Govt told to end financial services uncertainty

The Federal Government has been placed on notice that it must end the legislative and regulatory uncertainty impacting the Australian financial services industry.

It has been told that nearly four years of uncertainty has given rise to significant commercial impacts for the industry.

A succession of speakers told the Financial Services Council (FSC) annual conference on the Gold Coast that legislative uncertainty had been impacting the industry for nearly four years and that it was time to act.

At the same time, the Government was also urged to immediately refer the status of default superannuation funds within modern awards to the Productivity Commission.

Among those making the calls were the chief executive of the FSC, John Brogden, the organisation’s chairman, Peter Maher, the Opposition spokesman on financial services, Senator Mathias Cormann, and a succession of industry executives.

Brogden set the tone for the industry’s concerns when he pointed out that while the FSC supported reform, it was important to remember that there had been no systemic failures within the Australian financial services industry through the Global Financial Crisis.

For his part, Maher said the ongoing uncertainty in the Australian regulatory environment was extracting a price.

However, the Assistant Treasurer and Minister for Financial Services, Bill Shorten, signalled to the conference that the industry would have to wait up to a further month before the first draft of the legislation relating to the Future of Financial Advice changes was tabled.

While many had expected the draft legislation would be released in the first two weeks of August, the Minister indicated to the conference it might not be seen until early next month.