AUSTRALIA PLANS TO OPEN DOOR TO ISLAMIC FINANCE

MELBOURNE, June 9 (Bernama) - The Australian Government has plans to lure
Islamic finance to Sydney.

In an interview with the Sydney Morning Herald, the newly-appointed Minister
for Financial Services, Superannuation and Corporate Law Chris Bowen said
Sydney was under-selling itself as a financial services hub for Asia.

"The majority of the world's Islamic population lives in Asia, and Singapore
and Kuala Lumpur are trying to corner this market for themselves and I think
Australia can play a role.

"Even if we only take a small percentage of the market it could generate a
lot of wealth and a lot of jobs in Australia," he said.

"This is just one example of the untapped opportunities out there for
Australia. We are very good at managing money, and in superannuation we have
the fourth-largest pool of funds under management in the world. We've
developed really good skills but we don't export those skills."

Bowen, 36, who was formerly the assistant treasurer, said he had concerns
about the commission-based system where financial advisers earn their money from
the products they recommend to customers.

"Where you have the issue of commissions you are always going to bring into
question the genuineness of the advice. There's always going to be a perceived
conflict, if not a real conflict," he said. "I think either way it's better to
avoid that conflict. I do think commissions are problematic."
-- BERNAMA