Regulation top risk for financial services

The threat of regulatory change has outranked cyber crime and PR disasters as the greatest risk to the financial services industry, a survey shows.  

A raft of post-Global Financial Crisis changes in Australia, including the recent Future of Financial Advice (FOFA) reforms, saw regulation move to first place on the risk scale for financial services, according to the Allianz Risk Barometer. 

Niran Peiris, managing director of Allianz Australia, said regulatory fear could create a "systemic threat" for financial services businesses.  

Related News: Moving licensees an insightful process

"At the industry level globally, regulatory change was the number one risk facing the power/utility sectors and financial services, the latter reflecting increasing supervisory intervention around the globe following the Global Financial Crisis," Peiris said.  

"Regulatory change over recent years, as well as foreshadowed reviews or changes in the areas of financial services regulation and carbon taxation/renewable energy, might also be impacting here."   

For Australian businesses in general, regulatory change ranked second to business interruption on the barometer - a jump from eighth place last year. 

Globally, regulatory change did not make the top three in terms of risk, with business interruption, natural catastrophes and fire/explosion continuing to hold the top spots.  

Related Content

SMSF trustees record high level of digital engagement

Digital engagement is growing rapidly in the self-managed superannuation fund (SMSF) sector, with many trustees preferring an online approach to gathe...more

Fiducian and Heathcote link for NZ distribution

Publicly-listed financial services firm, Fiducian Group has moved to extend its reach into New Zealand via a relationship with Clayton Coplestone's He...more

Vic government minister backs IIG

Victoria's minister for small business, innovation and trade has commended an impact investment fund manager for starting a fund that will ‘strength...more



Add new comment