There are a wide variety of financial organizations that would like to look after our money. Each type of organisations offers a different type of financial advice and service. Examples of such financial organisations are Banks, Building societies, Credit Unions, Insurance Companies, Stockbrokers, Financial Planners etc. These organisations offer many services such as investment planning, Wealth creation strategies, taxation planning, retirement planning, loans etc. However because it is not rare to come across unfair and unsafe financial industries or businesses, there are laws and organisations that regulate and monitor the financial services industry. .
Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial system. This may be handled by either a government or non-government organisation. Financial regulation has also influenced the structure of banking sectors, by decreasing borrowing costs and increasing the variety of financial products available. There are many laws and organisations that monitor the financial services industry. For example, some of these laws include: The Financial Services Reform Act (FSRA) 2001, The National Protection Act (Cwlth) 2009, Insurance Contracts Act 1984, Superannuation (Resolution of Complaints) Act 1993, Life Insurance Act 1995, Retirement Savings Accounts Act 1997, Trade Practices Amendment (Australian Consumer Law) Act 2010, The Future of Financial Advice Legislation (FoFA), to name a few. .
The FSRA provides a new regime for the regulation of financial products and services, aimed to enhance consumer protection by adding to financial safety and market integrity. It also aimed to help customers better understand increasingly more complex financial products. The Financial Services Reform Act (FSRA) was passed in 2001 and commenced in 2002.