What Labor's second term means for regulators

Labor winning a second term means numerous reforms that fell through the cracks in the lead up to the federal election will potentially see the finish line more seamlessly compared to another party taking power, according to ASIC. Meanwhile, APRA said it is "business as usual" regardless of which party won.

ASIC deputy chair Sarah Court told the Australian Shareholders' Association Investor Conference this morning that a change in government is something that regulatory bodies watch closely as the outcome directly impacts their work.

"In the lead up to an election, you are watching the policies that are coming out from both sides, and frantically trying to get your head around what they are and what they're going to mean for you and your remit and the markets you regulate or the investors that you look after," she told the regulators' panel.

"It would be lying to say we don't watch it extremely carefully."

Typically, a returning government means "less shakeup" for regulators given the familiarity with the people in power they deal with.

The election left several reforms hanging, such as the scams protection framework, Delivering Better Financial Outcomes 2 (DBFO) and unfair trading prohibition.

The election also upended the highly anticipated public inquiry into the failures of Dixon Advisory, which was slated to provide a report by the last sitting day of March 2025.

The Financial Advice Association Australia (FAAA) general manager of policy, advocacy and standards Phil Anderson said he expects that the Dixon Inquiry will still happen and that Labor will support the inquiry taking place.

"However, it was effectively terminated as a result of the election," Anderson said in a statement to Financial Standard, adding that "we will need to wait for the parliament to return to re-instate the Senate inquiry."

The Senate, however, may not sit again until July or August.

"There's a range of other things that consultation had been done, policies drafted, sometimes legislation drafted as well, but didn't quite get over the line. Now those things, I presume, will keep going. So that's easier for us as we know who we're dealing with," Court said.

Also appearing on the panel, APRA executive board member Therese McCarthy Hockey said APRA's mandate under whichever government is sworn in does not stop.

"APRA has an important mandate, financial stability and the regulation of the banks, insurers and the super funds and the protection of those interests... And you [are] constantly doing that, but it is important to stay connected with the government," she said.

"We will have a new minister, for example, we don't know who that is yet, so when we find that out, we're obviously working with them closely, but it is a real sense of business as usual (BAU). We've got to make sure, no matter what happens, we're well positioned for the environment we're in."