Regulators ensure one size does not fit all – Aviva

Global financial services companies need strong local operations in Australia because of this country’s strict regulatory requirements, according to Aviva Group chief executive Richard Harvey.

Harvey said the different regulation of financial services products means no company could offer a ‘one product fits all’ globally.

“You have to recognise the more fully-fledged the company becomes globally, you have to have strong local companies to deal with the regulations in that country,” he said.

“The local tax laws are different, superannuation is different, risk products are different in every country due to regulations.”

Harvey accepts while products cannot cross borders, management experience and expertise can.

There is also brand management, which in recent years has seen the old brands of Norwich Union and CGU disappear to become Aviva globally. The acquisition of US financial services company AmerUS last month will also be re-branded Aviva in due course.

“It is hard to get efficiencies across a global group such as Aviva, but we can eliminate some inefficiency through the use of management skills and knowledge,” Harvey said.