Associations welcome report aimed at boosting financial sector

The Association of Superannuation Funds of Australia (ASFA), the Investment and Financial Services Association (IFSA) and the Finance Sector Union (FSU) have welcomed the Australian Financial Centre Forum report that has made numerous recommendations on how to enable Australian financial institutions to compete internationally.

The report, "Australia as a Financial Centre: Building on our Strength", has made recommendations on how to make Australia a more attractive place to invest.

“Australia’s high standards are derived from a mix of regulatory stability and a well trained and highly qualified workforce who ensure best practice across the finance sector,” said ASFA chief executive Pauline Vamos, who stated that the Asia Pacific investment community looks to Australia for leadership.

She said the potential to share this expertise with the Asia Pacific has not been fully realised.

“Australia’s superannuation sector has the ability to be a world leading provider of training and education for trustees and administrators,” Vamos said. “In particular, the rise of India and China with their respective funds management and retirement savings industries presents Australia with a unique opportunity to become a key exporter of governance and fiduciary education and training.”

She added that superannuation funds would benefit both directly and indirectly through Australian financial institutions gaining even greater scale through expanding internationally.

The Finance Sector Union (FSU) has also welcomed the report, particularly its recognition of how much the industry and its well-trained workforce contribute.

“After years of seeing finance jobs leave Australia, we welcome any coordinated plan backed by the Government to grow our industry at home,” FSU national secretary Leon Carter said.

“Today’s report confirms the significant value that human capital brings to Australia through our stable financial sector.”

IFSA chief executive John Brogden said Australia stood a very real chance of becoming a leading financial services centre in the region if the recommendations of the forum were adopted.

“This report gives a very clear direction on how the road blocks can be cleared so Australia can build on the strength of the financial services sector and stake its claim as a leading financial services centre in the region — particularly in areas such as funds management,” he said. “The financial services sector is responsible for 7.5 per cent of Australia’s gross domestic product and employs 390,000 people. It makes sense to capitalise on this and on a much broader scale harness our skills, reputation for innovation and people talent to grow the export pie and, in doing so, our national economy.”

Brogden said the recommendations provide a practical blueprint that would significantly enhance exports of Australia’s financial services.

IFSA has also welcomed recommendations in the report that call for periodic reviews of the regulatory regime.

“Australia must continue to enjoy best practice regulation but it must allow for the changing nature of the marketplace, products and practices,” Brogden said.