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Overlapping, duplicative and inconsistent regulation creates inefficiencies and adds considerably to the cost of doing business in Australia, according to QBE LMI.
In its submission to the Financial System Inquiry, QBE said it was not in the nation's best interests for Australia to ‘lead the pack’ on regulation.
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“If we create a regulatory regime that is more onerous than the rest of the world, this will impact on our international competitiveness in a highly contested global market for investment,” the submission said.
“Australia's recent record as an early adopter of the new wave of regulation requires rethinking in this new environment,” it said.
QBE said that although the early adopter approach was commendable, it placed Australian businesses at a disadvantage.
“A number of our Asian neighbours, and in particular Singapore and Hong Kong, have public policies that are designed to encourage the financial services industry to locate regional and global head offices in their respective countries,” it said.
“These policies include tax incentives, relocation incentives and strong, stable regulatory environments designed to encourage the allocation of international capital to the respective country.
“These initiatives seem to have achieved some success and put Australia at a cost disadvantage in attracting international capital.”
Brokers recently offered mixed support for the federal government’s crackdown on red tape.
