Financial system reform needs rigor: FSC

While the appetite for immediate reform of the financial services industry is clearly strong, Financial Services Council (FSC) chief executive officer, Sally Loane, has urged that any legislation to implement the recommendations of the Banking Royal Commission should be treated with the same diligence and rigor as any other new bills brought before parliament.

Loane said there were already several important superannuation reform bills “languishing” in Parliament that had not yet been passed into law, and the next tranche of financial system reform needed to be treated with the same rigor and scrutiny.

She said that while the sector’s damaged reputation needs quick attention, for some areas of reform, comprehensive industry consultation and further analysis was required.

“While we must move quickly to repair the sector’s damaged reputation and ensure that consumers are able to trust the people, products and services in our sector, it was only eight days ago that the final report of the Royal Commission was released by the Government,” she said.

“In some important areas of reform, further information has been either been sought by Treasury or further analysis is required. We need comprehensive industry consultation to ensure that the unintended consequences of any technical changes are identified and dealt with.”