The regulators’ panel discussion at Mutuals 2013 (APRA, ASIC and Treasury) raised some points of general relevance to FSP’s:

• There are no terms of reference yet for Joe Hockey’s Financial System Inquiry but all will be revealed soon;
• The new Government has not yet made a final decision on the details of the Financial Stability Fund Deposit Levy (including whether franking credits can be used to pay it);
• the scope of the new Government’s moratorium on regulation: it will not apply to regulations required to meet international obligations or anything already on the agenda or urgent unforeseen circumstances. The moratorium is only on new issues.
• there are limits on the adequacy of disclosure as a tool for consumer protection. Disclosure should be “multi-layered”. When it does not work regulators may step in;
• ASIC is concerned with the “assymetry” of hybrid investments targeted at retail investors: the promoters treat it as “at risk” equity while investors treat it as debt. This is a particular risk for SMSFs.