Why did you decide to head ASFA?

I always liked a challenge. As a consultant working in the industry I was able to see how legislation had an impact on the industry. Regulation places an enormous amount of responsibility on trustees, advisers and fund managers. I thought it was now time that I gave back to the industry. To assist the superannuation industry to manage its obligations and drive the regulatory agenda is going to be very exciting.

What is your immediate challenge in the job?

To really understand what the members want. There will be challenges for the industry as a result of the Government's simple super initiatives and the anti-money laundering legislation. As an association, we have members that come from both the retail and industry superannuation sectors. Fundamentally we are still on the same page. We all want to do the best thing for our investors and our industries. Galvanising the industry is important because as an association we have the responsibility to be both proactive and responsive.

The remuneration of financial advice is still a contentious topic. How will you be approaching the issue?

The real issue is that people don't understand what they are paying for in advice. It is important that they know exactly what they are paying for including the administrative and investment costs. Getting that sort of clarity is going to be an important task for our industry. Another issue is to what extent people need advice. Some may prefer a holistic approach that includes the full range of advice. Others may just want simple advice such as what sort of insurance arrangements they should have.

It is up to the individual person to choose the advice model they want as long as they understand what they are paying for and how they are paying for it. Getting that sort of transparency in the industry is a goal for everyone. Going forward we will see the benefits from the financial literacy programs currently implemented in schools. The younger generation will be better informed about their finances and will have the ability to ask the right questions and push for greater disclosure.

Do you believe the level of education is high among financial planners?

Financial planners on the whole have invested a lot of time on education. More and more educators are now looking at the capabilities in the sector. Education is more than complying with the PS146 standard. This standard is about financial products and that is only a small part of advice. Really what we need to do is focus on educating planners so that they can help people understand how to manage their savings as well as grow and protect their wealth.

You were instrumental in implementing the Financial Services Reform Act. How was the experience?

It was fantastic. At that time ASIC already had the Managed Investments Act in place. We still had to coordinate a number of projects as we developed the legislation. Like most projects, people don't understand all the work that is done behind the scenes. It was a whole-of-organisation approach to developing the systems and building the electronic interfaces that would ensure the legislation could be implemented. We had to employ a number of graduates which meant there were human resources and training issues involved. It touched every aspect of the business.

The legislation also meant massive changes to the industry that ASIC had to cope with. At that time the industry had to deal with different regulatory regimes. The perception that things could be done overnight was difficult and managing people's expectations was important. Bringing the industry all together under one regulatory system was hard to do and something that should never be underestimated. Balancing the benefits of regulation with the impact on industry is something that all of us have had to manage.

How have you seen the industry change?

The financial services industry has matured quite quickly. There is now a real buzz. It is a wonderful industry with a wonderful reputation. There is an enormous amount of choice for investors. Compared to other industries we have made enormous strides. It is a confident market and it is very important that regulators continue to maintain their job of making sure markets are efficient and fair so that people can maintain their confidence in the industry.

Has superannuation emerged as a political issue?

There has been a meeting of the minds with both sides of the political fence. It's great to see both parties approaching superannuation as an important issue. Having said that, there is still a lot to do and adequacy will remain an important issue for us. The age pension is not enough for people to live on and everyone knows that. For many people superannuation remains their only source of wealth. We will be encouraging the message that it is important to put money into superannuation early on in a person's life.

Over time, raising the superannuation guarantee will be important. At the moment we will remain focused on soft compulsion. For many people, it is difficult to save for their future because they have immediate financial commitments such as raising a family and paying off their homes. Soft compulsion is one way of addressing this issue. We will continue to lobby both parties on the topic of adequacy.