As China’s financial system has become more complex and integrated, calls have intensified for structural reform. In particular, many commentators have called for China to move towards the twin peaks model of financial regulation along the lines of the experience in Australia. This paper explores the insights that China might glean from the experience in...

In the aftermath of the 2008 global financial crisis (GFC), and the catastrophic scale of regulatory failure, much attention has been paid to the various systems of financial system regulation currently in force. Of the total of four financial regulatory systems currently in use, ‘Twin Peaks’ has garnered the most interest, and gained widespread recognition...

Australia adopts a functionally-based model – the ‘twin peaks’ model – under which the functions for financial regulation are consolidated into two regulators: the Australian Securities and Investments Commission (ASIC), which is responsible for the regulation of companies, market conduct and consumer protection; and the Australian Prudential Regulation Authority (APRA), which is responsible for prudential...

This paper provides a theoretical analysis of the twin peaks method of financial system regulation, with particular reference to the Australian iteration of the model. This includes a description of how twin peaks functions, its historical development, and its strengths and weaknesses. An analysis is also provided of an important bifurcation in the Australian model...