The Financial Services Institute of Australasia (Finsia) has launched a new Financial Services Professional credential (FSP), a world first that will increase the standard of financial professionals.
“This (lack of professional credential) puts at risk, among other things, the management of the nation’s superannuation savings that is estimated to grow to A$5.3 trillion over the next 25 years.”
Finsia, with more than 16,500 members, is about to mark its 125th year since foundation, represents professionals in the entire financial services industry, including wealth management, banking and finance, and capital markets sectors.
Finsia’s Dr Fahy said Australia needs to capitalise on its strong position after navigating the global financial crisis and use the opportunity to lock in the professional talent that guided Australia’s financial institutions through such rough times.
“This opportunity cannot rely solely on education, rather, it requires a professional credential based on the capability and experience of individuals as judged by their peers,” Dr Fahy said.
“As the financial services industry undergoes considerable reform, there is a very real need to drive changes in behaviours and the conduct of financial services professionals in order to align the industry principles with regulatory change,” Dr Fahy said.
Dr Fahy believes the FSP will have a positive impact, with the industry on the back foot after recent examples of perceived poor conduct in the financial services industry, including: poor financial advice; excessive remuneration; and the fallout from managed investment schemes.
“Greater focus on professionalism will help drive improved business integrity and higher standards of conduct,” Dr Fahy said.
“The integration and industry-wide adoption of Finsia’s FSP will positively impact all stakeholders, employees, employers, regulators and the public.
“The new FSP is supportive of the new emerging regulatory framework in Australia and other countries and is supported by key financial services employers. The FSP is congruent with the future of the financial services industry.”