Axa Asia-Pacific Holdings chief executive Andrew Penn has called on the government to adopt a balanced approach to regulatory change within the financial services sector, and has disagreed with an aspect of the Cooper review.
"Whilst we understand the drivers for some of the regulatory changes being contemplated, it is also important to be aware that they can have unintended consequences," Penn said during a speech yesterday.
"While the industry will obviously respond to regulatory changes, one of the challenges they present for Australia and Australians is the ongoing uncertainty they create.
"It is important to balance the need for regulatory change with the need to provide a stable environment that supports confidence for all superannuation members, otherwise we will undermine private savings."
Penn also raised concerns about the Cooper review's recommendation to ban the holding of art within a self-managed superannuation fund (SMSF).
"I understand the logic behind the recommendation to ban the holding of art in SMSFs. However, I don't agree with it.
"We need to ensure that we continue to support our development culturally as well as economically. Australia has a talented but fragile visual arts sector and the benefits of protecting this far outweigh the rationale for this specific recommendation."
Notwithstanding the changes, the fundamental characteristics that will drive the financial service sector's growth have not changed, Penn said.
"It is and will remain one of the strongest growing industries, particularly in our part of the world," he said.
"Long-term demographics, in conjunction with the fall in investment markets and the short-term economic slowdown, means that the need for long-term savings has increased, not decreased."
His comments came a day after Axa said it expected profit after tax and non-recurring items of around $220 million for six months to June 2010.
