Govt reviews creating 'impossible' demands

Multiple government industry reviews and consolidation in the financial advice and super fund industry is going to trigger impossible demands for change that the industry cannot meet, according to industry executives.

Speaking at the Financial Services Council annual conference, TAL managing director Jim Minto slammed the effects of the various government reviews of the industry and forced consolidation of super funds, saying they were creating demands that the industry simply could not meet.

“If you’re an administrator, you’d be looking at a potential pipeline of things that are just impossible to do,” he said.

Once the industry gains clarity on regulatory changes, the operational issues coming out of the regulation will become almost overwhelming for superannuation companies, Minto said.

Managing director of wealth at ANZ, John Van Der Wielen said companies that were flexible and could move quickly would adapt better to the new industry regulations.

The ‘winners’ in the industry would also be those who were most technologically advanced, he said. But, he added it was dangerous to try to predict what the legislation would look like before it was released.

“The Future of Financial Advice will make changes to the industry, but the bigger industry change will be the adaptability of companies to cope with technological change and more switched on consumers,” Van Der Wielen said.