John Brogden, CEO of the Financial Services Council has commented that as a result of the mining investment boom stagnating and the global economic growth moving towards Asia, the Australian financial services industry can replace mining as our next major export industry.
Speaking at the launch of the 13th annual FSC-DST CEO Survey with participating CEOs from a host of backgrounds including wealth industry executives Brogden has stated that the Australian financial services industry is ready to take a greater role in Australia’s export growth. “To do so, the financial services industry first needs to move on from domestic regulatory change to make the most of its potential as the largest sector in the Australian economy,” he has said.
The participating CEOs at the survey discussed what challenges their businesses faced while sharing their opinions on what opportunities they though were available to them and what were the factors holding back further growth in exports in the Asian region.
The outcome of the survey’s report highlighted that ‘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.”
The survey also indicated that the cost and volume of regulation is the primary concern. Poor investor confidence was the biggest obstacle facing the financial services sector in 2011 but by 2012 the cost and complexity of implementing regulatory reforms relating to financial advice and super administration has become the most important concern. Other barriers voiced included the high cost of operating in Australia, language and cultural barriers, lack of familiarity of Australia’s tax and regulatory systems and the cost of establishing new brands overseas.