Victoria, who has been a member of FINSIA and its predecessor organisation the Securities Institute since 1996, takes over from David Gall who is continuing in a high profile role as Interim Vice President.

The appointment, at the last board meeting on July 30, comes as part of a series of board level changes at the 133-year-old body.

Three new board directors appointed during May and June were also announced at their first official meeting.

They are: Westpac Chief Risk Officer David Stephen F FIN, National Australia Bank Executive General Manager, Growth Sector Cameron Fuller F FIN and Commonwealth Bank of Australia Executive General Manager, Regional and Agribusiness Banking Grant Cairns F FIN.

Victoria, a Senior Fellow, is currently the Independent Chair of OnePath Custodians, the ANZ Bank’s public offer retail superannuation fund and a non-executive director of ASX-listed URB Investments. She is also the Chair of NSW Treasury and a member of the ASIC Markets Disciplinary Panel.

She said: “I am honoured and privileged to be appointed President of FINSIA at this critical time in our industry and our organisation’s history, and hope I can provide the strong leadership that reflects the great legacy of our organisation and its members.

“My great aspiration is for FINSIA, and its members, to be leaders in deepening professionalism and pride in our industry.

“FINSIA, its members and staff, have a fabulous history of being leading advocates, thought leaders and drivers of professional standards. “At a time when the financial services industry is facing unprecedented change, with heightened community expectations, a challenging competitive environment and regulatory landscape, building professionalism across our industry and supporting our members to be the best they can is critical.

“Over the next year, that means FINSIA will continue to deliver and grow its program of market leading professional qualifications and programs that support our members and the industry to respond to this new environment.

“Importantly that also means working closely with industry leaders, regulators, ethics organisations to build professional standards, to become industry recognised standards of competence, conduct and ethical behaviour that apply across the industry, whether you’re a banker, a fund manager, or in fintech.”

Commenting on FINSIA’s commitment to gender diversity, she added: “FINSIA released its first Gender Divide Report in 2010 and I’m very proud that FINSIA has demonstrated a continued commitment to driving change in gender diversity in our industry.

“FINSIA’s core philosophy of transparency and consistency in reporting to drive change is at the heart of this report and its diversity campaign.

“Though some incremental change has occurred since 2010, what the 2019 Report shows is that significant change requires further significant effort at the organisational and system level, and by each and every individual in the industry.

“Gender diversity is a business problem which will deliver huge rewards if we get it right. And like every business problem it requires recognition, analysis and solutions that are measured and managed.

“FINSIA’s ongoing advocacy and thought leadership on gender diversity – challenging the norms of the past – will be critical to driving awareness and ensuring the industry meets this important challenge.”

Chris Whitehead

Chris Whitehead

FINSIA, the leading Australasian financial services professional body, has launched a new suite of ground-breaking interconnected professional qualifications focused on risk management and cyber-crime in conjunction with the Chartered Institute for Securities & Investments (CISI).

Global Financial Compliance, Risk in Financial Services, Managing Cyber Security, and Combatting Financial Crime professional qualifications are available online and have been reviewed by a group of senior practitioners led by FINSIA to ensure they are fit for purpose for the Australian industry.

Chris Whitehead, FINSIA CEO says, “The introduction of these qualifications to meet the needs of those in investment, funds management and stockbroking is the latest example of two years of work between the Chartered Institute of Securities and Investment and FINSIA.

“We have also partnered with Fitch Learning, part of the Fitch Group to assist candidates in studying and exam preparation.

“The aim is to upskill those in the investment space with a focus on risk management to minimise financial crime.

Australia clearly has had a problem with financial crime in all forms over the past few years with cyber-crime alone costing the economy $1bn a year according to the government.

“The scale of the problem shows there is a huge amount of work to be done. It is certainly an area that FINSIA believes financial professionals can develop new skills and expand their expertise.

“The course modules focus on the global reach and impact of financial crime.  They are portable as they are recognised around the world as they address international threats and ways to tackle them.”

Simon Culhane, CISI CEO says, “The CISI Is delighted to work with this leading professional body in Australian Financial Services to introduce these qualifications for the first time to the market.

“Professional bodies must ensure members have a level of knowledge and understanding of the changing face of cyber threats and financial crime with new technology being used in their industry.

Mr Culhane added, “The benefits of these programs are how easily they can enhance and be integrated into an organisations’ existing learning and development framework.”

Mr Andreas Karaiskos, Chief Executive Officer of Fitch Learning says, “We are happy to be partnering with FINSIA and continuing our long-standing relationship with the CISI.”

Whitehead added, “FINSIA will continue to build on its portfolio of professional qualifications and programs to support our objective of developing strong competency and high ethical standards in financial practitioners and promoting such standards in Australia.”

FINSIA and CISI have also worked together to launched ethics workshops and recently announced an online ethics test for financial services professionals.

Chris Whitehead

Consumer Research released by FINSIA uncovers a real power imbalance of financial knowledge and a high level of vulnerability which the industry must tackle to have any hope of restoring trust.

More than three quarters of consumers failed to grasp basic financial concepts like tax and inflation, yet almost two thirds are over confident in managing their own money.

Chris Whitehead, FINSIA CEO says, “It’s alarming that 94% of those consumers surveyed who said they were confident in their finances had poor financial habits or a misunderstanding of basic financial concepts.

“It is clear consumers overestimate their ability to understand their finances, which means it is imperative for financial practitioners to be professional and ethical, demonstrating the highest standards of behaviour.

“FINSIA’s forensic examination of the financial landscape after the Royal Commission has revealed an alarming lack of financial understanding and a lack of trust between consumers and banks.

“Now more than ever, it is crucial that bankers have the ability to make competent ethical decisions when helping to manage a customer’s financial security, especially as one third of those surveyed rely on banks for sound financial advice.  The fact that only19% of consumers surveyed trust their banks proves there is a widening trust gap that needs to be filled now.

“It really does show that customers are caught between a rock and a hard place – the fact that they don’t trust their banks or have the financial capability to manage their own money puts them in a vulnerable and susceptible position.”

The FINSIA Consumer Trust Survey showed that the already low level of trust dropped significantly by more than 50% (from 46% to19%) in the last 12 months, coinciding with the Royal Commission.

Whitehead says, “It is worrying to see the levels of consumer trust continuing to drop with more than half of them telling us they don’t believe the positive changes brought by the Royal Commission will last. Most believe banks will revert back to their old ways.

“That’s why FINSIA believes industry-wide professional standards of conduct are now more paramount than ever to drive good behaviour and reverse the consumer trust deficit.”

The survey revealed consumers are more likely to trust a bank with high professional standards, with this particularly prominent among young consumers.  Three quarters of those new customers aged under 24 say they want their bank to have professional standards for all staff.

The percentage of millennials that would swap banks to deal with more professionally qualified staff has risen from 19% to 24% in the past 12 months (an increase of almost a quarter).

The same sentiment is felt by the majority of customers up to the age of 44 whose spending and investing is at its peak.  The number of consumers who said they would swap (30%) was an even more significant increase from last year.

To ensure these standards are being adhered to and maintained, 81% of survey respondents believe it is important to have a professional body overseeing industry standards.

“The FINSIA Consumer Trust survey is yet more evidence for banks that they will win customers with better behaved and professionally qualified staff,” adds Whitehead.

* Results of FINSIA’s second annual consumer research conducted online of over 2000 respondents by the RFi Group between 8th February and 18th February 2019.  Respondents that took part are either main or joint decision makers when it comes to their banking.

*Professional qualifications are linked with a specific industry and are designed to help improve and develop relevant skills for a particular career path, these often involve an element of practical training.

Chris Whitehead

FINSIA CEO Chris Whitehead said “While it will be some time for all the ramifications of the Royal Commission recommendations to filter through, FINSIA is committed to helping implement reform in a timely and effective manner.

“It is clear he has concluded the core issues are:

• Cultural reform
• Stronger enforcement
• Eliminating conflicted remuneration models

“We recognise there will be significant changes in the way banks and financial services operate.

“Many of Commissioner Hayne’s recommendations highlighted how financial advice, mortgage broking, superannuation and banking as a whole needed to change.

“While he wasn’t as trenchant as in his interim report where he talked about short terms sales targets being driven by greed, he did conclude that there is a choice between being a salesperson or a professional – you cannot be both.

“I am certain I know where FINSIA members stand on that one, which is why we have the tools in the professional qualifications, CPD and a focus on instilling pride in individuals.

“Taking that further, we think it’s better to commit to do the right thing for customers – not just what’s legal.

“And while we will have to await the outcomes of Commissioner Hayne’s referrals to APRA and ASIC for legal action on misconduct, the government’s response to the in-depth inquiry has inone respect gone further.

“In its response, the government says it supports and encourages industry to develop voluntary codes that “go beyond the requirements in the law” and recognises the role for  “voluntary codes in harnessing the views and collective will of industry”. This in line with FINSIA’s philosophy – that we need industry wide action on individual standards as well institutional conduct reflected in the Banking Code of Practice.

“Moreover, when the government says it “is committed to the professionalisation of the financial advice industry” it is what we have been saying for the past 20 months.

“So we look forward to continue working with the all the key stakeholders across the industry.

“The commitment to professional excellence commenced by our founders 133 years ago – is ongoing and just as focused.”

Chris Whitehead

A new set of global standards is the way forward to change banking culture. Chris Whitehead, FINSIA CEO said: “As we wait for the final report of the Royal Commission, I have mixed feelings. We have had 12 months to come together to forge an industry-wide framework to restore trust in banking.

“However, whilst banks have been working through certain issues individually, we have not yet formulated an industry-wide response.

The origins of FINSIA go back to 1886 when, following a similar series of scandals, concerned bankers came together and agreed to share best practice, ensuring good banking conduct across the industry.

“We need to take the same approach again,” he added.

“Rather than get ‘on the front foot’ to drive change to culture industry-wide, we now wait for Commissioner Hayne’s recommendations.

“We have perhaps lost a key opportunity to influence these recommendations.

“However, I am in no doubt that post publication of the final report the government of the day will look for this industry to demonstrate ownership and commitment to reform.

“The results of waiting, runs the risks consumers will conclude the sector is being forced to respond to the issues of serious misconduct which have been highlighted during the inquiry and have been forced to take action.

“Voluntarily putting our house in order as quickly as possible will lead to a better result for customers and bankers.

“Driving consistent professional standards of conduct and competency are proven to be effective in restoring trust in a sector. It also gives individuals a sense of pride, promoting an aspirational attitude – which is a great incentive in itself.”

To this end, FINSIA is a founding member and active contributor to an important recent initiative – the Global Banking Education Standards Board. This brings together more than 25 banking institutes internationally to share high quality education and conduct standards and ongoing training for bankers. Ethical behaviour
is a high priority of this education and training and a standard for this has already been finalised.

There is now a new draft foundation standard for basic knowledge and competencies that should be required of all staff within a bank.

“We are recommending these standards to the industry as a proven contributor to improved trust and professional pride.

“As Australia is lagging behind some jurisdictions in building effective industry standards to stop misconduct and increase competency levels, the Australian sector should look abroad for ideas. We are not unique in facing these challenges.

“Unlike many other countries, Australia and New Zealand there is currently no requirement for bank staff to hold professional banking qualifications. Neither do key staff need to belong to a professional institute with an industry-wide code of conduct for individuals.

“That should not be the case. And that is why FINSIA has been leading the call for the establishment of Australian industry professional standards.

“As well as shared good conduct standards we need consistent competency requirements, including in the recognition and management of ethical issues.

“We need to ensure that bankers are sufficiently and broadly educated to be able to apply sound judgement, not just “tick procedural boxes” or rely on computer algorithms.”

Additionally, the need for staff continuing professional development – which is now mandatory at FINSIA – imposes an ongoing regime that makes sure skills are up to date and staff are regularly reviewing their ethical obligations. Currently banks have their own approaches to these challenges but with no common industry standard by which they can benchmark. There is also no mechanism for an individuals’ records to follow them if they move around the industry. It is another vital part of being a professional that should be introduced to the banking industry.

“Bankers need to emulate the exacting high standards demonstrated by those professionals – lawyers, pilots, and accountants – who have to keep up to date with their skill levels and demonstrate good conduct. That would certainly help eliminate the need for another Royal Commission in the future.

A slew of recent trust surveys indicates similar expectations towards ethical behaviour from customers.

“However, it’s also important to remember that ethical behaviour doesn’t mean meeting every demand customers make. If a banker has worked out they cannot afford the loan they want, the customer needs to be told, disappointing though that decision would be.

“It is also important to ensure customers don’t simply go to another bank or non-bank to circumvent proper and responsible lending. Banks that are strongly regulated through statute and improved self-regulation should not be undermined by a shadowy less aspirational sector.

“Standards that are worth reaching, combined with regulatory support that holds individuals and their employer accountable, will help rebuild the trust that is clearly lacking.

“The minimum we should expect from the sector is to move to world best practice.”

Chris Whitehead

FINSIA, the Financial Services Institute of Australasia, keeps pushing for professionalisation by advocating for uniform standards of conduct and competence for individuals in its second submission to Commissioner Hayne’s inquiry.

FINSIA set out its strong belief that professionalism is a major part of achieving the best outcome for the community in its first submission.  In its response to the Royal Commission (RC) Interim Report, FINSIA provides more detail on how to achieve this.

FINSIA CEO Chris Whitehead acknowledged that the RC interim report identified multiple instances of conduct that was unacceptable to the community and had been driven by the pursuit of financial gain over and above customer interest but had stopped short of hard recommendations.

“FINSIA started this journey towards increased professionalism well before the RC was announced.  With regular scandals impacting customer trust and staff morale we saw a clear need in the sector that had to be addressed. Uniform, basic standards of individual competence and conduct, overseen and enforced by a sector-led standards body, are fundamental to provide a level of trust and assurance to the community,” said Mr Whitehead.

“Regulation can only go so far, and we need to enable competent individuals to apply sound and ethical judgment to ensure customer interests are put first. We also need to empower individuals to push back if they are concerned that the actions requested of them are in breach of the code of individual conduct.

“The required competence includes ethical decision making which will allow individuals to feel confident and capable of applying judgement.

“Common standards of conduct and competence need to be embedded in each institution’s individual culture program to ensure they incorporate standards into day to day practice and behaviour.

“Having an independently-monitored, sector-led standards that will provide support empowers the individual to speak up if they see something is wrong in their institution.

“Institutions also need to focus on the importance of individual pride. People in financial services sector need to feel proud about what they are doing, and that pride ultimately motivates them to do the right thing,” says Mr Whitehead.

“FINSIA understands that the execution of these recommendations requires the support and commitment from the many diverse institutions across the sector to achieve genuine, sector-led reform.

FINSIA’s submission also emphasises the importance of partnering with regulators and government to address issues in a robust, systematic way.

“Systematic, well thought out reform must be supported by the right regulation, which is preferable and more effective to either a fragmented response from sector to sector or to regulation on its own,” Mr Whitehead concluded.

FINSIA submission key points

FINSIA’s submission builds on the recommendations of its initial submission to Commissioner Hayne and provides details in five key areas:

1. Uniform standards of conduct and competence for individuals for each type of financial services licence defined by a sector-based standards body, which monitors institutions and professional institutes for compliance

• provides an assurance of a minimum standard
• reduces difficulty and cost for consumers in assessing quality
• provides flexibility for the exercise of professional judgement

2. Execute similar to the model used in UK:

• three tiers of professional standards: senior executives (BEAR); roles that pose material risk of harm; virtually all other roles
• competence and conduct requirements aligned with level of responsibility at each tier

3. Monitoring and enforcement

• ensure consistent monitoring and enforcement of standards by relevant professional associations
• allows for fairness to practitioners
• enact severe consequences for misconduct to strongly deter non-adherence

4. Establish an annual certification process for roles that pose material risk of harm, requiring every practitioner to re-qualify annually for a valid Statement of Professional Standing by demonstrating compliance with current conduct and competency standards including completion of continuing professional development.

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Chris Whitehead

FINSIA, the Financial Services Institute of Australasia, keeps pushing for professionalisation by advocating for uniform standards of conduct and competence for individuals in its second submission to Commissioner Hayne’s inquiry.

FINSIA set out its strong belief that professionalism is a major part of achieving the best outcome for the community in its first submission.  In its response to the Royal Commission (RC) Interim Report, FINSIA provides more detail on how to achieve this.

FINSIA CEO Chris Whitehead acknowledged that the RC interim report identified multiple instances of conduct that was unacceptable to the community and had been driven by the pursuit of financial gain over and above customer interest but had stopped short of hard recommendations.

“FINSIA started this journey towards increased professionalism well before the RC was announced.  With regular scandals impacting customer trust and staff morale we saw a clear need in the sector that had to be addressed. Uniform, basic standards of individual competence and conduct, overseen and enforced by a sector-led standards body, are fundamental to provide a level of trust and assurance to the community,” said Mr Whitehead.

“Regulation can only go so far, and we need to enable competent individuals to apply sound and ethical judgment to ensure customer interests are put first. We also need to empower individuals to push back if they are concerned that the actions requested of them are in breach of the code of individual conduct.

“The required competence includes ethical decision making which will allow individuals to feel confident and capable of applying judgement.

“Common standards of conduct and competence need to be embedded in each institution’s individual culture program to ensure they incorporate standards into day to day practice and behaviour.

“Having an independently-monitored, sector-led standards that will provide support empowers the individual to speak up if they see something is wrong in their institution.

“Institutions also need to focus on the importance of individual pride. People in financial services sector need to feel proud about what they are doing, and that pride ultimately motivates them to do the right thing,” says Mr Whitehead.

“FINSIA understands that the execution of these recommendations requires the support and commitment from the many diverse institutions across the sector to achieve genuine, sector-led reform.

FINSIA’s submission also emphasises the importance of partnering with regulators and government to address issues in a robust, systematic way.

“Systematic, well thought out reform must be supported by the right regulation, which is preferable and more effective to either a fragmented response from sector to sector or to regulation on its own,” Mr Whitehead concluded.

FINSIA submission key points

FINSIA’s submission builds on the recommendations of its initial submission to Commissioner Hayne and provides details in five key areas:

1. Uniform standards of conduct and competence for individuals for each type of financial services licence defined by a sector-based standards body, which monitors institutions and professional institutes for compliance

• provides an assurance of a minimum standard
• reduces difficulty and cost for consumers in assessing quality
• provides flexibility for the exercise of professional judgement

2. Execute similar to the model used in UK:

• three tiers of professional standards: senior executives (BEAR); roles that pose material risk of harm; virtually all other roles
• competence and conduct requirements aligned with level of responsibility at each tier

3. Monitoring and enforcement

• ensure consistent monitoring and enforcement of standards by relevant professional associations
• allows for fairness to practitioners
• enact severe consequences for misconduct to strongly deter non-adherence

4. Establish an annual certification process for roles that pose material risk of harm, requiring every practitioner to re-qualify annually for a valid Statement of Professional Standing by demonstrating compliance with current conduct and competency standards including completion of continuing professional development.

The post FINSIA keeps pushing for professionalism in its submission to the Hayne Inquiry appeared first on AdviserVoice.

Chris Whitehead

FINSIA, the Financial Services Institute of Australasia, has launched the Chartered Banker, the industry’s internationally recognised gold standard in banking in Australia and New Zealand.

Chris Whitehead, FINSIA CEO says, “FINSIA is focused on raising standards of professionalism in Australasian Banking. We are excited to introduce the Chartered Banker designation, which recognises senior bankers committed to the highest professional standards of ethics and capability.

“There has never been a more important time or need for leaders within the Australasian financial services industry to commit to industry-wide professional qualifications in banking that place a strong emphasis on ethics and integrity.

“Many other countries expect or mandate that bank employees maintain formal banking qualifications, with an emphasis on ethical behaviours. FINSIA research indicates similar expectations from our customers. We need to respond if we are to enjoy the trust of the community. This approach, combined with regulatory support, holds individuals accountable, as well as their employers.” Mr Whitehead noted.

“There is no such requirement in Australia or New Zealand today for most roles in banks. FINSIA members support the view that poor individual behaviour or negligence deserves individual consequence, rather than damage the reputations of all.

“Being a Chartered Banker and meeting the required conduct and continuing professional development requirements future-proofs a practitioner’s career in the transformation of banking in a post Royal Commission and digital world.”

FINSIA is providing different pathways to reach the Chartered Banker designation based on candidates experience and existing qualifications.

The Chartered Banker designation sits at the top of a professional pathway that is practical and rigorous.

• The first stage, targeted across the organisation at those new to banking, is ‘Professional Banking Fundamentals’.
• Critical roles in advice and leadership are supported by the Certified Professional Banker qualifications. Initial modules include Business Banking and Retail Lending.

FINSIA has partnered with the Chartered Bankers Institute, the world’s longest standing professional banking institute to provide the new qualifications. Over 8000 individuals are now trusted Chartered Bankers globally.

Kylie Blundell, FINSIA Head of Standards & Education says, “After an extensive review of the Australian market, we identified the need for specific and relevant qualifications in banking that are developed by industry practitioners for industry practitioners.

“The benefits of these programs are how easily they can enhance and be integrated into a bank’s existing learning and development frameworks.

“FINSIA’s approach is to focus on the individuals in the financial services sector to improve their skills and expertise, standards and ethics and sense of duty to society. This model of individual accountability can restore community trust in banks.

“We are now seeing the first graduates of the Professional Banking Fundamentals course that was launched in May. This proves people in the industry want to be proud of their contribution to the community and to restore public trust.”

Chris Whitehead

FINSA has called for the fundamental purpose of superannuation to be legislated to protect the retirement interests of all working Australians. In its submission to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (RBC), FINSIA asserts that without political support for superannuation’s primary objective ‘to provide income in retirement to substitute or supplement the age pension’ the sector remains exposed to regulatory interventions and business practices not in the interests of beneficiaries.

FINSIA managing director and CEO Chris Whitehead believes this oversight is fundamental issue holding the industry back from reform. “Australia’s superannuation industry has reached maturity without a legislated purpose. It is in the interest of all working Australians that this Bill is passed and superannuation’s objective is prioritised to protect Australians retirement savings, ” said Mr Whitehead.

“Guided by the overall objective of providing income in retirement for fund members, it is incumbent on the industry to ensure there is a baseline of quality products available with adequate consumer protections in place for those who are disengaged.”

FINSIA’s submission makes a number of recommendations addressing the shortcomings identified recently by the Productivity Commission. These include the need for the boards and management of super funds to raise their professional standards via professional training and adhering to an industry wide standard of conduct. FINSIA asserts that super funds can only be effectively governed by directors able to demonstrate levels of conduct and competency consistent with the important role their oversight plays in delivering income to fund members. This includes possessing the skills to manage complex conflicts of interest as they arise.

FINSIA also addresses the overall lack of transparency in the superannuation industry including the need for more rigorous reporting to consumers on issues such as: the performance and ranking of superannuation funds; the appropriateness of additional services; the fees related to such services and the ability give consumers the option to opt-in; the use of members funds for activities such as marketing and sponsorship and closer examination of the benefits of such activities for members.

“There are a number of issues impeding the industry at present that have already been the subject of review by ASIC, APRA and the Productivity Commission. The Royal Commissions inquiries are an opportunity to synthesise this work and make recommendation to address ongoing issues such as conflicts of interest, improve disclosure to consumers and raise the professional standards of superannuation fund boards and management,” concluded Mr Whitehead.

FINSIA Submission Key Recommendations:

• That the primary objective for superannuation ‘to provide income in retirement to substitute or supplement the age pension’ be enshrined in legislation.
• That the directors of funds have sufficient skills and expertise to undertake their role. This includes have some level of professional training and being bound by standards of conduct. Funds also need to increase the diversity of their board members to better reflect the interests of members and current ‘self assessment’ processes should be made more robust and conducted via external review.
• Better management of potential conflicts of interest such as the issue of activist capture for fund boards and its impact on investment decisions and situations where asset consultant firms are also product producers for the same fund. Boards must demonstrate they have the ability, tools and expertise to address such conflicts where they arise.
• The use of member funds for activities such as marketing and sponsorship needs to be examined. Super funds may be required to keep the accounts of the management company and the trust separate with such marketing activities undertaken by the management company. Transparent reporting to members on the benefits of these activities should be required.
• Increased transparency of reporting to members on the performance and ranking of funds to enable consumers to make informed choices. Increased transparency of information on additional services to members, such as advice and insurance, including whether members are aware of these services, the charges associated and the ability to opt in if appropriate to a member’s circumstances.
• Greater clarity given to the role and responsibilities of the two key regulators in the superannuation sector, APRA and ASIC, including an examination of the rise of self-managed superannuation funds and role of their key regulator the ATO.

Chris Whitehead

FINSIA, the Financial Services Institute of Australasia, responds to the Royal Commission and sets out the fundamental steps required for an effective self-regulation model/framework to ensure a commitment to professionalism in the financial services industry.

FINSIA’s submission sets out three key recommendations to assist in achieving this:

1. Establish professional standards of conduct and competence for the industry.
2. Require completion of professional qualifications at defined roles and levels of seniority
3. Implement an annual certification process to provide a Statement of Professional Standing

Announcing the details of the submission and the annual certification process, Chris Whitehead, Chief Executive of FINSIA commented: “The establishment of a rigorous annual certification process is the best and simplest approach to achieving an effective self-regulated framework to improve industry professionalism focusing on raising standards of individual competency and conduct.”

“Annual certification for every practising individual needs to be supported by an industry-wide monitoring process, overseen by an independent standards body, and backed by regulation where required.”

Core to implementing the annual certification process is ensuring that professional membership bodies, an appointed independent standards body, such as the Professional Banking Council recommended in FINSIA’s submission, and regulators all work together to monitor standards and certify all individuals.

Mr Whitehead adds, “Any professional standards and annual certification process established by the industry must go meaningfully beyond regulatory minimums and be supported by organisational culture and strong disciplinary processes.”

“Ultimately support for professional aspiration and a professional culture will be far more successful than prescriptive regulation and a compliance mindset.”

“A regulatory driven approach runs the risk of encouraging organisational behaviour designed to meet basic regulatory compliance requirements rather than increased overall professionalism and better outcomes for customers.”

“FINSIA understands that the execution of these recommendations requires the support and commitment from the many diverse institutions across the industry to be genuine industry-led reform supported by the right regulation which is preferable and more effective to regulation on its own, Mr Whitehead concluded.

FINSIA’s Proposed Annual Certification Process

FINSIA’s proposed annual certification process holds the key to effective industry self-regulation. It sets out the mandated steps each individual working in the industry must adhere to in order to renew their membership with their relevant professional membership body each year and to continue as a practitioner.

An individual must:

• Confirm they have completed the required annual Professional Development hours (CPD Requirements).
• Confirm that they are qualified to perform the role they are currently employed in.
• Confirm, via independent audit that they, as a practitioner/adviser have no investigations open or pending against them or any current sanctions against them.

Meeting these requirements results in the confirmation and issue of an individual’s Statement of Professional Standing for the next 12 months. The details of all industry individuals who have met these requirements and have a current Statement of Professional Standing would be held in a publicly accessible Membership Register at the relevant professional membership body which also serves as a record of any practitioner that has sanctions or disciplinary actions against them by their professional membership body.