The Finsider is our blog series providing insights into the Australian financial services landscape. We interview experts who will share their perspectives on ideas and issues facing the financial industry today and in the future.

Our special guest for this month is Blake Briggs. Blake became CEO of the Financial Services Council in January 2022 after joining the FSC as Deputy Chief Executive Officer in 2020, where he was responsible for policy and advocacy on behalf of FSC members. Blake has extensive experience in the financial services industry having previously worked for Westpac Group, as Head of Government Affairs for Wealth, and at the FSC as Senior Policy Manager for Superannuation. He has also worked as a policy adviser and industrial advocate for the Commonwealth Government and the NSW Business Chamber. Blake is also a member of the Board of Advice for the University of Sydney Business School's Discipline of Work and Organisational Studies. Blake holds a Juris Doctor from the University of New South Wales and a Bachelor in Commerce (liberal studies) from the University of Sydney.

What do you think are the most important issues facing financial services industry today?

The sector and the Government need to refocus on growth and innovation to enable the sector to deliver the best outcomes for its customers. I see firsthand through the Financial Services Council’s diverse membership how the regulatory pendulum has swung too far following the introduction of a wave of new regulation in recent years. In conjunction with structural changes in the funds management, advice and superannuation sectors, this has significantly increased industry costs and stifled product development.

Inroads on financial advice deregulation are positive, but new, rigid regulatory regimes such as the breach reporting framework and the Design and Distribution Obligations are stifling both innovation and investment in the funds management, superannuation and advice sectors.

The FSC is encouraging the major political parties to refocus on reforms that will support private sector led economic growth, through deregulating the financial services industry, one of the largest sectors of the domestic economy.

What’s been your biggest surprise since becoming CEO of the Financial Services Council?

The enormous untapped capacity for effective advocacy and policy leadership by the financial services industry, to enable it to efficiently serve its customers, when the sector is unified.

The history of financial services regulation demonstrates that when the sector is divided politicians can play sectors off against each other. Multiple financial advice bodies and superannuation entities have helped give rise to onerous financial advice laws that are only now being revisited, and layers of regulation on the superannuation sector have built up as the industry remained a partisan battleground.

Recent history has shown that as the sector has become more unified and aligned it can be a more effective advocate for sensible, evidence-based policy. The merger of the advice bodies has led to a more potent voice for the financial advice sector, and the FSC’s broadening membership in the not-for-profit superannuation sector, and amongst financial advice businesses and investment platforms, has strengthened our standing.

The opportunity is to successfully harness this alignment over the next term of parliament to deliver meaningful and enduring reform that allows the sector to deliver high quality products and services to its customers.

What do you see as the biggest opportunity for the wealth and superannuation industry?

Australia has an aging population. There are 2.5 million Australian set to retire over the next ten years, creating a growing need for financial advice solutions and innovative new investment products to help people enjoy a dignified retirement with their superannuation savings.

FSC research has also shown that the number of Australians with complex financial advice needs will grow by 70 per cent in 25 years – from 4.3 million to 7.2 million.

Policy making may feel piecemeal at times, however the financial advice reforms, emergence of new digital advice solutions and expansion of investment products catering to this cohort of consumers, in many ways are focused on meeting this opportunity.

The superannuation, funds and financial advice businesses that deliver the best products and services to those who are either approaching retirement or in retirement, are the ones that will be most successful over the next decade, much like those who led in accumulation phase over the last decade.

Australians are retiring with larger superannuation balances, with the average balance of a person of retirement age being $264,000, up 16 per cent since 2021. They are becoming less reliant on the aged pension and financial advice will be more important than ever to ensure people are maximising their wealth and are setting themselves up with a retirement solution that is right for them.

This shift has some incumbent players concerned, as they have traditionally relied on a disengaged membership. The industry needs to be cautious, however, that those who were most successful in accumulation may not have the infrastructure that suits a large cohort of highly engaged retired consumers that have personalised needs. The solution is an open and competitive market that encourages innovation and investment.

What is one change you would like to see happen in the financial services industry in the next 12 months?

The principles the Government has committed to - deregulation, expansion of low cost, simple advice solutions, and competitive neutrality between providers - are the right ones. Whilst we need to see how these translate into legislative drafting, the reform process is heading in the right direction.

Beyond advice reform, the FSC is advocating for a refocusing to a deregulation and growth agenda, to enable the financial services industry to operate more efficiently and allocate more capital to product innovation and growth opportunities.

I spoke earlier of the significant growth of retiring Australians and those with more complex advice needs, however, to have the investment products and advice strategies in place to cater to their needs over the next decade we need reform to be occurring now.

What advice would you give to those starting out their careers in the financial services industry?

Choose an area of rapid change or innovation and immerse yourself in that sector.

The best opportunity to learn about the sector is to participate in the process of change and renewal and it is this knowledge that will give you the experience and relationships that will set you up for senior roles in the future.