Response to the Exposure Draft of the 2011 Strategic Roadmap for Australian Research Infrastructure

Posted on July 22, 2011
Filed Under Inquiry Submissions, Policy, Research Review | Leave a Comment

Submission to the Australian Government, Department of Innovation, Industry, Science and Research

Prof Kevin Davis (ACFS), in collaboration with Dr Maurice Peat (University of Sydney) and Prof Stephen Taylor (University of Technology, Sydney), provided feedback on the Exposure Draft of the 2011 Strategic Roadmap for Australian Research Infrastructure.

The 2011 Strategic Roadmap for Australian Research Infrastructure will be developed to inform future decisions on where Australia should make strategic infrastructure investments to further develop its research capacity and improve innovation outcomes over the next five to ten years.

The 2011 Roadmap aims to consider new and emerging areas of research which may require different types of infrastructure in the future, and determine whether the current mix of Capability areas continues to meet researchers’ needs.

In their Response, Prof Kevin Davis and co-authors proposes a new capability area entry for the Roadmap – Mechanisms of Economic Activity, including the role of the financial sector, and tools require for the management of this activity. The Response emphasizes the importance of the proposed research area considered in its own right and not as a sub-branch of the culture and communities capability area.

“The Financial services industry is the largest sector in the economy in terms of contribution to GDP…… Innovation in the design and regulation of economic mechanisms (markets and financial institutions), supported and enhanced by eResearch infrastructure, has the potential to deliver substantial social and economic benefits.”

The Response also details the strategic impact, challenges, assumptions and key research infrastructure requirements of the proposed capability devoted to economic and financial research. Examples of government support into the mechanisms of economic activity capability area include, the recent substantial co-investment by the Federal and NSW governments to establish a national “Centre for International Finance and Regulation” (CIFR); and the Victorian government’s seed funding and continuous support for the Australian Centre for Financial Studies (ACFS).

View the full Submission

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Contact details:

Professor Kevin Davis
Research Director, Australian Centre for Financial Studies and
Professor of Finance, University of Melbourne
W: +61 3 9666 1050
info@australiancentre.com.au

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16th Melbourne Money and Finance Conference – Retail and Household Finance: Current Issues

Posted on July 18, 2011
Filed Under Banking, Financial Institutions and Markets, Event News, Funds Management & Superannuation, Insurance, Policy, Publications, Research Review | Leave a Comment

At this long-running by-invitation annual Conference much of the value is in the discussion. Around the theme of Retail and Household Finance, 12 original papers were presented, critiqued by discussants, then discussed under the Chatham House Rule.

To ensure a well-rounded discussion, delegates are invited from across the financial services industry, academe, and governmental and regulatory bodies. Papers have also been selected to represent a breadth of issues in the industry, presented by leading researchers from diverse backgrounds. The interaction with leaders from different aspects of the industry has long been highly regarded by delegates and is a reason why many attend annually.

The theme this year Retail and Household Finance was selected due to its current relevance, as reflected in the number of recent inquiries and the range of regulatory proposals relevant to this theme. Researchers this year cautioned policy-makers about future banking regulation saying “Competition is not a word in the Basel lexicon”. Despite a call for a rethink of the “fundamental philosophy of financial services”, most discussion focused on the unintended consequences of recent consumer financial regulation. For instance, requirements for responsible financial advice may lead to fewer people receiving advice as advisors exit unprofitable areas. Also, moral suasion by politicians can be counter-productive e.g. ending mortgage exit fees could lead to the benefit of large banks over small.

A key driver of consumer finance is the ability of individuals, when faced with choice, to assess basic statements about risk and their behaviours. A number of papers discussed different aspects of behavioural finance. Based on a survey conducted at the Conference about top issues in Retail and Household Finance, issues identified for top research priority concerns financial literacy and consumer welfare such as, education and quality control of financial advisors, effective communication of financial products and risks to the community, financial innovations for low income earners, and adequacy of retirement savings and post-retirement products.

After the conference, with insights from discussions, papers are edited for publication in JASSA, Finsia’s quarterly Journal of Applied Finance, for the benefit of the wider financial community. Papers, presentations and discussant notes are also available online on the ACFS website.

Since inception, ACFS, and previously MCFS, has been hosting the Melbourne Money and Finance Conference. The Conference exemplifies the Centre’s work in the industry as a thought leader by enabling contribution to public debate and policy outcomes, and by facilitating linkages between research and industry to promote collaboration and excellence in financial services.

View Conference program and publications

Contact details:
Australian Centre for Financial Studies
T: +61 3 9666 1050
info@australiancentre.com.au

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ACFS Submission to the Natural Disaster Insurance Review Issues Paper

Posted on July 13, 2011
Filed Under Event News, Inquiry Submissions, Insurance, Policy | Leave a Comment

Submission to NDIR Issues Paper, based on feedback from the ACFS Disaster Insurance Inquiry Twilight Forum

The Natural Disaster Insurance Review released an Issues Paper and identified three alternative models to improve access to flood cover for home insurance. It also considered whether any new arrangements for flood insurance for homes might be extended to contents, strata title buildings and small business.

In crafting the response to the Issues Paper, ACFS hosted a discussion panel, Disaster Insurance Inquiry Twilight Forum, with the following speakers and panellists:

• Mr John Trowbridge (NDIR Panel Chairman and APRA)
• Prof John Freebairn (University of Melbourne)
• Nicholas Hossack, (Australian Bankers’ Association)
• Prof Bob Officer (Acorn Capital)
• Mike Vine (Standard & Poor’s)
• Moderater: Prof Kevin Davis (ACFS)

The discussion was well rounded and frank with panellists and members of the floor with opinions from different aspects of the issue. Forum participants spanned a wide range of backgrounds and organisations such as universities, regulatory departments, key industry bodies, insurance and financial services corporations, as well as NPOs. ACFS was able to extract insights from the forum into a submission to NDIR.

View the full Submission

This Submission was prepared by Kevin Davis, Research Director, Australian Centre for Financial Studies and Professor of Finance, University of Melbourne.

View other ACFS Submissions

Contact details:
Professor Kevin Davis
Research Director, Australian Centre for Financial Studies and
Professor of Finance, University of Melbourne
W: +61 3 9666 1050
info@australiancentre.com.au

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