Australian Opposition Proposes Growth Mandate for Regulators

In a speech delivered this week, Australian Shadow Treasurer Tim Wilson called for an “attitudinal reset” at financial regulators, proposing that agencies including the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) be given explicit obligations to consider industry growth, competition, and innovation alongside their existing responsibilities.

Wilson argued that regulators are currently incentivized to minimize risk without giving sufficient weight to the effects of their decisions on market entry and industry growth. While Treasurer Jim Chalmers issued new Statements of Expectations for ASIC and APRA in July calling for support of growth, Wilson argued that these do not change the regulators’ statutory duties. “Regulators fulfil an important function in our economy, but it must be weighed against the consequences of their decisions,” he said.

As a possible model, Wilson pointed to the Monetary Authority of Singapore, which combines financial regulation with responsibility for developing the financial sector. “In plain English, that means regulators like ASIC and APRA would have explicit obligations to help industry grow, compete and innovate,” he said. Wilson argued that such a mandate would force regulators to consider the wider consequences of their decisions and encourage a shift from risk minimization toward risk management.

He also acknowledged potential trade-offs from a greater emphasis on risk management. Wilson said breaches that cause harm could warrant heavier penalties for established operators, while regulatory requirements should remain proportionate for smaller firms so they do not become barriers to entry. He said ASIC, APRA, and the Reserve Bank should remain focused on enforcement, but within a broader regulatory approach intended to support challengers and new entrants.