One measure that was floated by the Financial System Inquiry in its interim report has been dropped in the final report.The report from David Murray's panel said: "If implemented, this package of reforms should prevent the need for further structural reform in the industry, such as ring-fencing certain operations of the major banks."Ring-fencing has become a template policy option in some northern hemisphere markets, but the FSI panel dropped the option in the face of APRA and RBA scepticism.In a further proposal likely to be adopted by the government as it can be passed off as a tax cut, the panel said: "The inquiry also believes that introducing the proposed reforms would reduce the need to pre-fund the Financial Claims Scheme."