Australia's Financial Services Bosses Upbeat On Economic Outlook, Fret About Regulations

Tom Burroughes

26 July 2017

Chief executives of Australian financial services firms are optimistic about their organisations’ growth prospects but worry about rising regulatory costs and about the task of building trust, according to analysis by .

The organisations polled Australian-based CEOs representing the insurance, superannuation, funds and wealth management industries and associated sectors.

Some 82 per cent of the CEOs polled are feeling confident of growth over next 24 months, with nearly half (47 per cent) nominating building or restoring trust as critical to their agenda over the same period. Issues around regulation also ranked highly on CEO agendas.

A perceived increasing regulatory compliance burden was nominated as the top area of concern facing the industry, ahead of investment market performance, and low economic growth. Some 40 per cent of the CEOs surveyed said the rapidly changing regulatory environment is increasing the risk of their organisation not complying with relevant laws and regulations.

“It’s fantastic to see there is optimism around growth, but there’s also a clear sense among CEOs that there are significant headwinds to be navigated in order to genuinely deliver on this positive sentiment, particularly around regulation, trust, and attracting talent” PwC Australia’s Insurance Leader, Scott Fergusson, said.

Nearly three-quarters (71 per cent) of respondents said trust is critical or important to their organisation’s future success, ranking trust among the five biggest issues facing the industry.