In a submission to Treasury, the FSC said the draft terms of reference will allow for a genuine, open-ended examination of the financial system and welcomed a focus on international competitiveness and domestic efficiency, competition, sustainability and the cost of regulation.
In the letter, the FSC highlighted that the pool of funds under management by FSC members is larger than Australia’s GDP and the capitalisation of the ASX, as well as being the fourth largest pool of managed funds in the world.
“The draft terms of reference for the inquiry provide the opportunity to ensure Australia’s financial services industry is highly efficient and globally competitive,” FSC chief executive John Brogden said.
“We look forward to meeting with the panel and secretariat throughout 2014,” he added, alluding to the FSC’s development of a “considered, multi-faceted submission to the inquiry”.
“The Financial System Inquiry is timely as we are at the beginning of the next phase in the evolution of Australia’s financial services industry,” he said.
“As one of Australia’s major growth industries, financial services must be able to deliver more for all Australians and be more globally competitive.”
Mr Brogden’s comments echo those made last week after the December 4 release of the FSC and The Trust Company’s Australian Investment Managers Cross-Border Flows Report.
Responding to the report, Mr Brogden noted the “massive potential” of the Asia Pacific region for financial services export.
“It is clear the Asia Pacific region holds large, untapped opportunities for the Australian financial services industry, with phenomenal potential for Asia to quickly increase its overall share of funds management activity,” he said.
“Australia needs to ensure it is positioned to capitalise on this."
