The final terms of reference for the financial system inquiry released by the Australian Government confirm how important this review will be to improving the competitiveness of the Australian economy in the future, according to the Australian Private Equity and Venture Capital Association Limited (AVCAL).
“The government has clearly made this inquiry an urgent economic priority, which is absolutely the right thing to do,” says AVCAL’s chief executive officer Yasser El-Ansary.
“It’s been a long time since the last comprehensive review into financial services, and a lot has changed in the 15 or so years since the Wallis Inquiry, so it’s the right time to be looking at the entire system again.”
AVCAL, on behalf of its members in the private equity and venture capital industry in Australia – who manage more than AUD24bn in funds on behalf of investors – lodged a submission in response to the draft terms of reference supporting the broad direction of the inquiry.
In the submission, AVCAL recommended that targeted consultation should occur with industry and community stakeholders early in the work programme of the inquiry, to identify the key policy and regulatory barriers that impact on the efficient allocation of capital by Australia’s AUD1.6trn superannuation industry.
“The financial services industry is a vitally important part of the fabric of the Australian economy, which means there is a once-in-a-generation opportunity to identify how the industry can unlock more of its potential to support a stronger Australian business sector into the future.
“In a highly competitive global marketplace, we have to do everything we can to ensure we have the right policy and regulatory frameworks in place domestically to invest in Australian businesses,” says El-Ansary. “That’s why this inquiry is so important to our economic future.”
AVCAL will participate in the various consultation processes relating to the inquiry and engage with the Financial System Inquiry Panel and Secretariat over the coming months.
