A speech by Greg Medcraft, Chairman, Australian Securities and Investments Commission at the American Chamber of Commerce in Australia (AmCham) business briefing (Sydney, Australia), 30 November 2016
Introduction
Thank you for inviting me to speak at this AmCham lunch today.
Today I would like to talk about how ASIC is positioning itself as a regulator for the future.
But before I do, it would be remiss of me not to make some general comments about recent developments in the US and in Europe and their implications for us.
I think it is fair to say we are about to embark on a period of unprecedented political and economic uncertainty, driven by the change in administration in the US, the Brexit process in the UK and Europe and elections in key continental European jurisdictions.
The idea that politics should be about the local – and not the regional or the global – has resonated – and is resonating – through each of these changes and developments – particularly with those who feel they've been left behind through a period of significant economic and social change.
Globalisation and the value of trade, in particular, has been demonised – with self-evident effect.
We in Australia will watch with considerable interest to see how the rhetoric of the campaign trail will play out in the new policy settings developed in the US, in particular, and in Europe.
As a small open economy, we have – on balance – benefitted significantly from globalisation.
In the capital markets space, the need to reduce the barriers to cross-border activity has long been a key part of our policy settings.
This has been driven by a belief that issuers benefit from opportunities to raise capital in other markets and investors and financial consumers have and will benefit from the broader range of investment opportunities offered by investing outside Australia.
We don't want to see these benefits lost.
So, the challenge for us in Australia will be to ensure the message about the benefits and value of globalisation to economies like ours is understood – and taken into account – as policy settings in our key partners are recalibrated.
And through this period of change and recalibration it will be critical for policy makers and regulators to keep channels of communication and co-operation open.
We have had great working relationships and open and constructive dialogue with our counterparts in the US and Europe. We will continue to use these channels to ensure our voice and our interests are heard.
Industry groups such as this will also be an important avenue of communication and advocacy of our interests.
So turning to how ASIC is positioning itself as a regulator for the future, I would like to touch on:
- ASIC's vision
- how ASIC is using data analytics currently and in the future to help achieve our vision, and
- how our transition to industry funding will help ensure we are equipped to meet our future challenges.