ABA submission promotes the value of advice

The Australian Bankers’ Association (ABA) has called on the Government to address the barriers to investors accessing financial advice as part of its submission to the committee inquiring into banking competition.

The ABA pointed to the need for greater consumer research and financial literacy, better disclosure around financial products and electronic distribution channels, as well as financial advice.

It also stated that the Government should address various barriers and improve access to and promote the value of financial advice “as being important to promote greater participation by Australians in their financial decisions and banking and financial services options”.

ABA chief executive Steven Münchenberg (pictured) said there was evidence of competition in banking but initiatives could be put in place to further enhance competition in the marketplace, “particularly to improve all lenders’ access to funds, which may put downward pressure on interest rates”.

The ABA made a number of recommendations to the Senate Economics Committee inquiry into banking competition, such as the retention of the Financial Claims Scheme, measures to increase the supply of deposits and reduce inequalities in the tax treatment across savings products, investments and asset classes, and other reforms and initiatives to do with a covered bond market, securitised mortgages and fixed income assets.