Policy publications
Set out below are current and archived policy publications released by Finsia.
Professionalism paper: A pledge of integrity: enhancing professionalism in the financial services industry
On 17 June 2010, Finsia launched a professional credential for the financial services industry, a world first that will deliver the next generation of finance leaders and help raise industry standards. For background information, see Finsia’s A pledge of integrity: enhancing professionals in the financial services industry professionalism paper.
Survey report: Significance of gender divide in financial services
A survey report Significance of gender divide in financial services was launched by Finsia on 8 June 2010. The Finsia member opinion poll of over 800 male and female finance industry professionals reveals that while many women working in Australia’s financial services industry feel they are overlooked, underpaid and severely under-represented at executive level, their male counterparts largely disagree.
The Finsia member survey garnered insights and experiences with regard to workplace culture, participation rates and job roles and revealed startlingly different views between male and female respondents concerning the representation and treatment of women within Australia’s financial services industry.
According to the research, a large proportion of females surveyed (85%) feel there is a gender divide within financial services, yet over half of all male respondents (58%) disagreed with this view.
The survey report forms the first stage of Finsia’s 2010 policy initiative – Bridging the gender divide in employment in the financial services industry.
Research paper: What lies ahead – consumer finance and the wealth divide
By all accounts the New Zealand economy has surpassed the vulnerable position it held during the height of the global financial crisis (GFC) in late 2008 and early 2009. The sudden collapse of finance companies, the significant loss incurred by investors and the notable rise in unemployment as a result of the GFC, left many New Zealanders grappling with increased levels of household debt, inadequate savings, and the prospect of an uncertain retirement.
In mid 2009, Finsia commissioned UMR Research to broadly explore the impact of the GFC on New Zealanders. This timeframe allowed an opportunity for the initial impact of and response to the GFC to take place and be observed.
This report examines these findings and integrates insights, observations and conclusions in key reports since released that shed light on these findings. The research undertaken by UMR addresses the following key issues:
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economic views and expectations
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the impact of the GFC on individuals retail borrowing and lending
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attitudes and behavior of retail investors
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the impact of the GFC on retirement planning
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Discussion paper: Is ‘cash’ cash? – Improving Retail Income Funds
Finsia’s discussion paper on retail income funds considers how the design and marketing of income fund products could be improved in the wake of the GFC, so as to benefit retail investors and enhance the future growth of the income fund sector.
The paper addresses three questions commonly asked by retail investors during the GFC:
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Why can’t I get my money back?
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Why didn’t ‘cash’ (for example) mean cash?
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Why have my returns fluctuated so much?
Finsia suggests these questions raise areas of concern for regulators and investment professionals about access to capital and the concept of liquidity; product names; and potential disincentives to investment.
The paper poses three broad discussion questions related to these areas of concern and suggests possible responses to them by way of a number of proposals. Comments on the discussion paper are due by 28 February 2010.
Survey report: Broadening horizons – investing in talent
A survey report Broadening horizons – investing in talent was formally launched at the inaugural Finsia Financial Services Conference on 28 October 2009. The Finsia/Chandler Macleod Group survey reveals that 75 per cent of respondents believe that organisations are using the economic downturn as justification for cutting staff in stagnant areas of their business, while at the same time recruiting to build teams in other
areas. The report provides an examination of the attitudes, expectations and employment experiences of Australian financial services professionals one year on from the immediate fallout of the Global Financial Crisis.
Research paper: Navigating Reform - Australia and the Global Financial Crisis
The Navigating Reform - Australia and the Global Financial Crisis research report is the collaborative work of Access Economics and Finsia. It re-assesses the conceptual foundations of Australia’s framework of financial regulations in light of the Global Financial Crisis (GFC). The Report is structured around the following four key questions that arise from Australia’s experience of the GFC.
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Why was Australia’s experience of the GFC comparatively benign?
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What have we learned about financial markets and their regulation?
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How might we change our regulatory arrangements in light of the GFC?
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Can Australia’s experience of the GFC be used to press our strengths as a regional financial centre?
Survey report - Financial services regulation in focus
While finance industry professionals concede the need for greater governance and enforcement, they largely agree that the underlying strength of Australia’s financial regulatory environment protected us from the worst of the Global Financial Crisis, and that the comparatively strong position of Australia’s finance sector should be used to the best advantage.
Research paper: Changing Tides - consumer finance and the generational wealth divide
What GFC? – Reality check for some Australians, most favour ‘she’ll be right’ view. Despite significant financial loss, high levels of financial stress and fears of inadequate retirement savings as a result of the global financial crisis (GFC), most Australians are not about to change their approach to borrowing and investment. That’s according to research released by Finsia on 27 August 2009.
This Finsia research, conducted in partnership with UMR Research*, examines the impact of the GFC on the generational wealth divide, providing fresh insights on a broad range of issues including household debt and savings levels, retirement planning and the consumer investment strategies of Australians.
For speaker presentations from the Consumer Finance Symposium please email policyteam@finsia.com.
Finsia and AICD release new profit reporting principles
Finsia and the Australian Institute of Company Directors (AICD) have produced a paper titled Underlying Profit: Principles for Reporting of Non-Statutory Information to encourage greater consistency and transparency in non-statutory profit reporting.
The principles establish a new benchmark for companies to clearly articulate the adjustments made in calculating an underlying profit figure.
The release of the Principles follows the consideration of feedback received in response to the Finsia / AICD Underlying Profit discussion paper issued in August 2008.
The initiative is not based on a view that statutory financial reporting is unimportant, incorrect or misleading. Rather, it reflects the present reality of widespread reporting of non-statutory financial results and the demand for greater consistency of underlying profit reporting – both within companies from one results announcement to the next, and across companies within the same industry.
Commentary on each of the principles and examples are provided in the publication.
Australia as a regional financial services hub: the talent dimension
In the first stage of this policy initiative, Finsia released findings from research conducted by Roy Morgan Research, Closing the talent gap: Building a global financial centre, indicating that Australia is not attracting enough skilled workers to the industry.
In the second stage of this policy initiative, Finsia engaged in qualitative research to deliver further insights to our members. Roy Morgan Research steered and informed discussion at Finsia's senior industry roundtable on 21 August 2008. The roundtable brought together senior HR executives, industry experts, key government contacts and senior Finsia Fellows to further examine the key policy challenges and opportunities facing the industry.
In late 2008 and in partnership with Roy Morgan Research, Finsia conducted a member poll on the impact of the current crisis on employment. In the poll survey, Australia as a financial services hub: the talent dimension (PDF 100KB), Finsia members indicated they believed that Australia's talent shortage has not disappeared and, when the markets recover from the
current crisis, the shortage will be greater than before.
Reconciling wealth with leverage
In August 2008, Finsia released findings from research conducted by Roy Morgan Research, Reconciling wealth with leverage: New challenges in consumer finance, examining the distribution of wealth among Australians in the 10-year period between 1998 and 2008. It provides preliminary insight into the key issues which have influenced the spiralling levels of household debt in
Australia.
In the long grass – leadership in adversity: Climate change, ESG and the finance industry
In May 2008, Finsia and Griffith University’s Sustainable Business Research Initiative released a paper titled Is the financial services industry ready for climate change?, which considers whether the Australian finance industry is ready for climate changes in a ‘post Kyoto' business environment.
On 9 October 2008, Finsia and Griffith University’s Sustainable Business Research Initiative released a paper titled The financial services industry beyond Kyoto: Capacity building for climate change, which informed the joint Finsia-Institute of Actuaries of Australia Low carbon economy: Risks and opportunities for the financial
services industry event.
On 7 May 2009, Finsia and Griffith University Business School released a report titled In the long grass – leadership in adversity: Climate change, ESG and the finance industry, the final stage results of the research project, which includes a projection of the potential impact of emissions pricing, reporting systems and opportunities for emission reduction on investment valuation, risk assessment and advisory services, and the identification of the research and delivery streams that will need to commence.
Finsia-Roy Morgan Poll: the New Zealand regulatory landscape
A Finsia/Roy Morgan Industry Opinion Poll of Finsia members was conducted in September 2008. The poll focused on the trans-Tasman agenda and recent regulatory developments within the New Zealand market. While the poll results suggest that recent changes to the law regarding financial products and providers will be effective in ensuring the New Zealand financial sector is consistent with international best-practice, New Zealand financial services professionals largely
believe that regulatory hurdles make it difficult for the sector when conducting business across the Tasman.
Publications archive
In addition, in recent years when developing policy, Finsia commissioned or wrote the following papers:
Sustaining our future: Investing for the long haul
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- Exposition paper (PDF 5.8MB) prepared by Professor Thomas Clarke and Ms Alice Klettner
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Saving the future: Can the under 40s afford to grow old
Takeovers review
Company reporting: the equity analyst's perspective
Recent submissions