The Treasurer and the Shadow Treasurer have compared notes on the report of the Financial System Inquiry and are in broad agreement on the fundamentals of prudential regulation.Speaking at yesterday's CIFR workshop on the FSI, Shadow Treasurer Chris Bowen said the major political parties agreed that, as far as possible, their responses to the report would be bipartisan.In response to some of the FSI's specific recommendations, Bowen said proposed measures to increase competition between large and small mortgage lenders were sensible and positive.The FSI recommended that the prudential regulator narrow the difference between the mortgage risk weights used for capital purposes by lenders using the internal ratings-based methodology (the big banks) and lenders using standardised risk weights. The FSI said that, since IRB was introduced in 2008, the divergence in mortgage risk weights between the IRB and standardised approaches had widened. The average mortgage risk weight for an ADI using the standardised model is currently 39 per cent - more than twice the size of the average mortgage risk weight for banks using IRB models, which is 18 per cent.Bowen said it should be left up to the Australian Prudential Regulation Authority to determine exactly how greater competitive neutrality should be achieved in this area.He said the Government should act on that recommendation soon and not wait to see how Basel Committee deliberations might have an impact.He said he was in favour of the recommendation that superannuation strategy have a single agreed objective, against which policy ideas could be assessed.As a starting point for discussion, he proposed that the objective should be: "Superannuation should ensure that as many Australians as possible have access to adequate resources for a dignified retirement without access to the age pension."He said that the Government's current suggestion that first home buyers be given access to their super to get into the property market would be found wanting, when measured against such an objective.Bowen said the tax treatment of superannuation favoured high-income earners and needed to be addressed. Labor will convene a roundtable on the issue in the next few weeks.He said the dividend imputation system had served Australia very well and should not be changed.