Regulation and Reforms to Enhance Financial Stability in the Post-GFC Era

It has been said that the intellectual origins of the global financial crisis (GFC) can be traced back to “blind spots” in traditional financial theory, which obscured complexity and financial innovation in contemporary markets. There has been growing recognition that changes to the modern market, including the effects of globalisation, extreme mobility of capital and technological advances, require corresponding changes in regulatory approach and structure. The crisis highlighted the need for specific regulation to enhance financial market stability, and the importance of ensuring that such regulation is both informed and effective. This paper discusses key regulatory issues and developments emerging from the GFC in relation to three distinct areas - financial market regulation; taxation; and banking and finance. The paper analyses the adequacy and efficacy of Australia's legal infrastructure in these three areas from a comparative perspective