the melbourne review Vol 3 Numb r 1 May 2007the melbourne review Financial regulation: trends and prospects

Achieving and maintaining an optimal regulatory structure for the financial sector is an ongoing challenge in the face of the continual evolution of the sector. What is the scope for improving Australia’s financial regulation and how can we ensure that regulatory evolution reflects social cost–benefit considerations? The Australian finance sector is subject to a wide range of often complicated regulations. This reflects the fact that there is general consensus that some level and form of regulation is required because of the special features of this sector. Involvement in the financial sector is unavoidable, its smooth operations are crucial for economi