The Finance Industry Council of Australia – formed in June to combine the thinking of the Australian Bankers Association, Australian Finance Conference, Australian Financial Markets Association, the Insurance Council of Australia and the Investment and Financial Services Association – wants a “super-regulator” to co-ordinate the activities of the financial services regulators.

The council says in a review of financial sector regulation that a “bureau of financial sector regulation” would analyse and quantify the costs and benefits of regulations already in place. It would also identify regulatory duplications, gaps and easier compliance.

“There needs to be a better understanding of what it costs financial institutions to comply with regulation,” the review says. “When the costs of compliance are understood, it will be possible to determine whether specific regulation is efficient or not.”

One problem that needs immediate attention is the importation of regulation from overseas, the council says. “Problems have arisen where due regard has not been made at an early stage to the costs and complications involved in converting the policy principles into domestic regulatory practice.”