It also reflects the Bank’s desire to accelerate the development of the industry and promote its continuous renewal by making it easier for qualified individuals to offer their expertise and services, thereby expanding access for the public to financial advice while continuously raising the bar in innovative solutions for those seeking advice. We believe the new capital requirement strikes a better balance between the traits that we want to nurture within the industry and the financial commitment that remains important to ensure that those who we license are invested in the development and success of their firms. The Bank, in close consultation with AFA as well as the Malaysian Financial Planning Council (MFPC) and Financial Planning Association of Malaysia (FPAM), has also reviewed and agreed to an expanded list of minimum qualifications to become a financial adviser’s representative. The review identified four core areas of knowledge – namely financial  BIS central bankers’ speeches  1  planning, risk management, insurance planning and investment planning – which are considered essential to equip a financial adviser’s representative to provide proper advice on insurance or takaful solutions. These areas have been preserved under the expanded list of minimum qualifications, while allowing greater flexibility for other qualifications to be included. This change has halved the cost and time required for individuals to attain the qualification requirements.
We will continue to set a high bar on professional integrity and quality of advice, and we welcome your ideas and input on how we can continue to encourage firms to grow within the industry and bring financial advisory services to a wider spectrum of the public. The Association of Financial Advisers has a very important role in this process and has been a focal point for the Bank’s engagements with the industry. I look forward to your continued cooperation in achieving our shared goal of developing a financial advisory industry in Malaysia that truly serves to improve the well-being of financial consumers in this more challenging environment, and one that we can all be proud of. Thank you very much for your attention. 4  BIS central bankers’ speeches