Transcript: A video case study on the Financial Services Council (FSC)
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>>Sally Loane: I’m Sally Loane, the Chief Executive Officer of the Financial Services Council. The Financial Services Council is Australia’s leading industry association representing the wealth management industry. This includes wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks, licensed trustee companies and public trustees.
The Financial Services Council is based in the heart of Sydney, Australia. We’re very close to the beautiful Sydney Harbour and we’re in the city’s central business district.
The Financial Services Council has more than 125 members who are responsible for investing more than $2.5 trillion on behalf of 11 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange. It’s the fourth largest pool of managed funds in the world.
With 60 per cent of the world’s population but only 12 per cent of worldwide funds under management, Asia has an enormous potential to increase its access to managed funds.
Australia’s just signed three free trade agreements with Korea, China and Japan, and this is incredibly important. It’s going to be even more important for the funds management industry.
Australia has a very well developed set of expertise. We’ve got some great history in funds management and the free trade agreements are going to provide some very good opportunities for Australian businesses for cross-border trade.
China’s progressive opening of its capital markets and large population provides a huge growth market for Australian businesses. Korea provides a specific opportunity through its significant sovereign wealth fund and government pension system. Japan has the largest pool of funds under management in Asia after Australia and a large government pension fund. The market provides a big opportunity for Australian fund managers.
Many of our members are part of global businesses and know firsthand the potential in these markets. These agreements promote open markets as they make services and investment more contestable between the parties, cover both services and investment activities, and adopt an approach that supports market openings.
Australia has the fourth largest pool of funds under management in the world, which is a large, highly developed and highly skilled industry. This is a significant comparative advantage for Australia.
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