Regulation of the financial services industry needs to undergo a mass ‘pruning exercise’ to ensure over-regulation does not become an issue, according to Shadow Treasurer Malcolm Turnbull.
“We must look at whether the purposes for regulations are still relevant and appropriate, and if they are, how they can be achieved with less red tape,” Turnbull said.
Acknowledging that industry reviews were underway, Turnbull said there was inaction by the coalition, and input from those within the industry would go a long way.
“Politicians are not experts on super or insurance or in tax and we have to be generalists by definition, and so we really need the input and help from the specialists [yourselves],” he said.
“There are some areas, particularly in your [the financial planning] field, which are extremely arcane to the average person… and that includes the average member of parliament.
“It is important for the industry to stay in touch with senators and members of parliament on both sides of the political divide.
“The more informed we are, the better a job we can do to represent you.”
More compliance for the industry would raise the cost of service, which would mean the industry would only be able to advise people with lots of money, Turnbull said.
