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 Reserve Bank of Australia, which chairs the Council; the Australian Prudential Regulation Authority (APRA); the Australian Securities and Investments Commission (ASIC); and the 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

	Philip Lowe 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 Consulting Australian Prudential Regulation Authority
	Tony D’Aloisio Chairman Australian Securities and Investments Commission

	Malcolm Rodgers Executive Director Policy and Markets Australian Securities and Investments Commission
	Ken Henry AC 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.

At the operational level, co-operation arrangements have been set out in bilateral Memoranda of Understanding signed between various members of the Council (Figure 1). The Memoranda cover matters such as information sharing, prompt notification of any regulatory decisions likely to impact on the other agency’s area of responsibility, and consultation arrangements in the event of financial disturbances. 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.

Figure 1: Agencies which have signed bilateral Memoranda of Understanding

The memoranda signed between the various agencies are provided below:

• APRA/ASIC Memorandum of Understanding
• APRA/Treasury Memorandum of Understanding
• RBA/APRA Memorandum of Understanding
• RBA/ASIC Memorandum of Understanding