Product rationalisation on legislative agenda
Nick Sherry
The Minister for Superannuation and Corporate Law, Senator Nick Sherry, has struck a note with the Investment and Financial Services Association (IFSA) by flagging the development of a mechanism to facilitate product rationalisation.
The Government’s intention to devise such a mechanism was flagged by Sherry during an address to an IFSA luncheon in Sydney yesterday.
Welcoming the minister’s comments, IFSA chief executive Richard Gilbert said the financial services industry had been calling for the development of legislative mechanisms that would better facilitate the rationalisation of legacy products.
“We are delighted that the minister has this squarely on his agenda,” he said.
Gilbert said IFSA would like to see a regime that allowed customers in outdated and uneconomic products to be able to move on a no detriment basis to products with greater flexibility and modern features.
He said that a successful outcome from the point of view of IFSA would deliver benefits to both companies and investors through risk and cost reduction.
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