to be given greater emphasis include effective communication and problem solving skills. the second priority is to identify and address the barriers that are preventing qualified parties from entering the industry, and the constraints that are limiting the ability of financial advisers to recommend the best solutions to their clients. we are close to making an announcement on revised minimum entry requirements for financial advisory business. the bank is also currently working on measures to create a more level playing field with respect to product offerings among the insurance intermediaries. the bank and the securities commission will also continue to coordinate closely in facilitating the ability of financial advisers and financial planners to provide advice on a broad range of financial solutions. in this respect, further enhancements are expected to be made to regulatory processes to improve efficiency and further ease the regulatory burden on the existing players. the third priority is to improve the alignment between the interests of consumers and financial advisers. we believe how incentives are structured have an important role in shaping the quality of advice that a consumer receives. while there are current requirements for potential conflicts to be clearly disclosed to consumers, the effect of such disclosure in alerting consumers to consider how such conflicts may affect any advice received, and to temper their decisions appropriately, may not be adequate to resolve the inherent conflicts that are created when a financial adviser is compensated by product providers. at the same bis central bankers ’ speeches time, the vast majority of malaysian consumers are not currently accustomed to paying directly for advice. in moving towards a better alignment of interests, there is an opportunity for fee - based business models to gain more traction, with financial advisers doing more – individually and collectively as an association – to explain how they add value through the advice that they give. the fourth priority is to intensify our review of the quality of advice provided by financial advisers to consumers through our supervisory work programme. this will contribute towards ensuring that financial advisers stay at the “ top of their game ” in terms of quality of advice, and that this is sustained through effective oversight arrangements within financial advisory firms to check that the interests of clients are being well - served at all times. at the industry level, the afa will have a key role in elevating the stature of the industry by coordinating initiatives to create greater awareness on the role of financial advisers, educate consumers on the importance of financial advice and to promote financial advisory services. afa can also play an important role in driving higher standards of professionalism in the industry through the development and implementation of industry codes of conduct and ethics that are

far ) and auditors. intermediaries now only bis central bankers ’ speeches need to notify the bank and comply with minimum qualification and suitability standards. while we believe this will help you run your businesses more efficiently, our focus on preserving a high level of integrity, competence and professionalism among intermediaries has not changed and we will, as we have demonstrated over the course of the year through stronger enforcement actions, apply more intrusive supervision if we find that intermediaries have not discharged their responsibilities as expected. a new category of financial adviser, that is the islamic financial adviser, was introduced under the islamic financial services act 2003. this is also aligned to the objective of encouraging takaful agents to upgrade themselves to be islamic financial advisers as the demand for financial advice grows. similar to specialised takaful brokers introduced in 2005, islamic financial advisers will be specialising in advising on family takaful and other shariahbased products. strategic priorities to further develop the financial advisory industry the bank has identified a number of strategic priorities to further develop the full potential of the financial advisory industry in delivering better outcomes to consumers and increasing the level of insurance penetration in malaysia. i should say that we benefitted significantly from our engagements with the industry on the direction that we intend to take and the key issues that need to be addressed moving forward. today, let me mention four key priorities. our first priority is to ensure that financial advisers are highly competent and professional when they provide advice. we understand from our engagements with afa that recruiting the right talent continues to be a major challenge given that financial advisory firms are competing with larger financial institutions for a limited pool of qualified individuals. the bank will continue to work in close collaboration with afa to increase the talent pool. this includes reviewing on a regular basis, the programmes and qualifications that meet the minimum standards for financial advisors and working with academia, training providers and accreditation bodies to broaden the qualifications recognized without compromising on quality. there is also a need to lift the competency requirements for financial advisers. the current emphasis has been largely on ensuring that financial advisers have sound product knowledge and the core competencies to understand and analyse their client ’ s needs. we believe there is a need for financial advisers to possess a larger body of financial and technical knowledge, that includes a deeper awareness of latest developments in the industry and opportunities available, and to be able to apply this knowledge to a client ’ s advantage. other core competencies that need