AIC chief to head FINSIA

The outgoing head of the Australian Investment Council has urged Canberra to remove roadblocks to institutional investing in the private markets.

The AIC's long-standing chief executive, Yasser El-Ansary, has resigned to take up the role of chief executive of the Financial Services Institute of Australasia.

Yasser El-Ansary will replace Chris Whitehead who will step down as head of FINSIA at the end of April 2022.

After eight years the helm of the private capital lobby group, El-Ansary said he had fulfilled the task set for him by the board - for the private capital industry to be more visible and have a stronger voice and to improve the relationship between the allocators and managers of private capital.

"That relationship wasn't as strong as it needed to be," he said.

"Also, fund managers were not doing a good job of relating to the super funds - they did not understand the challenges confronted by super funds in allocating to private capital strategies."

Things have improved in the last eight years but he argued there is more to be done.

Aside from lower corporate taxes and higher R&D incentives, El-Ansary stated there needs to be greater collaboration between the government and regulators to remove roadblocks to institutional investing in the private markets.

"The superannuation system still places too much weight and emphasis on fees and costs - rather than after-fee returns - although the situation is better now than what it was before the Your Future Your Super reforms.

"These have made some inroads into rewarding super funds for after-fee performance, rather than simply ranking funds based on who offers low fees and low costs.

"The new regulations should improve domestic support of the private capital industry, which is critically important alongside the flow of investment capital from offshore markets into Australia."

El-Ansary said private markets were a powerhouse of the economy - the significant rise in funds under management and invested capital seen over the past few years is testament to the growth of the sector and the significant contribution that it makes,

AIC chair Alicia Gregory - who is also Future Fund's head of private equity - said El-Ansary had done a "terrific job" as chief executive.

He has been instrumental in designing and implementing front-line industry leadership positions on a wide range of important policy and regulatory issues such as the foreign investment regime; RG97 and the 'Your Future, Your Super' reforms; tax reforms, and the introduction of the National Innovation and Science Agenda," she said.

"Australia's private capital industry is a critically important part of the national economy because it's responsible for catalysing investment into businesses that will create new industries and new jobs of the future."

El-Ansary will remain with the AIC for the next few months while they search for his replacement.

The outgoing chief executive said it was the right time for him to step aside and enable a new leader to help the local private capital investment industry make an even bigger contribution to the economy and community in the years ahead.

Separately, FINSIA President, Victoria Weekes, expressed her thanks to Whitehead for his outstanding leadership of FINSIA.

"Chris made a huge impact on the professionalisation of financial services by successfully introducing new professional education options in banking and securities through international partnerships, strengthening continuing professional development, and leading a focus on professional standards.

"As a result of Chris' leadership, being a graduate or member of FINSIA is once again seen for its true high value, and there has been a substantial increase in member engagement".

Whitehead joined FINSIA in September 2016.