The financial services industry is facing a confluence of significant opportunities but also threats, flowing from a number of different sources.
Traditional customer bases are becoming more fragmented, competitors are entering markets by harnessing the power of digital delivery, new styles of digital service delivery are emerging and employees are becoming more mobile.
While the big ticket post GFC regulatory initiatives may now be largely implemented, a new era of regulatory scrutiny and a focus on culture is emerging. As ASIC zeros in on the cultural settings among the businesses it regulates, APRA is focussing on related party arrangements for insurance inside super.
There are positive moves to assist the financial services industry in the new digital operating environment. ASIC has taken steps to facilitate digital disclosure and more innovative product disclosure statements.
Treasury has also released an outline for a fast-tracked, equity-sourced crowd funding legislative framework, which will be a game changer for FinTech, start-ups and financial services intermediaries.
In the superannuation investment context, storm clouds on the economic horizon present both investment opportunities, as well as threats, both domestically and globally. Fund managers will also need to play to their strengths in this context but at least now have the benefit of a breakthrough on the tax front in the form of the investment manager regime. More work though needs to be done on tax change and a fast track towards a set of new collective investment vehicles.
In this edition of HDY's The Wrap we explore all these themes.