This proposal has four components that would provide funding for banking regulation changes.

Component 1: Install the ACCC as the conduct (competition and consumer) regulator over retail banks, large superannuation funds, insurance companies and retail grade intermediaries, and maintain ASIC as the conduct regulator for the rest of the financial sector.

Component 2: Increase the amount of funding for the ACCC and ASIC to undertake conduct regulation over the financial sector.  The increased amount would be the difference between the funding provided to ASIC in 2010‐11 (adjusted for inflation) and ASIC’s current funding level, and would be allocated evenly between the ACCC and ASIC.  The increased funding amounts for ASIC and the ACCC would be financed via additional Commonwealth spending and offset by ASIC levying arrangements.   

Component 3: Install an independent Chair of the Council of Financial Regulators, with funding provided through additional appropriations to The Treasury.

Component 4: Establish a Financial Regulators Assessment Board, with funding provided through additional appropriations to The Treasury.   

The proposal would have effect from 1 July 2019.