FSC supports EU trade deal negotiations
The Financial Services Council (FSC) has welcomed the opening of negotiations with the Council of the European Union aimed at creating an Australia-EU free trade agreement.
The deal would be expected to benefit the Australian financial services industry as it would lower barriers for Australian firms in accessing the EU economy.
At the same time, the FSC stressed that Australia would need to put in place a Double Tax Agreement (DTA) with Luxembourg to help its consumers avoid missing out on substantial gains from any free trade agreement with the EU.
Luxembourg is said to be the second largest funds industry in the world.
FSC chief executive, Sally Loane said that so far Australian investment managers had limited ability to expand in the region.
“Currently only 3.6 per cent of Australian funds under management are sourced from offshore. To ensure the benefits of this agreement are maximised for Australia, we need to ensure our tax and regulatory settings are competitive with Europe, otherwise we will see Australia lose out,” she said.
The FSC also said it would urge the Government to take the necessary steps and negotiate these agreements, with an active role played by both Treasury and the Australian Securities and Investments Commission (ASIC).
AUTHOR
Oksana Patron
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
