FSC welcomes Govt decision to expand Fintech Select Committee



The Financial Services Council (FSC) has welcomed Parliament’s decision to expand the scope and length of the Fintech Select Committee to focus on initiatives to help Australia become a technology and finance centre.
The FSC said it was pleased to see the committee would focus on options to replace the Offshore Banking Unit (OBU) regime, which the Government had recently announced would shortly come to an end.
Blake Briggs, acting FSC chief executive, said the OBU regime encouraged globally-mobile financial services companies to be located in Australia and its imminent closure could cause operations to be taken offshore.
“It is critical the Government use the Fintech Select Committee to finalise measures that will ensure these activities remain in Australia,” Briggs said.
“The FSC has long urged the Federal Government to remove the barriers to the funds management sector becoming more globally competitive.
“The recent report of the ‘Australia as a Financial and Technology Centre Advisory Report’ set a roadmap for the reforms that are required to achieve the goal of promoting growth.
“The FSC recommends the Committee prioritise the implementation of Corporate Collective Investment Vehicle (CCIV) with competitive tax settings; amending the Investment Manger Regime rules; and removing the withholding tax applying to funds issued under the Asia Region Funds Passport program.”
The FSC said it looked forward to consulting with the Government and the committee to ensure Australia remained” an attractive destination” for global financial services companies.
Recommended for you
ASIC’s enforcement action is having an active start to the new financial year, banning a former Queensland financial adviser for 10 years in relation to fees for no service conduct.
ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay.
Australian licensees are expected to make greater use of custom model portfolios for their clients, according to State Street Investment Management, following in the footsteps of US peers.
Adviser Ratings has argued that it’s time for more advisers to utilise digital engagement tools available to them as a disconnect grows between consumers seeking advice from finfluencers and from professionals.