The single market for financial services in the EU and its impact on globalisation

Abstract

You may be wondering where Australia, a country of approximately 20 million people located 17,000 km from Europe, fits into the theme for today's conference - "the single market for financial services in the European Union and its impact on globalisation". The world, not the least, Europe and Asia (Australia), is a much different place to what it was five years ago. Europe and Asia have been marked by rapid growth and change and this poses great challenges, and opportunities for both regions. Power relatives have changed. There are new challenges to sovereign states. Globalisation has created pressures and uncertainties including new and emerging cross border issues – movements of people, trade and commerce, and the environment. I believe that Europe and Asia have benefited greatly from globalisation. Innovations in technology and communications have reduced the tyranny of distance and new markets have flourished. Asia is now closer to established markets in Europe and North America. Yet, there remains great apprehension about the impact of globalisation. In the midst of our rapidly changing world, Australia has been committed to a key role in the Asia region. We are recognised in Asia, and beyond, for our vibrant economy, relevance and our strategic value. From a regulatory perspective, our approach to globalisation will remain pragmatic, flexible and realistic. There are four Commonwealth government bodies that regulate Australia's financial system: ASIC, APRA, ACCC and the Reserve Bank of Australia. • ASIC has responsibility for market integrity and consumer protection across the financial system; • APRA has responsibility for prudential supervision and statistical collections in the financial sector; • ACCC has responsibility for promoting competition, fair trading and consumer protection; and In addition, the ASX has created the Trans Tasman 100 Index (an aggregated measure of the top 100 listed companies in Australia and New Zealand), and the ASX Asia Index (an aggregate measure of 30 listed companies that are principally based and operate in Asia). These indexes allow for more relevant comparison of companies at a regional level and acknowledge that many companies operate in more than one state.