Excessive and overly complex regulation is crippling productivity at a national and industry level, according to a survey report prepared by the Australian Financial Services Council-DST Global Solutions.

 

The FSC-DST Global Solutions CEO Report surveyed a number of the country’s leading CEOs in the $1.9 trillion wealth management industry.

 

The survey highlighted the high level of concern amongst financial services industry leaders that regulations do not pass a simple cost-benefit test and are thwarting productivity growth.

 

John Brogden, CEO of the Financial Services Council said: “The financial services sector invests across the Australian economy. Poor productivity effects the returns on our investments on behalf of Australian superannuation fund members”.

 

“Policies that impact the productivity of the financial services sector deliver few positive outcomes for consumers,” he said.

 

The key findings of the report include:

  • 69% of CEOs say Australia is not prepared for an ageing population
  • Low consumer confidence, too much regulation and poor investment returns and the main concerns of industry
  • 65% say government needs to be more certain about infrastructure funding commitments
  • 71% say they are not confident Australia has adequate private savings levels amid an ageing population
  • Reducing regulation, tax reform and more workplace flexibility are CEO’s top priorities to lift Australian productivity
  • 78% say the tax system is impeding productivity
  • 98% say the Australian tax system is more complex than it needs to be
  • 95% say infrastructure planning in Australia is insufficient
  •  82% say Australia is not prepared for rising health costs
  •  66% think Asia is an important future market for their business
  •  75 % think public pension in its current form is unsustainable