In its submission to the Financial System Inquiry, QBE said it is not in the nation’s best interests for Australia to ‘lead the pack’ on regulation.
“If we create a regulatory regime that is more onerous than the rest of the world, this will impact on our international competitiveness in a highly contested global market for investment,” the submission said.
“Australia’s recent record as an early adopter of the new wave of regulation requires rethinking in this new environment,” it said.
“Although the policy intent to participate and adopt consistent and appropriate international regulation is understandable, and indeed commendable, from a regulatory perspective, Australia’s recent experience with the early adoption of international regulatory regulation has operated to place Australian businesses at a disadvantage compared to our international peers.”
QBE stated that in order for it to stay domiciled in Australia, the financial system must provide a landscape that does not place it at a disadvantage to its international competitors.
“A number of our Asian neighbours, and in particular Singapore and Hong Kong, have public policies that are designed to encourage the financial services industry to locate regional and global head offices in their respective countries,” it said.
“These policies include tax incentives, relocation incentives and strong, stable regulatory environments designed to encourage the allocation of international capital to the respective country.
“These initiatives seem to have achieved some success and put Australia at a cost disadvantage in attracting international capital.”
While financial incentives may not be an option for Australia for budgetary reasons, QBE believes a more balanced regulatory environment is feasible.
