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 regulation. This paper examines the anatomy of the Australian twin peaks model from a legal and regulatory perspective. It also reflects on the work of the Financial System Inquiry (FSI) of 2014, which reviewed Australia’s financial system and examined issues that are relevant to the operation of the twin peaks model.