The Australian Government should work with the industry to "develop a strategic plan to develop the financial services sector in Australia," the main foreign bank lobby proposes.The Australian Financial Markets Association, in its submission to the Financial System Inquiry, said "there is a strong desire for policy that provides the level of stability, consistency and certainty required for market participants to make decisions about the long term commitment of capital and other resources to their business in Australia."The Government should have in place long term, integrated policy settings that will give business certainty for planning and facilitate the further development of the financial system. "The main theme of AFMA's submission was to promote "market-based solutions …. industry best practice guidance and self-regulation."It said it was "often market intermediaries, not the 'beneficiaries' of the regulation, who bear much of the cost recovery burden."AFMA said this was "the case with cost recovery for AUSTRAC and market supervision by ASIC."AFMA also pushed tax reform to ensure "taxation treatment of returns from different assets classes would be consistent."It also wants an old favourite, the abolition of interest withholding tax from financial institutions.