Regulation tops IFSA’s agenda

The regulatory environment, as it is evolving within the Australian financial services sector, is expected to be a focal point of theInvestment and Financial Services Association(IFSA) Illuminate conference, running from August 13-15 in Cairns.

The emphasis on the regulatory environment is underscored by the presence of representatives from both the major financial services regulatory bodies, as well as the Commonwealth Treasury and the Australian Competition and Consumer Commission (ACCC).

The executive director, markets group within Treasury, Jim Murphy, will address the conference on the topic: ‘Shaping Regulation to Maximise Investor Return.’ This will cover the broad gamut of evolving regulation with respect to financial services, including amendments to the Financial Services Reform Amendment (FSRA) Bill, details of which were released in late June.

He will also traverse the recent discussion paper reviewing financial sector levies. That discussion paper, released in April, looks at the entire funding equation for prudential regulation.

The regulatory theme established by Murphy will be followed by theAustralian Securities and Investments Commission(ASIC) director, FSR licensing and business operations, Pauline Vamos, who will address the conference on the issue of FSRA in her presentation: ‘Licensing — Industry Directions.’

Vamos’ address deals with ASIC’s ongoing approach to FSR licensing and transitional arrangements. It comes at the same time as ASIC focuses on a number of regulatory issues directly impacting on the financial services sector, including its recently released position paper on the regulation of mutual risk products, along with its position on the use of past performance results when advertising investment products.

The conference will also be addressed by theAustralian Prudential Regulation Authority(APRA) executive general manager, policy, research and consulting, Charles Littrell, who will focus on current super and regulation issues.

Littrell’s address will further develop his recent themes on the safety of superannuation and changes to the regulatory environment.

He is expected to discuss the changes likely to flow from the Commonwealth’s legislative changes to the superannuation regime and the manner in which these will be interpreted by the prudential watchdog.

Also on the speakers’ list is ACCC general manager, mergers and asset sales, Mark Pearson.

Pearson’s address, ‘Is the Industry Still Competitive?’, will be one of the first by a senior ACCC official following the departure of the long-serving chairman of the competition watchdog, Professor Allan Fels, and is expected to examine the shake-out that has occurred in the insurance sector over the past four years and the implications for policy moving forward.

Discussing the broad range of issues to be canvassed at the conference, IFSA chief executive Richard Gilbert says while the superannuation industry might be showing signs of recovery, the players still need to tread with caution.

With the entire financial industry in its most difficult position since the 1970s, he believes it is now vital to adopt futuristic thinking to take the market into positive territory.

In addition to the senior representatives from the major regulators, the IFSA conference this year boasts more speakers from the ranks of chief executives than in other years.

“The industry has been through torrid times and is in need of strong leadership. It is names such as those presenting who are best placed to drive progress,” Gilbert says.