Gilbert elected IIFA chairman

Richard Gilbert

Richard Gilbert was elected the inaugural chairman of the International Investment Funds Association (IIFA) at its 21st annual meeting held in Sydney after three days of talks.

Comprised of 76 international delegates representing 35 investment fund associations from markets with US$24.3 trillion in funds under management, the new body agreed to transition the IIFA to a new multi-member association in response to the impact of global forces on the mutual funds industry, formalising the group’s governance structure and funding arrangements.

IFSA chief executive officer and newly elected chairman of the IIFA, Richard Gilbert, restated the association’s commitment to advancing the interests of retail investors and encouraging compliance in the investment industry.

“An emerging global trend is the key and critical role of advice when purchasing products. We talked about the importance of consumer education and the criticality of advice, however, most of our discussions were around the product, what’s in the product and how to explain it to investors.”

Gilbert said that regulation was an important topic on the agenda, as well as disclosure requirements and investor documentation.

“We had the executive chair of the International Organisation of Securities Commissions (IOSCO), the world body of regulators, at the meeting, which was probably the most productive exchange with IOSCO we’ve ever had.

“We should never ignore the relationship with regulators. Although dealing with regulations can be costly, it can also be a competitive advantage for any company with good regulation because investors like good regulation.”

According to a statement released by IIFA members, the group agreed that the current International Financial Reporting Standards (IFRS) “do not presently provide a satisfactory basis for investment fund financial reporting” and that some of the provisions in place are “contrary to sound and long standing practises for meaningful investment fund reporting”.

According to Gilbert, IIFA delegates also discussed the effect of the sub-prime meltdown on the industry.

“Some of our members reported some difficulty with sub-prime fallout, as everyone knows Australia hasn’t been alone in that regard. However, overwhelmingly, it has not affected the overall position of mutual funds, which are still in good order and still have good levels of investor confidence,” Gilbert said.