The Council of Financial Regulators

What is the CFR?

The CFR is the main coordinating body for Australia’s financial regulators. It is made up of:

  • the Reserve Bank of Australia (RBA)
  • the Australian Prudential Regulation Authority (APRA)
  • the Australian Securities and Investments Commission (ASIC)
  • the Treasury.

It is a non-statutory body, without formal regulatory or policy decision-making powers separate from those of its individual members. The RBA Governor chairs the CFR and the RBA provides secretariat support. It meets quarterly, and operates through a range of sub-groups.

What is its role?

The CFR’s Charter outlines its objectives, scope and operations. The CFR facilitates cooperation and collaboration across member agencies, with the ultimate aim of promoting the stability of the Australian financial system and supporting effective and efficient regulation. In pursuing this aim, the CFR also seeks to support competition in the financial system.

The CFR works to support financial stability by:

  • identifying systemic vulnerabilities in the Australian financial system that may give rise to financial instability, and coordinating actions by member agencies to mitigate them
  • supporting the coordination of financial regulation, seeking to address any areas of overlap or gaps, minimise regulatory costs and promote competition
  • maintaining crisis management readiness to support a whole-of-system response to instances of financial instability.

Coordination and cooperation between the CFR agencies is supported by Memoranda of Understanding (MOUs) and other bilateral coordination arrangements.

How does the CFR work with other non-member agencies?

The CFR draws on the expertise of other non-member government agencies where appropriate, and meets jointly with the Australian Competition and Consumer Commission (ACCC), the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Australian Taxation Office (ATO) at least annually to discuss broader financial sector policy.

Given the strong financial linkages between Australia and New Zealand, the CFR also places considerable importance on the effective coordination of trans-Tasman crisis resolution and planning arrangements, which takes place through the Trans-Tasman Council on Banking Supervision (TTBC).