Concerns around industry disclosure on fees as well as policy uncertainty are issues both sides of politics agree need to be addressed by the next elected Australian government.
On Friday, Labor minister and parliamentary secretary for disabilities and children’s services, Bill Shorten, and federal Liberal member for Higgins, Kelly O’Dwyer, outlined the industry concerns they believe need addressing.
“We need to maintain certainty. You’re going through a period of great change and I think we need to give people a period of policy certainty so they are not always trying to work out what the latest changes mean,” Shorten told delegates at last week’s Financial Services Council conference in Melbourne.
“Beyond that, for me I’m interested in how we continually provide the best information for consumers and how we also keep fees as low as possible.
“I think that [product transparency] is a very productive area to look at – I just think regulation for regulation’s sake can lead to unintended consequences.
“This industry should always be leading on better products than being forced into it by a government reacting to legitimate concerns from consumers and their representatives.”
Despite skirting over questions on when the Coalition would reveal its financial services policy in more detail, O’Dwyer said under an Abbott government, the industry would experience improvements rather than “wholesale” changes.
“We have an unparalleled opportunity in Australia to grow the economic pie and to be a world-beating financial services hub, but to do that we need a government that can set aside the spin and understand what drove Australia’s exceptionalism compared to rest of the developed world during the GFC [global financial crisis],” she said.
“Without that understanding, a Gillard government would invariably introduce regulation where regulation is not required.”
O’Dwyer said the Abbott government is sympathetic to various recommendations in the Ripoll, Henry and Cooper reports, stating there is room to build on Australia’s existing system.
“Clearly, though, we need to pursue reforms carefully with full information and in partnership with industry, rather than simply rush at it because we are in the midst of an election,” she said.
