IFSA: Getting its priorities right

The various committees within the Investment and Financial Services Association (IFSA) have outlined their policy priorities for the 2009-10 financial year. The following represents the policy agenda that will be pursued by the industry organisation over the next 12 months.

Financial advisory network committee

• Gain maximum value from current research results and the Financial Advisory Network Compliance survey to promote key messages with the Government and community in support of the value of FANs and the value of advice.

• Ongoing engagement with the Parliamentary Joint Committee inquiry into financial products and services, and respond, as appropriate, to the findings and recommendations of the inquiry.

• Ongoing engagement with the Financial Planning Association and Association of Financial Advisers on matters concerning planner/adviser remuneration, the advice process, conflicts of interest and professional standards.

• Ongoing engagement with Australian Securities and Investments Commission’s advice stakeholder team, especially on matters concerning quality and accessible financial advice.

• Consider further research opportunities to measure the value of FANs and the value of advice for Australian families and small businesses.

• Examine the potential for improved data collection by FANs to support the industry’s position on value of FANs and value of advice.

Regulatory affairs committee

• Product rationalisation — implementation through legislation.

• Shorter disclosure documents — delivered by fine tuning the current Incorporation by Reference (IBR) Regulations and the formulation of an IFSA Guidance Note on utilising IBR.

• Electronic disclosure — extension of scope for electronic delivery beyond merely annual reports to all regulated disclosure documents for companies, registered schemes, disclosing entities and superannuation funds.

• Industry data — a review of the Australian Prudential Regulation Authority’s (APRA’s) data collection practices and examination of aggregation issues in the superannuation statistics through a data user group established by APRA.

Global markets

• Assisting the Australian Securities and Investments Commission (ASIC) and the Minister for Superannuation and Corporate Law in their efforts to achieve mutual recognition of cross-border offerings of collective investment schemes between Singapore and Australia.

• Continuing to support the work of the Australian Financial Centre Forum in its mission to promote Australia as a regional financial services centre.

• Steer the development of a financial services brand and promotion strategy designed to increase the level of awareness of the Australian financial services industry offshore and attract increased capital flows into Australia.

• Aiming to take a leadership role in managing investor, media and stakeholder expectations in the global financial crisis. Industry analysis and research will be used as the basis for delivering identified key messages.

• Creating greater engagement in superannuation by developing initiatives that focus on awareness and education among consumers.

• Improving financial understanding to support consumer confidence by working with ASIC to implement its financial literacy objectives.

• Promoting the importance of accurate industry statistics by monitoring and encouraging industry regulators to produce and release accurate data to the public.

• Development and release of an industry research report examining liquidity in financial services and recommending best practice principles.

• Elevate industry awareness and prevention capabilities on fraud and security, including stakeholder forums and the examination/release of an industry questionnaire to acquire information regarding industry fraud and security risk and understanding the industry’s requirements with regards to fraud and fraud control guidelines or standards.

• Promote the distribution of electronic documents, including the compilation of an IFSA benchmarking study to ascertain the level of automation (use of electronic processing/commerce) within key operational processes across the wealth management industry.

• Positive outcomes from Australia’s Future Tax System Review (Henry Review) pertaining to superannuation, the taxation of capital and the abolition of inefficient state taxes.

• Instilling confidence in superannuation.

• Government endorsement of a managed investment tax regime for Australia following the Board of Tax review into the issue.

• Consider the implications of the United Nations sanctions regime for the wealth management sector and the need for industry guidance.

• Maintain a watching brief as New Zealand progresses draft legislation for its anti-money laundering regime.

• Respond to Tranche 2 reforms (draft legislation expected at the end of 2009) as appropriate.

• Consider the need for industry guidance on categories of overseas certifiers for overseas customers.

• Raise the profile of the protection gap, focusing on the public awareness of the issue and addressing the barriers to making low cost cover more accessible.

• Work with the Australian Defence Force (ADF) regarding a partnership approach to facilitate the improvement of cover for ADF Reservists.

Standards oversight and disciplinary committee

• Continue to improve the compliance process and outcomes, with members putting greater emphasis on embedding the IFSA standards and guidance notes into their operational processes.
• Continue to promote the role of industry standards as part of the regulatory toolkit and review the existing standards and guidance notes with a view to introducing new ones when appropriate.

• Development of an electronic proxy voting system, including a comprehensive policy paper and stakeholder round table to drive key outcomes.
• Greater engagement with the Government and participation in climate change/environmental and sustainability-related issues on investment portfolios and IFSA member activities.