The BFO unveils the 2020 cohort of Young Ambassadors.

The Banking and Finance Oath (The BFO) is proud to introduce the 2020 cohort of Young Ambassadors – a Program encouraging and supporting students, graduates and young people to contribute to a strong ethical foundation as they begin their careers in the banking and finance industry.

As a strong supporter of The BFO, the Governor of the Reserve Bank of Australia, Philip Lowe, has announced the 2020 cohort, acknowledging the importance of trust, integrity and ethics in fostering a positive culture within the industry.

“Finance is all about trust. When a deposit is placed in a bank, we trust it will be repaid. We also trust financial institutions to invest our hard-earned savings for us. And we trust them to provide us with sound advice. Without this trust, the financial system cannot operate properly and the economy cannot prosper. As the first line of The Banking and Finance Oath says: ‘Trust is the foundation of my profession’. The Young Ambassadors, as future leaders in the industry can help to rebuild trust in finance through the example they set” said Governor Lowe.

Recognising young people as the future leaders of the industry, Governor Lowe congratulated the seven successful candidates, who have demonstrated a strong commitment to ethics in banking and finance:

• Louisa Brown, Graduate, NAB
• David Goldfeld, Graduate, UBank
• Elle Griffin, Senior Analyst, CBA
• Michelle Lim, Consultant, KPMG
• Ricky Rangra, Student, The University of Sydney
• Anu Sharma, Graduate, NAB
• Sarah Valente, Graduate, ANZ

Chair of The BFO, Dr John Laker AO said, “In these unprecedented times, the banking and finance industry is playing a vital role in supporting the Australian community through hardship. Our industry may change after the COVID-19 pandemic is tamed but that is difficult to know. What we do know, though, is that our Young Ambassadors have the leadership qualities to help influence positive change and set an example of honesty and integrity for their peers”.

Recognising the Young Ambassador Program can reach only a limited amount of young people within tertiary institutions, The BFO is working with universities across Australia to introduce the Oath to young people in their banking and finance degrees. The aim of this collaboration is to support young people going into financial services who lead with their values, and work with their organisations to strengthen the ethical foundation of the industry.

Academic Director for Postgraduate Programs in the University of New South Wales Business School, Tracy Wilcox said, “We know that young people are more interested in living a life with purpose. And we are seeing the importance of trust and integrity in underpinning flourishing societies and economies. The BFO Young Ambassador Program enables emerging leaders in the banking and finance industry to make a positive difference in their field. I hope to see more and more of our students embrace the values and practices that The BFO embodies.”

The Young Ambassador Program offers the opportunity for young people to participate in a 12-month Program, including training and development, exposure to industry leaders, access to The BFO events and a chance to connect with an elder of the industry. The Program allows participants to harness the full potential of The BFO in their workplace. On completion of the Program the group is required to deliver a project that contributes to the ongoing conversation exploring ethics.

You can find out more about the Program, past projects and the 2020 Young Ambassadors on The BFO website.

The BFO presents ‘Ethics in Financial Services‘ podcast series

The project delivered by the 2019 Young Ambassadors saw the group produce a podcast series featuring interviews with senior members of the banking and financial services industry. Among those interviewed were Jillian Broadbent AC, member of the board of the Reserve Bank of Australia, Chair of the Clean Energy Finance Corporation and Chancellor of the University of Wollongong, and Stephen Dunne, former CEO of AMP Capital and first Chairman of The BFO Ltd.

In each interview, guests shared their story about an ethically challenging decision they were faced with during their career. Each episode presents a tangible case study from which other members of the industry can draw when facing their own ethical challenges.

You can listen to the podcast series ‘Ethics in financial services’ on The BFO website and other podcast platforms.

This podcast series will continue to provide past and present Young Ambassadors the opportunity to talk with leaders who are able to share challenging times. This will allow a continuous learning for future leaders.

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Stephen Dunne

CFA Societies Australia and CFA Institute today released policy recommendations in response to the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry in Australia.

The report, entitled “Professionalising Financial Advice”, was developed following extensive consultation with CFA Societies Australia Advocacy Council and other investment management industry leaders in collaboration with the global CFA Institute advocacy team. It proposes a series of policy reforms and structural changes that should run simultaneously to improve outcomes for customers accessing financial advice and rebuild trust in the industry.

Stephen Dunne, Chair of CFA Societies Australia Advocacy Council highlighted the significant opportunity to professionalise the industry in response to the findings of the Royal Banking Commission.

Dunne said: “The interests of firms were often put ahead of the interests of customers, leading to compromised outcomes for customers which severely diminished confidence in the investment industry and caused loss of trust in its professionals.

“We believe the future of the industry depends on policy reforms aimed at professionalising the industry regardless of which party is in government post 18 May. All industry stakeholders including the government and regulators must work closely to take decisive, visible and impactful actions that address these issues and rebuild investors’ trust,” added Dunne.

The policy recommendations report highlights that a genuine long-lasting impact cannot be achieved with a single solution. Rather, a series of policy reforms and changes should run simultaneously to improve outcomes for customers including strengthening best interest duty and ensuring appropriate consequences; outlawing conflicted remuneration practices; ensuring independence of advice; and importantly enhancing the professionalisation of the financial advice industry.

Dunne says: “We strongly recommend that the grandfathering of commissions be outlawed within next 12 months. This allows firms to take a short sunset period to adjust, and customers of financial advice firms to see actual changes taking place. Further transparency and disclosure need to be offered to customers around all fees and costs that they may incur including adviser remuneration and platform fees”.

For policy to deliver positive outcomes, the remuneration of both advisers and senior executives should be aligned to the interests of customers. This requires banning ‘product pushing’ and rewarding ethical practices and decision making.

CFA Societies Australia and CFA Institute also hold the view that the duty to act in clients’ best interest should be an imperative commitment made by all advisers.

Dunne stated that, “we believe policy needs to establish strong deterring consequences for those who act against the interests of customers, including suspension or banning from the industry. In the long term, the industry should aspire to a principles-based approach to managing adviser-customer relationships, and the adoption of the fiduciary duty standard should be considered”.

Lisa Carroll, CEO, CFA Societies Australia added, “we strongly believe that customers should be made aware of the ownership structure or exclusive product relationships that advisers may have with other organisations. At present, we think that a ban on vertical integration is not warranted however, it should remain under active consideration based on an assessment of the progress made”.

In the report, CFA Societies Australia and CFA Institute call for the set-up of an independent industry body that individually registers and monitors its professionals to ensure ongoing and long-term professionalism of the financial advice industry as a recognised profession.

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AMP Chief Executive Officer Craig Meller acknowledged Stephen’s substantial contribution to the company since joining AMP in 1994.

“Stephen has led AMP Capital through a period of considerable change in the sector both globally and domestically over the last ten years including the strategic alliance with Mitsubishi UFJ Trust and Banking Corporation (MUTB) in 2012 and the long relationship with China Life Insurance Company.

“AMP Capital has strong growth and investment returns driven by the internationalisation of the business with a reputation for its infrastructure and property investment capabilities that puts the customer at the centre of everything they do,” said Craig Meller.

A global search is underway to identify an executive to lead the specialist investment manager which manages over $160 billion across a range of asset classes including equities, fixed interest, property and infrastructure.

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Stephen Dunne

AMP Capital has announced changes to its leadership team to reflect the business’s updated growth strategy and to continue to meet the needs of clients around the world.

AMP Capital CEO Stephen Dunne said: “We are investing in the areas where we see the greatest opportunities to support our growth. The changes we’re making will ensure AMP Capital is aligned internally as well as to external market forces in order to deliver for our clients as we continue to expand and internationalise the business.”

A new role, Global Head of Infrastructure Equity, has been created to sharpen AMP Capital’s focus on the significant investment opportunities in the northern hemisphere following the launch of the global infrastructure platform while maintaining its leading role in the important home markets of Australia and New Zealand. Boe Pahari, currently Head of Infrastructure – Europe and the Americas, has been appointed to this role, which will be based in London, and will join the AMP Capital leadership team. Mr Pahari will also assume responsibility for the Australian and Indian infrastructure equity teams.

Andrew Jones, Global Head of Infrastructure Debt, has been promoted to the AMP Capital leadership team in recognition of the growth of the infrastructure debt business.

As a result of these changes, the Australia-based role of Global Head of Infrastructure, held by Scott Davies, will no longer exist and Mr Davies will leave AMP Capital by the end of the year.

Mr Dunne said: “AMP Capital is one of the world’s most experienced global infrastructure managers and has been at the forefront of the development of infrastructure as an asset class in Australia and beyond. The decision to split the infrastructure debt and equity teams and have a member of the leadership team based in London reflects AMP Capital’s commitment to our infrastructure business and recognises its importance as part of our global offering to clients.

“We’re seeing great interest in the recently-launched global infrastructure platform and have raised more than US$1 billion for the Infrastructure Debt Fund II during the past year, which showcases the compelling investment opportunities across the asset class. These changes will ensure the strong team we have in place in Sydney, New Delhi, London and New York is well placed to harness these opportunities in both high-growth and mature markets on behalf of our clients.”

AMP Capital will also streamline the end-to-end client proposition across its key markets. As part of this move, Anthony Fasso, AMP Capital Director, International, will head up the global product team while continuing to focus on international opportunities. Sharon Davis, who is currently AMP Capital’s Chief Operating Officer, will become Director, Australia and New Zealand and take on responsibility for the Australian client teams, New Zealand operations and a new global marketing and communications capability. Ms Davis will retain responsibility for the investment services areas.

In addition, Executive General Counsel Prue Milne has decided to take a career break after 16 years of service and will step down in February 2015. Yen Hui Tie, currently AMP Capital Senior Legal Counsel, will take on the role of AMP Capital Head of Legal.

All new members of the AMP Capital leadership team will report directly to Stephen Dunne.

Mr Dunne said: “I would like to thank Scott and Prue for their significant contribution to the business. Under Scott’s guidance, the combined infrastructure equity and debt team has become one of the most active infrastructure management teams globally. Prue’s outstanding work, often behind the scenes, has resulted in the successful completion of a number of reform programs and major transactions. I wish them both well for the future.”

– See more at: http://media.amp.com.au/phoenix.zhtml?c=219073&p=irol-newsArticle&ID=1993120#sthash.bp2vyk5M.dpuf

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Mr Meller said the new structure and team reflects AMP’s plans to build a leaner, more efficient and increasingly customer-driven organisation.

The new structure brings together the senior leaders collectively responsible for delivering customer solutions across the organisation, as part of the one senior leadership team.

“I’m excited to announce the team that will take AMP forward as we enter the next phase of our evolution.  This new simpler structure will allow us to sharpen our focus on customers and respond to emerging opportunities more rapidly,” Mr Meller said.

The new Group Leadership Team is comprised of the following executives:

Lee Barnett – Chief Information Officer, responsible for AMP’s information technology function, workspace and sourcing.

Pauline Blight-Johnston – Group Executive Insurance and Superannuation, responsible for AMP’s risk insurance, retail superannuation, investment and pensions, and platforms business portfolios.

Rob Caprioli – Group Executive Advice and Banking, responsible for AMP’s advice, banking and corporate superannuation business portfolios.

Stephen Dunne – Managing Director AMP Capital, responsible for AMP’s investment management, investment performance and Asian growth strategy portfolios.

Gordon Lefevre – Chief Financial Officer, responsible for AMP’s finance function, effective 1 March 2014.

Matthew Percival – Group Executive Public Affairs and Chief of Staff, responsible for AMP’s public affairs function and the Office of the CEO.

Paul Sainsbury – Chief Customer Officer, responsible for AMP’s customer and self-managed superannuation business portfolios.

Brian Salter – General Counsel, responsible for AMP’s legal and governance functions.

Wendy Thorpe – Group Executive Operations, responsible for AMP’s customer service, contact centres, underwriting and claims operations portfolios.

Fiona Wardlaw – Group Executive People and Culture, responsible for AMP’s human resources function.

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