Leaders of Australia’s $1.9 trillion wealth management industry said on Monday that regulatory reforms are hindering their productivity, adding that many of the reforms do not even pass a cost-benefit analysis.
A survey conducted by Australia’s Financial Services Council focused on key issues that affect firms in the wealth management industry, Financial Standard reports.
John Brogden, the CEO of the FSC, which represents Australia’s retail and wholesale fund management business, retail super funds, financial advice networks and life insurers, said that the CEOs of the industry noted that the “pendulum has swung too far” and that regulation is crippling innovation.
“Policies that impact the productivity of the financial services sector deliver few positive outcomes for consumers,” Brogden said, according to Financial Standard. “The financial services sector invests across the Australian economy. Poor productivity affects the returns on our investments on behalf of Australian superannuation funds members.”
Brogden said that the survey indicated that many of the industry’s top executives were unsure whether regulator reforms could make financial advice more accessible to Australians, as the upfront fees set to replace commissions could push away potential clients.
Additionally, Brogden said that while regulatory reform may be able to achieve its goal of increased transparency, it may be unable to achieve its second goal of making financial advice more accessible for Australians, Financial Standard reports.