Australian financial services legislation is limiting business efficiency, has failed to keep pace with market developments and is distorting industry and consumer behaviour, says the Investment and Financial Services Association (IFSA).

The association’s new “headland statement” for the next three years calls for wide-ranging reforms across seven key areas – benchmarking Australian regulation, operational efficiency, financial projections, industry data, industry structure, regulator accountability and industry standards.

IFSA wants key reforms to the Corporations Act, including making electronic documents the default option and reviewing mandated disclosure regime and takeover threshold requirements.

CEO Richard Gilbert has called for a regulatory approach that “combines both substantive legislative requirements and industry self-regulation”.