In an upcoming article for InvestorDaily's sister title, ifa magazine, Bianca Richardson, national client solutions manager at the Centrepoint Alliance – parent company of financial planning dealer group Professional Investment Services – argued that the financial services industry is suffering from “regulatory fatigue”.
“There has been great speculation about the scope and the focus of the ‘Son of Wallis’ inquiry, with various commentators presenting their views on what may and may not evolve, and what should and should not be considered, whilst others wait patiently on the fringe to see how this will all unfold,” Ms Richardson wrote.
“From a financial services perspective, naturally the sector has a vested interest in the scope, review and outcomes of the inquiry … To say that participants in the financial services industry are suffering from regulatory fatigue would not be an exaggeration, but a mere statement of fact.”
The “dust is still settling” on the FOFA reforms, with businesses currently engaged in ensuring they have compliant systems and processes in place, Ms Richardson said.
“Businesses are still implementing the various stages of the regulatory reforms, with some further FOFA changes expected by the new government,” she said.
Ms Richardson also called for the scope of the inquiry to include competition in the financial planning industry, to help reverse the trend of “consolidation” brought about by FOFA.
“The FOFA reforms have also driven substantial consolidation in the advice industry, resulting in the decline of advice provided through non-institutional advisers,” she said.
“When one considers that competition is a driver of productivity, economic growth and places downward pressure on prices, then one should also consider what outcomes may result from lessening competition in an already concentrated financial services industry.”
