Australia’s Financial Services Sector – Snapshot, Trends and our Work

Sector snapshot

• Australia is recognised for its innovative, profitable, competitive and sophisticated financial services sector.
• Its domestic financial sector regulation is recognised as world’s best practice, providing a secure and transparent base for expansion within the Asia-Pacific region.
• Australia has one of the largest pools of contestable funds under management globally, approximately A$1.3 trillion (US$850 billion).
• Australia has mutual recognition agreements with key international markets including the United States, Hong Kong and New Zealand and is an approved destination for investment funds under China’s Qualified Domestic Institutional Investor program.

Trends

• Continued entry of new international financial services players into the domestic market seeking to establish new funds targeted at Australian and/or New Zealand investors.
• The ongoing rise of ‘bespoke’ products to address particular client needs or market conditions.
• Consolidation of players in the market, particularly in the superannuation/pensions area.
• Increased disruption due to the accelerating rate of technological change is impacting the ways financial services are structured, delivered and consumed in Australia and the Asia-Pacific region. Examples include new FinTech market entrants, use of mobile devices, online lending, credit ratings, robo-advice, blockchain, fraud detection and data analytics.

Hive Legal’s work in the sector

• Advising Equity Trustees on the sale of its retail distribution business, the establishment of a range of innovative managed investment products and on its appointment as responsible entity of managed investment schemes managed by leading global investment managers.
• Advising a major financial institution on aspects of the appointment of a new global custodian and foreign securities lending agent
• Advising a major superannuation fund on its technological solution to transmit contributions and data between the fund and sponsoring employers.
• Assisting an early stage ‘FinTech’ company in successfully negotiating a key partnership agreement with one of Australia’s largest life insurers.

If you would like further information or have any questions, please contact us.