Australia Prepares For FIA Revolution As Regulation Prompts Insurance-Style Investing

Australians are sitting on a mountain of cash supercharged by some of the most generous government tax concessions in the world. While this large pool of money is designed to form the backbone of the country’s retirement system, it is largely locked up in products designed for rapid accumulation. The government wants that changed and is looking at ways to encourage product development similar to fixed-index annuities seen in other countries. The rules are a sharp shift in how Australians prepare for retirement and could see the local superannuation funds transform to offer more insurance related products, Daniel O’Leary reports.