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The Financial Services Institute of Australasia (Finsia) has launched a new professional designation for the financial services industry, one that could test the relevance of the Financial Planning Association’s Certified Financial Planner (CFP) mark.
Finsia chief Dr Martin Fahy said the financial services industry currently “lacks an appropriate professional credential”. Finsia is seeking to overturn that with its new Financial Services Professional (FSP) designation.
Finsia has more than 16,500 members and describes itself as the only professional association to cover the entire spectrum of the financial services industry, including wealth management, banking and finance and capital markets.
Around 14 per cent of Finsia’s membership are in private wealth management roles (including financial planning and stockbroking), while 7 per cent work in retail funds management and super and 10 per cent in wholesale funds management and super.
The initial deployment of Finsia’s FSP will be focused on the retail wealth management segment, and will be rolled out across other segments over the next five years.
Through the designation Finsia is seeking to encourage an industry-wide sense of perspective among its members.
“The reputation of our industry is shaped by the sum of its parts. Remuneration and other incentive structures that are established ‘upstream’ in the product design stage have impacts on the ‘downstream’ delivery of financial advice to retail clients. Likewise, the acuity of financial analysis conducted by investment banks influences how superannuation funds allocate assets,” Finsia’s launch paper states.
“Ethics and behaviours in the capital or wholesale markets have far-reaching impacts on retail investors and, likewise, the quality of financial advice delivered at the retail level has collateral impacts on the public’s perception of the industry overall.
Therefore, the FSP will require candidates to not only demonstrate significant capability within their specific field of practice, but also insight into the context and significance of their impact across the financial services value chain.”
Dr Fahey said Finsia had consulted widely with employers, regulators, government and practitioners in developing the new credential.
He said it would not “rely solely on education” but would offer a professional credential based on the “capability and experience of individuals as judged by their peers”.
Finsia said the credential would represent individuals’ high level problem-solving capabilities derived from relevant industry experience, “superior” technical knowledge and expertise as updated through professional development programs, as well as pointing to high ethical and professional standards and industry mentoring as key factors.
Dr Fahy said the FSP would “have a positive impact on changing recent examples of perceived poor conduct in the financial services industry, including poor financial advice, excessive remuneration and the fallout from managed investment schemes”.
