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Which of the following is NOT associated with Australian regulatory structure? I. Regulation of market integrity and consumer protection by ASIC II. Supervision of competition policy by Australian Competition and Consumer Commission (ACCC) III. Maintaining the soundness and stability of the financial system by RBA IV. Prudential regulation of authorised deposit taking institutions by APRA and emergency liquidity support of the overall financial system together with ensuring solvency of individual financial institutions by RBA

Question

Which of the following is NOT associated with Australian regulatory structure?

I. Regulation of market integrity and consumer protection by ASIC

II. Supervision of competition policy by Australian Competition and Consumer Commission (ACCC)

III. Maintaining the soundness and stability of the financial system by RBA

IV. Prudential regulation of authorised deposit taking institutions by APRA and emergency liquidity support of the overall financial system together with ensuring solvency of individual financial institutions by RBA

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Solution

The statement "Ensuring solvency of individual financial institutions by RBA" is NOT associated with the Australian regulatory structure. While the Reserve Bank of Australia (RBA) does provide emergency liquidity support to the overall financial system, it does not ensure the solvency of individual financial institutions. This responsibility falls under the purview of the Australian Prudential Regulation Authority (APRA).

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