Beyond administration: redefining the challenge of regulatory change

The corporate and financial sectors are facing increasing regulation, however, many of the reforms to date have been criticized for being only partially successful. This paper examines the approach used for the introduction of Financial Services Reform (FSR) for general insurers in Australia, which has received significant criticism. It was found that the approach adopted by the regulator for implementation of FSR was largely administrative, with a focus on technical definitions and compliance by companies. However, the recognition of the diversity of stakeholders and the complexity of change involved in implementing FSR effectively was lacking. Based on this research, it is argued that while efficient administration is necessary it is not sufficient for effective implementation of new regulations. Change initiatives are also required for all stakeholders reinforced by appropriate incentives for regulators and companies, with measurable and relevant benefits for customers and the community.Copyright © 2007 John Wiley & Sons, Ltd.