Expanding the regulatory toolkit: banning financial products on product safety grounds.

Australia's financial markets have evolved significantly in recent years as government superannuation policies have forced people into investment markets only to be confronted by a wave of complex financial products. However, the financial regulation framework has failed to keep pace with these changes and it has become obvious that information disclosure and conduct regulation are unable to effectively protect investors. In response, a philosophical shift is underway with a focus on intervention in product markets to prevent consumer detriment. A key tool in this shift is a product banning power. This article considers whether such a power is appropriate by analysing Australia's consumer product safety regime and applying it to financial products. It argues that despite the challenges associated with operationalising a concept of 'safety' for financial products and enforcing a product banning power, these are far outweighed by continuing with the current framework. [ABSTRACT FROM AUTHOR]