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Labor promises financial services regulatory review
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
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The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
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