Financial system inquiry is pivotal for the industry’s evolution
John Brogden
The draft terms of reference for the financial system inquiry announced by the Prime Minister and Treasurer last night, provide a framework for the evolution of Australia’s financial services industry into a major services exporter in the 21st Century according to the Financial Services Council.
“Australia’s financial services industry is looking to this inquiry to establish the architecture for growth into Asia,”FSC CEO John Brogden said.
The FSC welcomed the appointment of David Murray AO as chair of the review saying he is the “right person at the right time” for the role.
“David Murray has a deep knowledge of the financial services sector,” Mr Brogden said.
“He has spent his entire career in the financial services industry and has extensive experience in financial markets. We are pleased that he will be supported by a council of international experts to advise on international competitiveness and offshore regulatory frameworks.”
He also said: “The financial system inquiry will play a critical role in underpinning Australia’s future economic growth.”
“We are starting from a position of strength with a sophisticated, well-functioning financial services system which has withstood the biggest stress test on our economy since 1929.”
“The financial system inquiry is timely as we are at the beginning of the next phase in the evolution of Australia’s financial services industry. “
“As one of Australia’s major growth industries, financial services must be able to deliver more for all Australians and be more globally competitive.”
Mr Brogden said he expected one area of emphasis in the inquiry would be the need for greater competition and trade in financial services. In particular, the export of financial services to Asia and what the industry can do to link with the economies of Asia.
“Australia already has some runs on the board. The Asia Region Funds Passport is under development and the Investment Manager Regime and Significant Investor Visa regimes have been established.”
Mr Brogden said he was pleased that superannuation was a central part of the inquiry.
“The key difference between now and when the Wallis inquiry was conducted 16 years ago is that superannuation is now a $1.6 trillion industry – bigger than mining and the ASX. By 2035, superannuation will be around $7 trillion.”
