FSC pushes Johnson Report implementation

5 December 2013
| By Staff |
image
image
expand image

The potential export market for Australian financial services generating revenue from the management of overseas funds could inject as much as $700 million into the Australian economy each year, according to the Financial Services Council (FSC).

The 2013 FSC - Trust Company Australian Investment Managers Cross-Border Flows Report shows investment fund flows into Australian Managed Investment Trusts from offshore have increased 78 per cent since January 2010.

It said these funds flows generate fees, profit, employment and tax revenue for Australia, demonstrating the substantial and growing export potential of the funds management industry.

The report said the Asia Pacific region continues to be the biggest source of investment into Australian managed funds, with Australian funds management expertise being widely recognised across the region. The report highlights the significant potential of Asia as a source of foreign fund flows, currently accounting for 66 per cent of all fund flows, followed by Europe and the United Kingdom at 24 per cent.

FSC chief executive John Brogden said: "It is clear the Asia Pacific region holds large, untapped opportunities for the Australian financial services industry, with phenomenal potential for Asia to quickly increase its overall share of funds management activity. Australia needs to ensure it is positioned to capitalise on this".

"Asia has 60 per cent of the world's population, it has 12 per cent of the worldwide FUM market. In comparison, the US has 12 per cent of the world's population and has 57 per cent of FUM, while long term demographic trends favour further Asian investment into Australian funds," Brogden said.

He said that for this reason, the finalisation of the Investment Manager Regime and the Johnson Report recommendations were required for further growth.

"The Government has shown its commitment to the region with the signing of intent of agreement for the Asia Region Funds Passport in September. It is time to focus on completing the Johnson Report recommendations as a priority," Brogden said.

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year ago
Kevin Gorman

Super director remuneration ...

1 year ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year ago

The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation ...

13 hours ago

Super funds had a “tremendous month” in November, according to new data....

4 days 12 hours ago

Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion....

4 days 17 hours ago