Australia’s financial services industry will not be immune from the effects of the global financial crisis, according to speakers at the Australian Securities and Investments Commission (ASIC) summer school last week.

Superannuation Minister Senator Nick Sherry told participants regulatory arrangements have often failed to keep pace with the globalisation of financial activity and praised Australia’s regulatory system for standing up to it.

“We are all well aware that the world is in dire financial straits,” he said. “Globally, growth is expected to fall to the lowest level since World War II.”

Organisation for Economic Co-operation and Development Deputy Director Adrian Blundell-Wignall urged a regulatory clampdown on banking and the imposition of strict firewalls between banking, investment banking and insurance.

ASIC Chairman Tony D’Aloisio told the summer school that investors expect regulatory changes during these economic times to instill confidence in markets. But he warned that no matter what regulators do, crises can emerge in which regulators would be ill-prepared.