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Regulation holds Australia back from Asian opportunity
As the mining boom slows and the centre of global economic growth shifts to Asia, the financial services industry looks set to become Australia's next major export industry if it can move past regulatory change.
Speaking at the launch of the Financial Services Council (FSC) and DST CEO survey, FSC chief executive John Brogden said that in order to take advantage of Asia, Australia first needed to move on from the regulatory change that has bogged the industry down in recent times.
"Critically, the report reveals that the industry's CEOs see a role for government in promoting this expansion, but one that is a light-touch," he said.
"The industry does not seek subsidies or protection, but sees a role for the government in developing relationships, coordinating and branding the industry's approach to Asia and in making our tax system competitive in the region."
As part of the study, 55 of the FSC's 78 CEOs were surveyed on their views on opportunities in the Asian region, with 68 per cent expecting Asian export-driven revenue to account for 10 to 25 per cent of total revenue in the next two years.
DST regional head of business development — Australia and New Zealand Rhys Octigan, said systems, processes and infrastructure need to be embedded in the overall package to make it an attractive value proposition for other markets.
The development of technology infrastructure would provide a particularly strong foundation for growth in Asia and into other global markets, he said.
Brogden added that Australia has a world-leading financial system with robust governance. Integrating these strengths with strong processes and systems would make Australia an attractive prospect as an exporter of financial services.
In other survey findings, the CEOs flagged investment returns, consumer confidence and cost and volume of regulation as their top three concerns for funds management.
For the superannuation industry, regulation was also a concern, as well as the implementation of MySuper and investment returns.
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