Submission in response to recommendations of financial system inquiry final report

April 2015

COTA has historically taken an active interest in how well the financial system meets the needs of older people, for example as a long standing and active member of the ASIC Consumer Advisory Panel.

We provided submissions to the Financial System Inquiry in April 2014 and in response to the Financial System Inquiry Interim Report in August 2014.

In the latter submission COTA stated that overall we were pleased with the Interim Report. We agreed with the three principles underpinning the analysis that require the financial system to be efficient in its allocation of risk and resources, provide stability and reliability and be fair and accessible. We also agreed with the assessment that overall the Australian financial system is performing reasonably well and were supportive of concentrating the final recommendations on the areas needing most improvement.

On the release of the Final Report of the Financial Systems Inquiry in December 2014 COTA welcomed many of the recommendations as a positive step towards a system that will deliver better outcomes for older Australians and all consumers. We urged the Federal Government to adopt the recommendations of the Financial Systems Inquiry and take strong action for a more equitable and sustainable financial system in which consumers can have full confidence.

In particular COTA welcomed the Final Report focus on improving the superannuation and retirement income system and the beneficial recommendations for better regulation of financial products and advice.

Further, COTA supports the view expressed by Choice in its submission ("Creating a system with fairness at its core: implementing the Final Report of the Financial Systems Inquiry" March 2015) that there is a real potential to place consumer interests and fairness at the core of the financial system if particular Inquiry recommendations are implemented well. COTA endorses Choice's focus on recommendations relating to product design and marketing responsibilities of business; creating a better superannuation and retirement incomes system; removing conflicted remuneration from financial advice; and strengthening ASIC regulator powers.

COTA welcomes the opportunity to provide additional brief comment on the recommendations of the Final Report relating to consumer outcomes and superannuation and retirement incomes.

Download the full submission in response to recommendations of financial system inquiry final report

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