Macroprudential Analysis and Policy in the Australian
Financial Stability Framework – September 2012
3. Role of the Council of Financial Regulators (CFR)
The CFR is an inter-agency body designed to ensure cooperation and collaboration between the RBA, APRA, ASIC and the Australian Treasury. Its ultimate objectives are to contribute to the efficiency and effectiveness of regulation and to promote stability of the Australian financial system.[9] The CFR is non-statutory and has no regulatory functions separate from those of its members. It meets roughly quarterly and is chaired by the Governor of the RBA.
The CFR provides a forum for identifying important issues and trends in the financial system, including those that may impinge upon overall financial stability. It is also responsible for ensuring that there are appropriate coordination arrangements for responding to actual or potential instances of financial instability. In the few instances where members' responsibilities overlap, the CFR provides a venue to ensure that these are resolved.
As specified in its Charter, the CFR's role is to contribute to the efficiency and effectiveness of financial regulation by providing a high-level forum for cooperation and collaboration among its members. Its structure is designed to create a cooperative environment where members can share information and views and discuss regulatory reforms. During the crisis in particular, it has proven to be an effective means of coordinating responses to potential threats to financial stability. The CFR also has a role in advising the Government on the adequacy of Australia's financial system architecture in light of ongoing developments. These arrangements provide a flexible, low-cost approach to coordination among the main financial regulatory agencies.