Centre for International Finance and Regulation

The Centre for International Finance and Regulation (CIFR) is a Centre of Excellence established in 2011 to address fundamental issues affecting the Australian financial industry. CIFR’s mission is to promote financial sector vibrancy, resilience and integrity, supporting Australia as a regional financial centre through leading research and education on systemic risk, market and regulatory performance and financial market developments. CIFR has funded 71 research projects, involving well over 100 researchers from domestic and international universities.

For Australia’s financial industry, CIFR provides a strategic link between academia, policy-makers, regulators and other industry participants.  By engaging with industry, undertaking world-class research, delivering highly relevant educational events and providing valuable inputs to stakeholders,

CIFR is supported by consortium partners including:

  • Government Partners: Australian Government Treasury and NSW Government Department of Industry
  • Australian University Partners: UNSW Australia, The University of Sydney, Macquarie University, University of Technology Sydney, The University of Melbourne and Australian National University
  • Research Centre Partners: CMCRC and SIRCA
  • Industry Partners: Commonwealth Bank, KPMG, Macquarie Bank and King & Wood Mallesons

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Centre for International Finance and Regulation

Research report

09 Dec 2016

CIFR’s mission has been to promote the vibrancy, resilience and integrity of the Australian financial system through research, education and engagement.

Between 2012 and 2016 CIFR funded and facilitated the completion of 73 research projects addressing important issues impacting the...

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Working paper

30 Oct 2016

The management of capacity is considered from the perspective of institutional asset owners. How capacity differs across asset classes is outlined. Investment strategies that offer greater capacity are identified. A discussion of capacity management for multi-asset portfolios highlights how...

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Submission

26 Oct 2016

The Centre for International Finance and Regulation (CIFR) welcomes the opportunity to provide input to the Productivity Commission inquiry into alternative default models for the superannuation industry. This submission makes a few points, but they are vital:

1. The entity that has the...

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Working paper

30 Sep 2016

The number of self-managed superannuation funds (SMSFs) has grown at more than 5% p.a. over the past five years. The net growth rate consists of 7% new SMSFs and 2% closures. More than 570,000 SMSFs now serve over one million members but little is known about the experiences of members. We...

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Working paper

30 Sep 2016

Self-managed superannuation funds (SMSFs) – small retirement savings funds with four or fewer members – now manage almost one third of retirement savings in Australia, and serve over one million members. The number of SMSFs has increased to more than half a million in two decades. Yet little is...

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Working paper

30 Sep 2016

This report examines the evaluation of capacity in an investment management context, outlining the key issues and various methods of analysis. We address the following question: “how large can a fund get before it is unable to create additional value for its investors?” In doing so, we frame the...

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Working paper

14 Sep 2016

Superannuation fees have come under public scrutiny in recent years with the belief that many are set too high. This report focuses on a sample of Australian superannuation funds to gain a better understanding of the factors that influences the fees that they charge. We examine how fund size,...

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Working paper

03 Sep 2016

We propose a method for global equity fund performance evaluation that extends existing research by addressing both equity and currency factor exposures. Returns in excess of the risk-free rate are decomposed into contributions arising from the market, exposure to six equity and three currency ‘...

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Working paper

31 Aug 2016

We develop a theoretical and empirical framework to model the international connections between fi…nancial institutions and sovereign debt markets. By allowing for both good and poor returns on the investments of fi…nancial institutions in real economy fi…rms and the potential for haircuts in...

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Submission

31 Aug 2016

Comments on Draft Report: “How to Assess the Competitiveness and Efficiency of the Superannuation System” The Centre for International Finance and Regulation (CIFR) welcomes the opportunity to provide further input to the Productivity Commission (PC) during Stage 1 of its investigation into the...

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Video interview

14 Aug 2016

Australia’s ‘two strikes’ rule empowers shareholders to vote on a board spill if the compensation report of a public company receives 25% or more dissenting votes for two consecutive years. ‘Say on pay’ legislation has been introduced in several countries but Australia’s version is unique in...

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Working paper

10 Aug 2016

An important component of the Basel Committee on Banking Supervision's framework of capital measurement and capital standards is the public disclosure of regulatory information (referred to as “Pillar 3” within the framework). The standard sets minimum requirements for the public disclosure of...

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Working paper

10 Aug 2016

This report discusses how high frequency trading (HFT) has changed the dynamics of the market and whether traditional academic measures of market “quality” are relevant in the new world of electronic trading. Using existing measures of market quality, which were designed over 20 years ago, much...

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Video lecture/presentation

04 Aug 2016

Professor Yermack said that the Australian Securities Exchange (ASX) is presently studying whether to convert the exchange to blockchain technology. The aim is to reach a decision in 2017, with the hope of implementation by 2018. If the ASX adopts a blockchain mechanism for the...

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Working paper

26 Jul 2016

There is considerable debate about the size of fees charged by superannuation funds. This paper investigates both investment fees and administration fees and shows that there are economically valid reasons why most investment fees are set at their current level. Our results show that on average...

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Submission

08 Jul 2016

CIFR congratulates the Federal Government on initiating the Productivity Commission inquiry into the availability and use of public and private sector data by individuals and organisations in Australia. CIFR’s submission is authored by Dr Kingsley Jones, a CIFR Research Fellow, and an expert in...

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Working paper

07 Jul 2016

The net effects of algorithmic and high-frequency traders mask considerable heterogeneity in how they impact institutional transaction costs. Using regulatory data, we analyze the heterogeneity across individual trading accounts. We develop a method to identify subsets of traders causally...

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Working paper

30 Jun 2016

Using a unique but confidential database, this study examines the capital management practices of Australian banks under the Basel regulatory framework. We find evidence of a significantly negative relationship between the internally targeted capital buffers of banks and the state of the...

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Working paper

30 Jun 2016

This paper reviews the nature of Australian bank prudential regulation before and after the Global Financial Crisis (GFC). It begins by providing a detailed conceptual framework for
understanding the functions of banks and deposit-takers, the theory of what can go wrong with the operation...

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