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Proposal Deadline: 12 April 2019
Advance Australia Fair, or Where? Financial Regulation in the Aftermath of Hayne (June 2019)
Australia established a Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry in 2017, under restricted terms of reference and timelines. Contrary to expectations, the restrictions have worked to its advantage. The result in interim form is an elegant disposition of the ethical malaise facing financial sector on a global basis. It is an innovative design based on core normative principles, which if grasped, has the potential to be transformative, not only in Australia but across the globe (Royal Commission, Interim Report, 2018, p. 290).
Commissioner Kenneth Hayne has put in place an intellectual scaffolding that can be removed without compromising the integrity of the structure itself. It is in effect a challenge to corporate, regulatory and political communities to put the interests of ‘clients’ (as citizens and fellow human beings) first in design and execution.
- obey the law;
- do not mislead or deceive;
- be fair;
- provide services that are fit for purpose;
- and deliver services with reasonable care and skill.
- When acting for another, act in the interests of that other.
The Royal Commission is scheduled to hand down its final report in early February. It follows a scathing report by the Productivity Commission on poor governance, ineffective control, confused regulatory mandates in the superannuation sector, and a disturbing assessment released by the prudential regulator into the culture and governance of Commonwealth Bank of Australia, the largest bank in the country.
Law and Financial Markets Review is putting together a special issue to examine the multifaceted questions of risk and compliance, governance and oversight, culture and purpose raised by the Australian exploration of its much-vaunted ‘twin peak’ model of oversight. The issue is scheduled for publication in June 2019, with contributions required no later than 12 April.
The aim is to inform and influence the trajectory of corporate, regulatory and political debate in the aftermath of the publication of the Royal commission Final Report. The timing is enhanced because a general election must be called by June 2019, with a budget scheduled for publication in April. The budget, in turn, will give a strong indication of the federal government’s response to the challenges posed by the Royal Commission and the Productivity Commission.
Without limiting disciplinary or inter-disciplinary perspectives, among the critical issues we seek to address are the following:
- How does the final report differ from the interim report?
- Do the normative criteria informing Hayne’s deliberations for the basis for credible reform that has the capacity to rebuild trust?
- If so, how, if not, why not?
- Is it appropriate to introduce questions of purpose and social licence into operating models and by what metrics can or should these be judged?
- On what basis can or should oversight of regulators – markets conduct, prudential or competition – be strengthened
- What insights can be gained from behavioural economics to ‘nudge’ social norms and on what basis can or should they be justified?
The contribution can one of two forms. The first, aimed primarily at practitioners, should be limited to 2,000 words and explore the practical stumbling blocks associated with design and implementation. Longer form articles, aimed primarily at academics from across the disciplines, should not exceed 8,000 words and will be subject to peer-review. These can take empirical or normative perspectives and we welcome articles using qualitative or quantitative approaches.
We you have any queries, please do not hesitate to contact the General Editor:
Editor, Law and Financial Markets Review