IFAA News and Updates

PRESS RELEASE

Setting The Standard For Service Excellence In The IFA Industry: IFAA commissions the CCGFP to draw up "Corporate Practice Management Manual" for IFAs

6 December 2006 - The Independent Financial Advisors Association (IFAA) today announced that it has commissioned the Centre for Corporate Governance and Financial Policy (CCGFP) - an independent research institute of the School of Business at Hong Kong Baptist University - to develop a Corporate Practice Management Manual.The manual, expected to be published in the first quarter of 2007, will lay down “best practice” guidelines and recommendations for back office support for IFAA members.

“As the investing market in Hong Kong continues to mature, we feel that it is important for the IFA industry to meet the increasingly sophisticated needs of its customers. The Corporate Practice Management Manual will help IFAs define corporate practices that deliver the highest level of customer service to their clients,” stated Dr. Sidney Sze, Chairman for the IFAA.

In a survey conducted by the IFAA earlier this year, 76% of IFAs polled agreed that there was a lack of industry standards and best practices in Hong Kong today. The results of the survey also reinforced the role of the IFAA to lobby the interests of IFAs.

“The results from our survey signaled the need for an industry practice document. Competition in the industry is intense, particularly from banks and the independent sector cannot grow without practice standards. Once practice standards are established there will be an automatic expectation of all IFAs having to perform at least the standard. The Corporate Practice Management Manual seeks to address issues around corporate governance for the IFA industry not currently addressed anywhere,” explained Phil Neilson, Vice-Chairman for the IFAA.

The project will be led by Prof. Simon Ho, Director of the CCGFP and Dean for the School of Business at Baptist University. A keen industry observer, Professor Ho commented that the IFA industry in other parts of the world have established standards and guidelines for its practitioners.  

“Although these countries may have very different legal and economic environments from Hong Kong, their guidelines provide an excellent reference point which could be customized to the particular needs of the Hong Kong market. We will also take into account the “Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission” published by the Securities and Futures Commission, as well as existing corporate guidelines developed by some IFAA members as references for the development of the Corporate Practice Management Manual,” commented Professor Ho.

"The manual is not intended to be regulatory in nature but we hope and expect it to be adopted and accepted as the industry standard. In the end, the IFA industry stands to gain as investor confidence in the IFA profession grows, " explained Glenn Turner, Vice-Chairman for the IFAA.

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Karen Teoh
HALO ASSOCIATES (ASIA) LTD
Tel: +852 2115 8116,
Email: kteoh@haloassociates.com