Australia-China agreement to boost SMSF industry exports
The Free Trade Agreement established between China and Australia will provide Australia’s SMSF industry with enormous export opportunity, according to the SMSF Professionals' Association of Australia (SPAA).
SPAA chief executive Andrea Slattery said the financial services sector was one of the main beneficiaries of the agreement between the two nations.
Ms Slattery said China is part of a broader opportunity offered by Asia, with the region's middle class expected to grow to three billion people between now and 2050 and to hold more than half the world’s financial assets.
“Australia has set the pace in the region with its superannuation system, and [with] the advice industries that have grown in parallel with it, as recognised by the Mercer Global Pension Index that recently ranked Australia’s system as the second best in the world,” she said.
“This level of expertise and knowledge is appreciated in China and other Asian countries and we now have the opportunity to reap the benefits as they look to replicate our system as they come to grips with similar issues linked to an ageing population.”
However, Ms Slattery warned that while there is unprecedented opportunity in China, the superannuation and financial services industries will face strong competition in these markets.
“It will be imperative for these industries to offer world best practices to convert this opportunity,” she said.
“This can only be achieved by all industry participants maintaining a focus on increased professionalism and higher educational standards across both the superannuation and financial services sectors.”