Lobby calls for better regulation through technology
The Association of Superannuation Funds of Australia (ASFA) says technology may be the best fix for Australian financial services.
AFSA says that if technology, neutrality and flexibility can be built into the local regulatory regime, the industry can focus on services to meet modern consumers’ demands.
The superannuation industry lobby made the call in its response to ASIC’s consultation on better ways to facilitate electronic financial services disclosures.
“The success of the myGov and myTax initiatives (over three million taxpayers signed up for myTax in the second half of 2014) reflects the desire of consumers to adopt new technologies and their comfort with them,” the ASFA response said.
“The Government's commitment and support for such an approach is reflected in its December 2014 announcement of the single touch payroll initiative which will be rolled out to employers in 2016.”
But AFSA fears that moving to new technologies would be a slow process, requiring providers to identify and determine how to mitigate the new risks that come with electronic disclosure.
ASFA said it backed ASIC’s recent announcement that it will work with AMP and Vanguard to develop an online “key facts” sheet and self-assessment guide for investor understanding.
“ASFA is strongly supportive of this initiative and in particular the commitment to working with consumers to gauge effectiveness,” it said.
“Consumer testing using robust methodologies is essential to ensure that any change deliver the expected benefits to both consumers and providers and that there is no unintended consequences (sic).”