Industry needs to tackle issues

With the end of the financial year fast approaching it is worth looking at some the hot issues that the IFSA membership is grappling with and which will become priorities in the second half of the calendar year.

With the end of the financial year fast approaching it is worth looking at some the hot issues that the IFSA membership is grappling with and which will become priorities in the second half of the calendar year.

The industry still awaits resolution of the legislation on collective investment vehicles (CIVs), super fund choice, and Financial Services Reform Bill. Implementation of the life insurance tax and GST regimes will continue to consume resources and the promulgation of e-commerce will continue at break neck speed.

Working in volatile and turbulent financial markets adds even more spice to industry’s busy agenda.

IFSA expects announcements on CIVs in late June or early July. These decisions have the potential to radically change retail and wholesale funds management products. There is a risk that if the new system is not forged properly, it will be costly, messy and result in unnecessary restructures for the industry.

IFSA has continued to advocate that the Government needs to establish a system of CIVs that very broadly encompasses current pooled investment initiatives. It needs to be remembered that tax reform was designed to deliver a more efficient and simpler tax system, not cause an industry to change fundamentally the nature and shape of its products.

Life insurance tax and, of course, the GST, are driving fundamental changes to the industry. Delegates to the IFSA 2000 conference in July will have a front row seat to hear the latest on the GST direct from Michael Carmody, ATO Commissioner.

Building a business to business ecommerce capability is rapidly becoming one of the most critical supply side factors. The SuperEC team (comprising IFSA, ATO, TAPS, ASFA) is making good progress towards the implementation of standards and processes for the electronic exchange of superannuation information.

The programme has recently completed its first phase of testing. Results so far from the ten industry participants involved in the first round testing are positive. So it’s full steam ahead, with the next round of testing set for July.

With these and other significant changes confronting the industry, what will drive businesses offering financial services to strive for superior performance? The latest IFSA key industry statistics survey explores the dimensions of performance, as it plumbs the IFSA membership on key strategic and tactical issues. The survey results, which will be launched at this year’s IFSA conference, will provide important insights and information on the industry.

Regulatory issues will gain an even stronger focus in the second half of this year. The Financial Services Reform Bill (CLERP6) will be the subject of scrutiny, this time by the parliamentary arm of government.

The new investor directed portfolio services arrangements will also be closer to introduction. International global regulatory developments are gaining momentum. No doubt the redoubtable ASIC chairman Alan Cameronwill expand on these issues when he gives his view at the forthcoming IFSA conference.

Richard Gilbert is the deputy chief executive officer of the Investment and Financial Services Association. Catch the Wave - IFSA Conference 2000 will be focusing on hot issues facing the industry from 18-20 July 2000 at the Melbourne Convention Centre.

Keynote speakers include: Don Hagans, Surfboard Financial; Michael Carmody, ATO commissioner; Andy Turner, head of manager research, Frank Russell; Alan Cameron, ASIC chairman; Steve Roach, chief economist, Morgan Stanley Dean Witter, US; Les Owen, chief executive, AXA Australia; and Stuart Leckie, chairman, Woodrow Milliman China; along with conference moderator Peter Couchman. For a copy of the conference program and registration form contact ph: 03-9819 3700 or register directly on line at www.meetingplanners.com.au