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.
Recommended for you
Financial advisers are reminded to ensure their CPD is up to date with the Financial Services and Credit Panel making its second determination in a week after an adviser failed to meet the requirements.
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
While efficiency remains a top priority for Australian advisers, State Street has revealed the profession is now juggling this desire with the need to maintain personalisation of its service offering.
A possible acquisition of data provider Iress is becoming a greater likelihood after the firm announced it is engaging with multiple interested parties.
