Islamic Law ◽  
Financial System ◽  
Chain Management ◽  
Product Demand ◽  
Supply Chain Financing ◽  
Financial Flow ◽  
New Perspective ◽  
The One

The increasing Halal product demand in the world made the Halal product industry should make sure all companies operation especially companies supply chain could guarantee product Halalness, so companies supply chain should comply Shariah or Islamic law. Some research about Halal supply chain already publish and give various perspectives about this topic. But unfortunately, there are one important thing that not discuss in previous research about Halal supply chain, the one important things is Islamic financial system that actually can support operation of Halal supply chain because based on the Islamic financial concept, the Halal supply chain can be not Halal or barakah if the supply chain financing not also comply with the Islamic law. For the integrated Halal supply chain, need included the Islamic Financial system, and this chapter will discuss Islamic financial that include in the Halal supply chain such as a Halal fund for the supply chain cost and Halal Financial flow. And bring a new perspective and definition of Halal supply chain management.

Conclusion: Laura is the One

2018 ◽  
pp. 121-122
Author(s):  
Lindsay Hallam
Keyword(s):  
Horror Film ◽  
Twin Peaks ◽  
The One

This chapter celebrate the character in David Lynch's Twin Peaks: Fire Walk With Me named Laura Palmer, who evolved from an image personifying the 'beautiful dead girl' to a character who is complex and flawed, yet powerful and strong. It explains how Fire Walk With Me is considered as a horror film due to Laura's story as it is a horror that is all too real for way too many people. It also mentions Twin Peaks as a place of mystery that is both wonderful and strange and hints that there is something more beyond the surface. The chapter focuses on Laura as the key to the whole Twin Peaks universe. It discusses how the audience got to know more about Laura in Fire Walk With Me.

Biopolitical Excess: Techno-Legal Assemblage of Stem Cell Research in India

2017 ◽  
Vol 22 (1) ◽  
pp. 102-123 ◽  
Author(s):  
Amit Prasad
Keyword(s):  
Stem Cell ◽  
Stem Cell Research ◽  
The Other ◽  
Cardiac Patients ◽  
India Institute ◽  
Regulatory Regime ◽  
Medical Sciences ◽  
Narrow Focus ◽  
The Media ◽  
The One

Stem cell research on cardiac patients at the All India Institute of Medical Sciences (AIIMS), which was disclosed through the media in 2005, created a storm. On the one hand, it was celebrated as a ‘global first in pioneering stem cell medicine’. On the other hand, not only the AIIMS study, but, more broadly, stem cell research and therapy in India was criticised for ‘tall claims [and] questionable ethics’. The responses of the policymakers and regulators in India were equally divergent. How are we to understand the contingency and unpredictability of the regulatory regime in India? The answers to this and other related questions are often presented through a regulatory fix—countries such as India need to tighten their regulatory regime. The need for a legally binding regulatory regime is undeniable; nevertheless, a narrow focus on a regulatory fix fails to explain several issues. In this article, I analyse the stem cell research on cardiac patients at AIIMS. Through a focus on epistemic, ethical and juridical assemblage of stem cell research, I highlight the inescapable contingency in the translation between ‘governmental rationality’ and ‘the practice of government’ and show how this reflects biopolitical excess.

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