Australia's financial services industry bosses believe excessive regulation in the industry is crippling the country's productivity growth, according to a new report released Monday by the Financial Services Council (FSC) and investment management service provider DST Global Solutions.

The FSC-DST Global Solutions CEO Report is based on an annual survey of Australia's leading CEOs in the 1.9 trillion AU dollar (1.99 trillion U.S. dollar) wealth management industry covering funds management, superannuation, life insurance, trustee companies and financial advice networks.

The CEO survey revealed a high level of concern among the industry leaders that the cost and complexity of regulations are preventing the financial services sector and the Australian economic growth.

In the report, CEOs of the Australian financial services industry have called for reducing regulation, comprehensive tax reform and more workplace flexibility.

"Policies that impact the productivity of the financial services sector deliver few positive outcomes for consumers," FSC Chief Executive John Brogden said in a statement. "Our CEOs believe the latest round of changes have taken the workplace relations agenda back 20 or 30 years and will do nothing to drive real productivity."

The Australian financial services industry employs 430,000 Australians, contributing 10.6 percent of the country's gross domestic product (GDP).

Brogden said for lifting the Australian economic growth rate, the government must reduce the stranglehold of regulation, introduce more flexibility into workplace relations and make our tax system more competitive.