Legislative action needed on legacy products
The Federal Government needs to legislate to clear the way for financial services companies to more easily rationalise their product offerings.
That was the bottom line message delivered at last week’s Investment and Financial Services Association conference on the Gold Coast, with key industry executives claiming that today’s market leading offerings often become tomorrow’s legacy products.
Tower Australia Limited chief executive Jim Minto said that whatever solutions were found to the product rationalisation issue, it was important that they were applied fairly between generations of clients.
He said that the costs for companies needed to be reduced through movement to modern platforms and simplified processes and, to achieve this, some legislative support was needed with respect to the taxation implications.
Minto said that the cost-savings to companies would likely be passed through to consumers as they cancelled inflexible infrastructure costs for older products.
AUTHOR
Mike Taylor
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