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With the new ASIC chair, James Shipton, recently highlighting the importance of professionalism and trust for the financial services industry, an expert has revealed the best ways to ensure your business is on the right track.
Responding to Shipton’s comments at the annual ASIC form last week, Sheila Baker, managing director of Gold Seal, said that talk of raising professional standards is “easy” but solutions can be more difficult.
“As he [Shipton] said himself, it’s not a matter that can be legislated overnight. Doing it and, importantly, demonstrating it, are different things,” Baker said.
“Mr. Shipton’s comments have heightened the awareness of financial services issues to the public. That means the whole issue of trust has the potential to be exploited on social media and across the news – locally, nationally and internationally.
“Internationally it echoes the sentiments coming out of the London Market and the upward trend in the industry toward professionalism and integrity.”
Baker said that she believes financial services firms should take advantage of every opportunity to show their professionalism to clients.
“Make sure your business practices are up to standard,” Baker said. “Never waste an opportunity to show that you are doing the right thing and have a holistic approach to a robust governance framework.”
Baker noted several key steps that Gold Seal recommends to take “an holistic approach to governance” for a financial services business.
Firstly, owners and principles should ensure that business practices are managed to a high standard, such as: risk management frameworks, IT, records management and business continuity.
Documented business processes should also be put in place and people management practices should be checked to ensure they are in “good order” ranging from “employment agreements, performance management, through to adequate training and qualifications,” Baker continued. Adherence to financial management standards should also be “evident.”
“Sometimes, it really isn’t the easiest thing to do, but I’d rather that than be used as an example by a Royal Commission – or the court of public opinion,” Baker said
