The Federal Opposition has flagged a make-over of Australia’s financial services regulatory regime in the event that it gains office at the next Federal Election.
The Opposition’s intentions were revealed by the Shadow Treasurer, Chris Bowen at the Financial Services Council (FSC) Leaders Summit in Sydney where he said such a make-over would be generated out of a Royal Commission into the banking and financial services industry.
He said the Opposition remained committed to holding a Royal Commission in circumstances where no one could argue with the impact of the industry misbehaviour that had occurred in recent years and the trauma and distress which had been inflicted on families.
“There are compelling reasons for a thorough review of the financial services regulatory system in Australia,” Bowen said.
He said Labor’s review of the regulatory settings would examine what currently existed and what was needed to improve the current regime.
Bowen acknowledged that the Financial Systems Inquiry (FSI) had not recommended changes to the financial services regulatory settings but claimed much had changed since then.
“The time is right to review financial services regulatory architecture,” he said.
Bowen said the factors leading to that analysis were higher household debt, the ad hoc nature of recent regulatory changes and the rapid development of financial services technology.
“The system must be fit for purpose,” he said
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
Senator Jane Hume will join the speaker lineup at the inaugural Australian Wealth Management Summit.
New research from ART has found less than a third of women feel their superannuation is in a good position, reiterating the importance of opening up the advice arena to super funds.
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