In this regard, it is heartening to note that the Association already requires its members to abide by the code of ethics for the financial sector issued by the Financial Services Professional Board. Going forward, the Association may consider refining this code of 2/5  BIS central bankers' speeches  ethics to better reflect the specificities of the financial advisory industry. For improved efficacy, the code should also be complemented, if I may suggest, by rigorous monitoring and strong enforcement. To this end, I would like to suggest the Association spearhead the development of an oversight programme aimed at identifying and responding to misconduct risks in a timely manner. Perspectives from members could contribute towards crafting more creative, practical and effective monitoring mechanisms, such as members’ compliance report cards. To further elevate the professionalism of financial advisers, Bank Negara Malaysia is currently reviewing the fit and proper requirements. These requirements will specify, among others, the factors to be observed in the assessment and appointment of key responsible persons, such as members of the Board and CEOs of the financial advisers, and financial advisers’ representatives. Adoption of these standards we hope will help to strengthen the credibility of the profession. Another aspect that is closely linked to professionalism is transparency. It is for this reason that the Bank has introduced additional disclosure requirements through the LIFE framework. These disclosures are intended to ensure that appropriate and fair advice is given to consumers who purchase insurance. Mandatory sales illustrations have also been enhanced.

These applications are using a “matchmaking concept” to link customers to trustworthy financial advisers, based on their unique investing needs and personality. In addition, different pricing strategies could also be explored. These should be commensurate with the profile of a prospective Gen Y customer. For example, fees can be adjusted in proportion to a younger customer’s income level, rather than linked to assets under management, as is typically the case now. Flat fees or hourly charges may also be considered for customers with smaller account balances. Conclusion I have spoken at length about the key tenets of a trusted adviser today, but I also understand that transforming the profession into where it needs to be in the future is not something that can happen overnight. Like any other transformation, the effort will require meticulous planning, strategy and sheer determination through the many changes to come. Professionalism, independence and adaptability will all be hard-won victories. While Bank Negara Malaysia stands ready to support initiatives in this direction, it is the industry that must ultimately collaborate to create the business models and value propositions that will define the financial advisory services of the future. The Association serves as an excellent platform for such collaboration, with the potential participation of 618 registered financial advisers’ representatives to date. I welcome the innovations that are to come from the Association and the members.