The financial planning industry could grow into a significant export industry, Financial Services Minister Chris Bowen said.
"I actually have confidence in the skills and expertise of Australia's financial planners to not only provide high quality advice to Australian residents, but to develop as a significant potential export supplier," Bowen said at a post-budget breakfast organised by the Investment and Financial Services Association (IFSA) yesterday.
Bowen said the recent government reforms to financial advice were necessary if the advice sector was to develop as an export industry.
"The reforms we announced two weeks ago will, by introducing more transparency, trust and confidence for our financial planning industry, enable it to potentially be seen as world's best, with all the export opportunities that opens up," he said.
Bowen also said the integrity and reputation of Australia's advice sector was identified by the Johnson committee as pivotal if the country was to grow into a financial services hub.
"To this end, their report argued that resolving conflicts of interest in the financial planning industry is consistent with ensuring that the reputation of Australia's financial sector is maintained overseas - a prerequisite for greater international engagement," he said.
"I would argue very simply that it would be impossible to ask those in other countries to place their trust and confidence in our financial planning industry if Australians do not."
A number of recommendations from the Johnson report have been adopted by the government in its May budget.
The recommendations included the introduction of an investment management regime, the establishment of an online regulatory service and the establishment of an Asian funds management passport to facilitate cross-border recognition of funds management products.
