Planners ‘barely touched’ by regulation: banking head
The head of a major Australian bank has included financial planners in a number of finance sectors he claims have been “tickled, but barely touched” by regulation.
Calling for greater regulatory consistency in the finance sector, Bank of Queensland managing director David Liddy said yesterday that the banking sector had experienced a strong regulatory regime while other sectors of the finance industry had not.
“So while the banks are regulated, regulated and then, just to be sure, regulated again, we have situations like Westpoint and the mortgage broking or financial planning industries which seem to sail blissfully on; tickled, but barely touched by the regulation stick,” he said.
Liddy said the finance sector faced major regulation challenges to ensure it continues to meet the high standards that have been set in Australia over the past 50 years.
“But we must ensure that these regulations actually achieve what the community demands, and do not just insert layer upon layer of bureaucracy and cost to the process of doing business, taking out a loan, or making a deposit.
“After all, this all gets passed on to the consumer eventually.”
The Australian Securities and Investments Commission, Australian Prudential Regulation Authority and the Reserve Bank of Australia have had a dramatic impact on businesses over the past five years, Liddy said.
“Regulating for regulation’s sake” should be avoided, he said.
He also called for the protection of shareholders, customers and costs to be considered before any new regulation was released.
“After all, none of us would like to think we are just constantly covering ourselves for the what-ifs just so no one could be accused of doing nothing the next time there is another HIH or, God forbid, Westpoint.”
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