It is an exciting time to be working in the financial services industry. Cognitive science, innovation and change are currently powerful forces in financial services, driving fundamental and permanent structural shifts in the industry and how it is regulated.
Financial services regulators are taking a central role in driving change. Through behavioural economics, ASIC continues to develop insights into how and why people behave the way they do, which is influencing regulation. They are also consulting industry participants on how review and remediation programs should operate.
The rapid pace of change can be seen everywhere. The implementation of recommendations from the Financial Services Inquiry continues to drive regulatory change. In this edition of The Wrap, we explore one of the recommendations, looking at improving key areas of how managed investment schemes are regulated.
The dispersion of technology into financial services is increasing exponentially. We are seeing first-hand how innovation and disruption are transforming financial services businesses. No players are immune, with FinTech start-ups through to large and mature institutions looking to harness the latest technological innovations. It is important this structural shift in the industry is embraced as consumers' needs change.
As the environment changes, financial regulators must ensure that the financial system can adapt in the face of innovation. Many of the laws and regulations which guide the industry were devised before current service and product delivery channels had been conceived.
In this edition of HDY's The Wrap we explore all these themes, and more.