In addition, an individual that possesses a qualification from a higher learning institution which covers the core areas of knowledge and which is recognised by the Malaysian Financial Planning Council (MFPC) and Financial Planning Association of Malaysia (FPAM) can be a financial adviser’s representative without the need to take additional examinations. These new requirements have been implemented since 1 September 2014. The changes present new opportunities for AFA and its members to reach out to a broader talent pool of potential financial advisers, including young graduates, who can contribute to the growth and development of the industry. It is important to emphasise that these minimum qualifications are only a means, and not an end, to the provision of sound financial advice. At best, it is a starting point. The Bank expects both at the industry and firm levels that financial advisers are committed to maintaining an adequate level of general and specific knowledge and skills required to deliver sound financial advice. This means having in place arrangements and processes to ensure that new financial adviser representatives are properly supervised, and all representatives are committed to a programme of continuous learning and professional development. It also means subscribing to a strong code of professional ethics and conduct. This is the focus of the Financial Services Professional Board (FSPB) which was established recently with the support of the Bank and the Securities Commission.

The FSPB’s objective is to drive the development as well as the advocacy of professional standards, ethics and continuous professional development across the financial services industry. I would strongly urge the AFA to work together with the FSPB to develop and implement industry codes of conduct and ethics for its member firms and representatives which should express in very clear terms the professional responsibilities that a financial adviser must demonstrate towards its clients. This should be accompanied by an effective mechanism for investigating and addressing complaints on a breach of these responsibilities, and the ability to act against errant members in order to preserve the integrity of the profession. In line with efforts to ensure a high level of professional competence among financial advisers, the Bank also intends to require qualifying and continuing professional development programs for financial advisers to be formally accredited by the Finance Accreditation Agency (FAA). As you may already know, the FAA is an independent quality assurance and accreditation body for the financial services industry that was established by the Bank and the Securities Commission in 2012. It provides programme accreditation, individual accreditation and institutional accreditation services for learning initiatives within the financial services industry locally and internationally. Since its inception, FAA has registered 28 training providers and accredited 18 professional and academic learning programmes offered in Malaysia, the Middle East, Asia, and the United Kingdom, including those offered and recognised by highly reputable and established international professional bodies. FAA has also developed Continuous Professional Development Guidelines for the financial services industry.