Financial Services and Superannuation Minister Bill Shorten has predicted greater collaboration between Australia's retail fund and industry fund sectors over the next five years.
"I believe, perhaps controversially, that there will be greater convergence between the Hatfields and McCoys, of course, I mean the retail funds and the industry funds," Shorten told delegates at the 2012 Financial Services Council conference at the Gold Coast yesterday.
"We'll see financial planners putting industry funds on their preferred lists. We'll see retail funds to be able to get into marketplaces and workplaces they haven't previously been able to [reach].
"The supply of financial advice will significantly increase, one because accountants will take up a streamline licence and two we will codify financial planning and improve its status as a trusted profession."
He said the next five years could also allow for more transparency in fund selection and the government's Future of Financial Advice reforms would remove some of the conflicts that currently existed.
As well as sharing his thoughts on the future state of the country's financial sector, he also praised it for contributing to the country's "current relative success".
"You here today should be rightly proud of what you contribute to the ongoing story of Australia and you should be rightly pleased to some significant extent about the contribution you make to Australia's current, relative success," he said.
"Now I do not for one minute propose to say to you that we can afford to be complacent because we can't, and I'm not going to suggest to you that some of the big double-digit returns that some people were able to enjoy, particularly between 2000 and 2008, will be easily reclaimed."
However, he said fundamentally the reform changes the industry had equally fought and embraced had placed it in good stead for the future.
"There has been a lot of reform and these reforms will stand the test of time and strengthen the confidence . and operations of our financial services sector," he said.
"I submit to you that there is a lot to be done in the future and that we should be optimistic and positive about what the rest of the year will look like and what the next five years will look like."
