Australia: Financial Services Council draws up its wishlist for the next Parliament – Asia Insurance Review

The Financial Services Council (FSC) has announced its policy priorities for the next parliament ahead of the Federal Election that has to be held no later than 21 May 2022.

Acting CEO of the FSC, Blake Briggs, said the report, covering superannuation, life insurance, funds management and financial advice, presents opportunities that should be considered by both major parties in the lead up to the election.

“All sides of politics have an opportunity to use the upcoming election to think about how the financial services sector can support economic growth. Financial services is worth A$161bn ($117.4bn) annually to the national economy and meets the needs of millions of consumers.

“Recent years have been challenging for Australians and the national economy. To put these challenges in the past, governments should continue to focus on policies that promote growth, boost confidence and encourage business investment.”

The FSC policy priorities report includes proposals to:

Maintain existing tax rules for superannuation, allow the Superannuation Guarantee to rise to 12% and reduce unnecessarily regulatory costs imposed on superannuation funds;

Increase access to life insurance by reforming how health services to consumers are provided and retaining the Life Insurance Framework;

Reduce the cost of advice by abolishing the safe harbour steps for complying with the Best Interests Duty and simplifying the documentation requirements of the advice process;

Reform funds management tax settings to promote Australia as a financial centre; and

Finalise implementation of a product modernisation regime for life insurance and managed funds.

The FSC has over 100 members representing Australia’s retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies.