Environment Scan Financial Services Industry

Transcription

1 Environment Scan 2013

2 Acknowledgements IBSA s Environment Scan (Escan) 2013 has been produced with funding assistance provided by the Australian Government through the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE). About this report This Escan provides Innovation and Business Skills Australia (IBSA) with an opportunity to combine direct industry intelligence with statistical data on training and workforce participation. Through this process, skill needs and workforce development priorities are identified for Australia s innovation and business industries. The information is used by IBSA to advise government on refinements to training packages to meet the needs of industry and identify investment priorities for Australia s vocational education and training (VET) system. This is the sixth year in which Industry Skills Councils (ISCs) have been required to prepare an Escan. The Escan aims to give readers an understanding of the factors currently shaping and impacting on the IBSA industries and their workforce development. IBSA s industry coverage comprises enabling skills and functions that are relevant across a wide range of industries. The Escan is consequently an important contribution to thinking on skills and workforce development across the board and will be of interest to many readers within government and industry. The development of the Escan has drawn on a range of sources including industry, enterprise and Government research, recent publications and websites, and most importantly on IBSA s ongoing engagement with employers, workers and industry representatives. The department is specifically interested in the accurate targeting of ISCs efforts in developing and maintaining Training Packages. A summary of IBSA s Training Package activity in the twelve months to December 2012 is provided in Appendix A. This Escan was compiled between September and December 2012 and is a product of the available information and prevailing environment of that period. The methodology used for the Escan is described in more detail in Appendix B. Disclaimer IBSA has produced this Environment Scan as a resource for its stakeholders without any form of assurance. While IBSA aims to provide high quality content, it does not guarantee the accuracy of this information and therefore will not be liable in any capacity for damages or losses to the user that may result from the use of this information.

3 Contents Chapter 1 Executive summary 1 The Financial Services industry 1 Emerging workforce issues 2 Chapter 2 Industry intelligence 3 The Financial Services industry 3 Banks, building societies and credit unions 4 Insurance 5 Superannuation and funds management 6 Stock exchange and share registry 8 Financial planning and investment advice 8 Accounting services 10 Workforce characteristics and employment trends 11 Industry and workforce outlook 12 Occupations in demand 19 Chapter 3 Identified workforce development needs 20 Communication and relationship management 20 Regulation and compliance 20 ICT skills 21 Flexible, contextualised learning 21 Articulation into university 22 Chapter 4 Current impact of training packages 24 Update on training packages 24 Focus for the future 24 Uptake of training packages 25 Outlook for training 30 Chapter 5 Future directions Appendix A Methodology and Bibliography Appendix B Financial services occupations in demand Appendix C NCVER data A1 A3 B1 C1 i

4 IBSA Environment Scan 2013 List of figures and tables Figure 1: Financial Services industry revenue ($b) 3 Figure 2: Banks, building societies and credit unions product and services 4 segmentation ( ) Figure 3: Revenue of sectors within the insurance industry ($b) 5 Figure 4: Superannuation funds segmentation Figure 5: Stock exchange and share registry services segmentation Figure 6: Financial planning and investment advice service segmentation Figure 7: Accounting services segmentation Table 1: Financial Services industry occupations: employment 2011 and employment 12 change five years to 2011 Table 2: Australian financial services global footprint 13 Table 3: forecast employment growth Table 4: Enrolments and qualifications issued in Financial Services 26 Figure 8: Enrolments in Financial Services qualifications, Figure 9: Qualifications issued in Financial Services, Table 5: Business services qualifications: highest and lowest enrolments Figure 10: Enrolments by State and Territory in Financial Services qualifications, Figure 11: Enrolments geographic location in Financial Services qualifications, Figure 12: Previous highest education level of participants enrolled in Financial Services 28 qualifications, 2011 Figure 13: Enrolments by age in Financial Services qualifications, Figure 14: Enrolments in Financial Services qualifications by gender, Figure 15: Enrolments in Financial Services qualifications by study and delivery mode Figure 16: Financial Services qualifications apprenticeships and traineeships 30 commencements and completions Table 6: Workforce development challenges Table 7: Financial Services occupations in demand Table 8: Enrolments in Financial Services (FNB/FNS) Qualifications Table 9: Qualifications Issued in Financial Services (FNB/FNS) A1 B1 C1 C2 ii

5 Chapter 1 Executive summary The Financial Services industry The Financial Services industry covers banks, building societies and credit unions, insurers, superannuation providers and other fund managers, accountants and financial planners and advisers. Financial Services is the largest contributor to the Australian economy, eclipsing mining, manufacturing and construction. The Gross Value Added by the industry in June 2012 was higher than any other industry, at nearly $34b. The health of this industry is significantly tied to general economic and financial market conditions. While Australia s economy is in much better shape than most other OECD countries, partly due to the underlying strength of the Financial Services industry, consumer confidence is currently low. This, combined with a fragile non mining economy, will affect lending and growth in the industry in Profitability is expected to decline. However, the steady flow of funds into superannuation and the ageing population, with accumulated wealth, will support demand for financial products and services over time and emerging Asian markets will provide new opportunities for growth. After some hard years, most sectors in this industry appear ready to pick up in , albeit in a more subdued way than in the past. With growth rebounding across the industry, there are a number of trends that will influence the size and shape of the labour market in the next couple of years. Issues that have been evident for the past year or two and continue to have an impact include: the drive for productivity growth, in response to Australia s declining productivity in recent years, and improving oversight of the financial system as a result of the global financial downturn including the ongoing implementation of International Financial Reporting Standards and the global regulatory framework for more resilient banks Basel III This Escan has identified three other industry wide trends that will have a particular impact in They are: the role of the industry in the Asian Century the exponential growth, use of and expenditure on Information and Communication Technologies (ICT) by financial services, and offshoring of jobs. There are also a number of major regulatory changes being rolled out which will impact particular sectors, in particular: the introduction of the carbon tax, which is expected to have a particular impact on accountancy services the introduction of Stronger Super reforms, which will have a particular impact on superannuation funds the introduction of the Future of Financial Advice (FOFA) reforms, including a move by ASIC to introduce an examination for regulated financial advising occupations, which will affect investment managers, accountants and financial planners, and amendments to the Privacy Act that will significantly change data collected by credit agencies and data available about individuals nationally and internationally. Emerging workforce issues The Financial Services industry employs around 432,000 people. Half of these people work in the banking sector. Employment in a number of occupations in the industry contracted in the last five years, due to the ongoing efficiencies created by technology and the impact of the global financial downturn. However, all sectors are expected to increase employment levels over the next five years 1

6 IBSA Environment Scan 2013 with the strongest growth being in stock exchange and share registry services, accounting services and superannuation funds management. The changes occurring in the industry are expected to impact on the workforce in a number of ways, including the following: a greater focus on retention as growth in the industry takes off again, many financial service organisations may need to change current processes and incentives as part of a more sustainable, long term approach to building talent pools and retaining key people the need for sustainability skill sustainability reporting has become mainstream, driven by the potential business value generated through enhanced stakeholder reporting and communication, as well as the introduction of the carbon tax. All financial services, particularly those working with the large mining, manufacturing and construction industries, will need skills and systems to integrate sustainability into mainstream business processes a focus on corporate governance, business ethics and quality assurance the new FOFA reforms, new superannuation regulations, proposed changes to the Privacy Act and ongoing changes in the banking sector will require a stronger focus on corporate governance, business ethics and quality assurance better relationship management and communication these skills will be increasingly important to compete and conduct business internationally with high value customers, particularly in the Asian market ICT impact ICT represents a major investment in the Financial Services industry and is transforming the way the industry operates. Major recent leaps in technology means businesses will continue to require workers with skills to maximise the efficiencies of these platforms Offshoring of jobs recent research shows that the proportion of jobs at risk of being offshored in this industry is almost twice the rate for service industries as a whole. Occupations at the most immediate risk include bank workers, credit and loan officers and financial investment advisers and managers, and Links with higher education there is a complementary relationship between the higher education sector, with its focus on knowledge and analytical skills and the vocational education and training (VET) sector with its focus on vocational, industry based skills. Industry increasingly wants a combination of both skill types and pathways to and from both sectors to ensure the relevance and currency of the workforce. 2

7 Chapter 2 Industry intelligence The Financial Services industry The Financial Services industry covers banks, building societies and credit unions, insurers, superannuation providers and other fund managers, accountants and financial planners and advisers. Like other service industries, the Financial Services industry involves a high degree of professional labour input. It is skill and knowledge intensive in all areas of activity. Financial Services is the largest contributor to the Australian economy, eclipsing mining, manufacturing and construction. 1 It generates almost $400b in revenue a year. Almost half of this comes from superannuation funds which are largely non employing establishments. However it is these consolidated super funds, valued at about $1.8 trillion, which underpin much of Australia s financial services strength. 2 Even excluding the super funds, the sector is the largest contributor to economic output. The Gross Value Added by the industry in June 2012, at nearly $34b, was higher than any other industry. In the financial year the finance and insurance services along with mining were the largest contributors to GDP growth. 3 Despite its dollar value, Financial Services is a relatively small employing industry with only 432,000 workers, or 4 percent of the Australian workforce. Figure 1 below shows the makeup of the industry and the relative size of each sector in terms of revenue. Figure 1: Financial Services industry revenue ($b) Superannuation funds Banks, credit unions, building societies Life insurance General insurance Foreign Banks Health insurance Funds management (incl. super) Securitisation Vehicles Stock exchange Insurance brokerage Investment banking Accounting services Financial planning Source: IBISWorld Industry Reports: K7322, K7322, K7422, K7521, K7522, K7519, K7515, K7515, K7521, K7412, L7842, K7325, K7326, K7323, K7411, K7330 see full sourcing below. 4 The health of this industry is significantly tied to general economic and financial market conditions. While Australia s economy is in much better shape than most other OECD countries, partly due to the underlying strength of the Financial Services industry, consumer confidence is currently low. This, 1 Austrade (2012) Data Alert 19 January 2010 Financial sector the largest contributor to Australia s economy 2 Australian Bureau of Statistics (2012) Managed Funds, Australia. Cat. No , December Australian Bureau of Statistics (2012) Australian National Accounts: National Income, Expenditure and Product. Cat. No June K7322 Building Societies in Australia Jun 2012, K7322 Health Insurance in Australia Aug 2012; K7422 General Insurance in Australia June 2012; K7521 Superannuation Funds Management in Australia Aug 2012; K7522 Insurance Brokerage in Australia June 2012; K7519 Stock Exchange and Share Registry services in Australia Apr 2012; K7515 Financial Planning and Investment Advice in Australia May 2012; K7515 Funds Management (except superannuation funds) Apr 2012; K7521 Superannuation funds management in Australia Apr 2012; K7412 Superannuation Funds in Australia Apr 2012; L7842 Accounting Services in Australia May 2012; K7325 National and Regional Commercial Banks in Australia Apr 2012; K7326 Foreign Banks in Australia May 2012; K7323 Credit Unions in Australia Apr 2012; K7411 Life Insurance in Australia Apr 2012; K7330 Securitisation Vehicles in Australia Mar

8 IBSA Environment Scan 2013 combined with a fragile non mining economy, will affect lending and growth in the industry in Profitability is expected to decline. However the steady flow of funds into superannuation, and the ageing population with accumulated wealth, will support continued demand for a range of financial products and services and, over time, emerging Asian markets will provide new opportunities for growth in this industry. After some hard years, most sectors of the industry look set to pick up in , albeit in a more subdued way than in the past. Over the next five years, all sectors are expected to experience stronger than average growth and average revenue will increase at 4.2 percent per year. Government regulations can have a pronounced effect on an industry s dynamics. Large parts of the industry are currently undergoing significant reform, with a range of new regulations being rolled out in New financial regulations have come into effect in 2012, including new credit laws for lenders and brokers and financial advisory laws aimed at transparency and protecting consumers. Banking reforms aimed at increasing competition in banking, particularly the mortgage lending market, are also being rolled out this year. In the superannuation industry, there will be a compulsory increase in the superannuation levy and the introduction of a low cost superannuation product called MySuper which super providers will be required to offer. More details about the outlook for each sector in the industry are provided below. Data is drawn from the most recent IBISWorld Industry Reports, unless otherwise referenced. Banks, building societies and credit unions The banking sector makes its money primarily by providing housing, business and consumer loans. Banks also offer deposit products which allow them to raise money to fund lending activity as well as transaction accounts which generate some fee revenue. The bigger banks also offer wealth management services such as financial planning, superannuation and funds management. The product and services breakdown is shown at Figure 2 below. Figure 2: Banks, building societies and credit unions product and services segmentation ( ) 15% 4% 41% 15% Home loans Business loans Wealth management Consumer credit Other Total = $188.6b 25% Source: IBISWorld Industry Report: KZ300 Finance Industry in Australia (June 2012) Australia s big four banks collectively account for over 30 percent of this sector s revenue and are increasing their market share in a range of activities. These banks are among the ten top rated banks globally. Increasing concentration within the sector is being driven in part by developments in IT that are requiring greater capital investment but also providing greater economies of scale. Building societies that have survived acquisition or merger proposals appear to be weathering the competition well and most will continue to flourish in niche regional areas. Of the nine existing businesses, IBISWorld expects seven to survive the next five years. Contraction and consolidation has been occurring for some time; there were 139 building societies in

9 The credit union business model has allowed these businesses to face the financial crisis better than other institutions. Because they are owned by members, their lending approach is more prudent. Provided they continue to focus on customer service, this subsector is likely to do well in the coming five years. Both building societies and credit unions will benefit from government reforms rolled out in 2011 to assist smaller lenders access funds at a similar cost to the big four. After years of extraordinary growth, the global financial downturn resulted in a significant contraction in the banking sector between 2008 and Revenue and jobs were lost; employment in the sector went down by 5 percent in In the last year, with the rise in funding costs, banks have been protecting profit margins by continuing to shed jobs and outsource functions. Higher borrowing costs, greater regulation and lower debt levels will mean slower growth in financial markets over the next five years to reach an expected $231b by With growth, employment will pick up, particularly in the year where the sector is forecast to grow by 4 percent. This sector is highly labour intensive and employs highly skilled and experienced staff. The quality of service is an important point of differentiation between firms. Banks have renewed their focus on enhancing customer care levels in a bid to cross sell products from other divisions, such as insurance and investment products. The benefits obtained from cross selling have exceeded the potential productivity gains that could have been made by reducing employment in some areas. Insurance The insurance sector includes general insurers who protect individuals and businesses from losses associated with property, casualty, liability and other risks, as well as health insurers, life insurers and insurance brokers. This is a large sector of the economy with a combined revenue of over $100b. General and life insurance are the largest parts of the industry; see Figure 3. Figure 3: Revenue of sectors within the insurance industry ($b) General insurance Life insurance Health insurance Insurance brokerage Source: IBISWorld Industry Reports: K7322 Health Insurance in Australia Aug 2012; K7422 General Insurance in Australia June 2012; K7521; K7522 Insurance Brokerage in Australia June 2012; K7411 Life Insurance in Australia Apr Insurers earn their income from the sale of insurance policies and the investment of reserves in bonds, stocks and other assets. Insurance brokers provide impartial advice and expertise to consumers about insurance options and earn revenue by retaining a portion of the premium on insurance policies sold. Over the past five years revenue for the industry has declined on average, as deteriorating investment income has offset modest gains in premiums. The insurance industry is subject to a number of unforeseen events that are inherently difficult to forecast, such as natural disasters and the performance of investment markets. A particular challenge for the industry is how to deal with climate change and increasing numbers of natural disasters. 5

10 IBSA Environment Scan 2013 After a terrible few years, the insurance industry is expected to finally return to prosperity in The short term outlook for general insurers is positive due to a strengthening economy and it is expected the sector will expand on average at a similar rate to the overall economy. Life insurers are at a turning point. Their offerings have not resonated adequately with consumers, partly due to similar products being offered by superannuation providers. However, the sector is making a concerted effort to make their products simpler, more accessible and customisable. IBISWorld believes there is growth potential in this subsector because so many Australians are underinsured. The health insurance sector remains relatively healthy with annualised growth of 5.4 percent in the next five years. However, IBISWorld analysis shows the sector will need to reduce costs to cope with the ageing membership base, particularly management expenses. The insurance brokerage sector is also forecast to enter a stronger five year period, with solid profits as demand for general insurance picks up and higher premiums are charged. Many brokerage companies will also consolidate and centralise administrative functions to increase efficiency. This industry has a heavy regulatory burden and success is dependent upon the ability of businesses to comply with regulation. Changes in regulation, particularly taxation, can affect demand for products and services. For example changes in the income thresholds for the Medicare levy have an enormous influence on demand for private health insurance. Insurance sector staff need to be highly skilled negotiators and information analysts. The importance of sales and after sales service will become more important as the range of products on offer become more customised to different consumers. The sector also requires a large amount of administrative work, such as claims processing and maintenance of customer accounts. Labour intensity will be reduced and employment growth will slow in coming years as consolidation brings about scale economies and investment in technology increases automation. However, labour will continue to form a significant component of business investment as technology cannot replace large parts of the operations. The introduction of the National Disability Insurance Scheme and the National Injury Insurance Scheme in the next couple of years may have an impact on the broader insurance sector. These social insurance programs will cover some 400,000 people who have or acquire a disability or incur a catastrophic injury. 5 People may be less inclined to buy private insurance if some level of coverage is publicly available. Furthermore, demand for skilled labour may increase as the Government agency set up to administer these programs is likely to employ thousands of insurance agents and clerks. Superannuation and funds management Superannuation funds provide retirement benefits to members. Their revenue comes from contributions plus investments. Ninety percent of the working population are covered by superannuation. The superannuation guarantee requires employers to contribute 9 percent of their employees income to a super fund of the employees choice. Voluntary contributions are also encouraged. This system has made Australian superannuation funds the fourth largest private pension market in the world. There is a range of different types of super funds. The small funds sector is largest and growing fastest with more people wanting to take control of their finances in their retirement through self-managed funds. See Figure 4 below. 5 Productivity Commission (2011) Inquiry into a national disability long term health and support scheme 6

11 Figure 4: Superannuation funds segmentation % 16% 32% 19% 29% Small funds Retail funds Industry funds Public sector funds Corporate funds Source: IBISWorld Industry Report K7412 Superannuation funds in Australia, April 2012 Like other parts of the Financial Services industry the superannuation sector has been through a tumultuous time with the global financial downturn. However, a number of government decisions, along with improved investment conditions, should bring better results in coming years. Starting in regulatory changes will gradually increase the Superannuation Guarantee to 12 percent. Furthermore, with budget deficits continuing for a few years, the Government is unlikely to increase the public pension, putting pressure on people to maintain voluntary super contributions. This environment will help industry revenue grow by a forecast 11.6 percent per year over the next five years to $332.1b in Growth in will be particularly strong at a forecast 21.2 percent. This level of growth, albeit off a low base after the decimation of funds during the global financial downturn, has led IBISWorld to name superannuation as one of the top five Australian industries expected to fly in The surging number of self-managed funds is expected to do little to increase employment levels as the funds are non employing agencies but adviser numbers may grow as a result of this trend. Overall, the expansion of self-managed funds, combined with continuing mergers and outsourcing of administrative functions, signals that employment in the superannuation sector will probably decline in coming years. A big development in the industry is the introduction in 2012 of the Stronger Super reforms. These reforms aim to streamline administration and enhance fee transparency. All super funds will be required to offer a low fee MySuper product from July The fee revenue for the sector is forecast to decline as a result of these extra requirements and there will be consolidation within the industry, reducing the number of major funds. Funds managers A large number of funds use external administrators, advisers and managers. Management of superannuation funds has become big business and will continue to benefit from strong growth in super assets. The primary threats to fund managers are the Government s focus on super fund fees and the increasing popularity of self-managed funds. Other fund managers, outside the superannuation industry, will also increase revenue in anticipation of improved market conditions. The ageing of the population, growing wealth and new and evolving investment products will underpin continued demand for these services. 6 IBIS World (2012) Industries to fly and fall in

12 IBSA Environment Scan 2013 Stock exchange and share registry The stock exchange and share registry sector provides a wide variety of nominee, trustee, investment management and advisory services or other services to the finance and investment sector. As well as stock exchange and share registry services, the sector includes businesses that provide credit card administration services and non bank money changing services. The Australian Securities Exchange is the major player in the industry accounting for 6 percent of total revenue. The segmentation of services provided by this industry is provided in Figure 5 below. Figure 5: Stock exchange and share registry services segmentation % 40% 6% 6% 6% 15% Custody, administration and investment management services Credit card administration services Share registry Stock exchanges Trustees Other Source: IBISWorld Industry Report K7519 Stock Exchange and Share Registry Services in Australia (April 2012) This sector is largely dependent on the performance of the stock market, the value of shares and how much money people invest in managed funds. The financial crisis, therefore, had a massive impact on the sector. Complex transactions such as mergers and acquisitions create business opportunities for share registry companies. The sector will be buoyed by news that Australia s mergers and acquisitions activity is still strong, ranking fourth in the world after the USA, UK and China. 7 This sector, like the superannuation and funds management sector, will also benefit from the increase in the compulsory superannuation employer levy in 2013 from 9 percent to 12 percent. Superannuation funds hold an estimated 50 percent of Australian funds under management. Due to the increasing wealth in the population and the amount of funds going into superannuation, the stock exchange and share registry sector will continue to grow strongly. However, until the European debt crisis is resolved and the American economy has revived, market volatility will remain and this will dampen growth. Revenue is expected to increase at a more subdued average 9 percent per annum over the next five years, to reach $18.9 billion in Successful operators in this sector must have qualified and experienced employees with good product knowledge and marketing skills. They need highly experienced investment teams, clearly defined strategies and skilled economic researchers. Technology is also important in this sector, making it much more capital intensive than other Financial Services industry. Financial planning and investment advice The financial planning and investment sector comprises a vast number of individual proprietors and a handful of large firms. There are nearly 17,000 financial advisers in the industry. The large firms are the wealth management arms of large financial institutions. The major driver of demand for financial advice over the past five years has been the increasing number of individuals seeking advice on superannuation 7 Austrade (2012) Data Alert 17 January 2012 Australia corporate finance activities remains strong 8

13 matters. A recent ASIC survey suggests over a third of Australians have approached a financial adviser at some stage. 8 See Figure 6 below for segmentation of services provided in this sector. Figure 6: Financial planning and investment advice service segmentation % 8% 34% 21% Superannuation and retirement advice Investment advice and management Self-managed super fund advice Tax advice Other 27% Total = $4.3b Source: IBISWorld Industry Report K7515 Financial Planning and Investment Advice in Australia (May 2012) This sector is facing one of the biggest changes of all sectors in the Financial Services industry. The Government s overhaul of financial advice through its new FOFA reforms addresses issues of conflict of interest, transparency and duty to clients. The most far reaching of the reforms to the industry are the introduction of legal obligations to act in the best interest of clients and the banning of commissions that misalign the interest of advisers and their clients. This has required a shift to fee for service models from 01 July To ensure advisers can comply with these reforms, the Australian Securities and Investments Commission (ASIC) has proposed a new assessment and professional development framework in its Consultation Paper 153. This has a number of implications for financial advisers. In particular, ASIC has proposed a three stage assessment and professional development framework including a Certification Exam for new and existing advisers, one year of full time monitoring for new entrants to the industry and a review of knowledge every three years for all advisers. 9 The skills and performance of advisers therefore will be much more heavily scrutinised; they will need to undertake regular professional development and be involved in ongoing processes for qualification. The next five years will be tumultuous, with many players exiting the sector due to the FOFA reforms. Some industry players have claimed that close to 7,000 adviser jobs will be lost in the next couple of years. But IBISWorld and others 10 expect that in the end, greater transparency, professionalism and client confidence due to regulation changes will benefit the sector. In the five years through , industry revenue is expected to increase 4.5 percent per annum to reach $5.3 billion. This increase will start slowly, however, with low growth anticipated for Despite some uncertainty around the impact of the reforms, larger firms are focussing on recruitment and training of staff in anticipation of a growth period. The characteristics and skill sets required of a pre FOFA adviser will differ from those of a FOFA compliant adviser and new training will need to be undertaken. Good qualifications, in depth experience and product knowledge, access to a strong research base and well developed marketing skills will continue to be invaluable to successful businesses. 8 ASIC (2010) Access to Financial Advice in Australia, Report ASIC (2011) Licensing: Assessment and professional development framework for financial advisers. Consultation paper eg Parliamentary Joint Committee and Corporations and Financial Services February 2012, Corporations Amendment (Future of Financial Advice) Bill 2011 and Corporations Amendment (Further Future of Financial Advice Measures) Bill

14 IBSA Environment Scan 2013 Accounting services This sector includes accounting, auditing and bookkeeping services related to all aspects of taxation, financial reporting and auditing. Auditing and business tax services raise the most revenue. See Figure 7 below. While there are about 10,000 accounting enterprises across Australia, four firms the big four account for a third of the market share. Of late, however, mid tier firms have been closing in on the big four by offering more value for money services, especially in the highly regulated auditing services. Figure 7: Accounting services segmentation % 10% 35% 23% Business tax services Audit services Advisory services Personal tax services Book keeping Total = $15.8b 27% Source: IBISWorld Industry Report L7842 Accounting services in Australia (May 2012) A rebound in revenue growth in the accounting sector is expected in the next year; however profit margins are expected to fall as the entry of more firms offering similar services and capabilities creates an operating environment with stiff price competition. Demand will be low for small businesses due to slower demand for bookkeeping work as more people shift to digitalised tax lodgement and small firms will face increasing difficulties attracting talent at the rate of the big four. The big four are expected to continue to build business with Asia, particularly Chinese companies operating in Australia. A significant factor in revenue growth of larger firms has been in offering value added services, particularly advisory services to businesses such as risk consulting. The sector overall is expected to grow by 6.1 percent in and then by an average of 5.5 percent in the next five years, to be worth $20.7b by A big impact on the industry in the next year will be the carbon tax. Introduced in July 2012, this tax will affect 300 of the country s largest polluters, which collectively emit about 60 percent of Australia s total carbon pollution. Accounting firms able to capitalise on emission auditing and assurance services are expected to benefit as affected companies deal with larger compliance costs. IBISWorld expects those involved in tax and strategy work may also benefit. As the sector diversifies its services, and businesses become more data oriented and analytical, companies are looking to extend their hiring practices beyond the traditional business graduates and have commenced actively hiring engineers and economists. However, finding candidates with the right experience is not easy and those accountants with specialist knowledge will benefit accordingly Robert Walters (2012) Global Salary Survey 10

15 Workforce characteristics and employment trends The Financial Services industry employs about 432,000 people. A relatively small proportion of employees work part time 18 percent versus 30 percent for all industries. Numbers of apprentices and trainees in this industry are also relatively low at 7,700 nationally. 12 The Financial Services industry is younger that average, with only 31 percent of employees over 35, compared to 38 percent in all industries, and population ageing will therefore have less of an immediate impact than it will on other industries. Accounting clerks are an exception. With a median age of 42, they are one of the older occupations in the industry. Many of these workers are due to retire soon which will exacerbate skill shortages in this sector. 13 Financial Services is also more feminised than many other industries, with 53 percent of workers being women, compared to 46 percent in the workforce. A massive eighty percent of people in this industry work in capital cities. This compares with 63 percent in all industries. This is because the majority of large finance and insurance companies are located in capital cities. Sydney has the highest concentration of employment in this industry of any region, with 6 percent of its employment being in financial and insurance services, followed by Melbourne with 5 percent. 14 The largest employing sectors in the industry are banks, building societies and credit unions which, with about 206,000 people, together account for close to half of the employment in the industry. However, employment growth has been slow in this sector, even declining in some years. Technology has had a major impact. With many businesses offering customers the ability to check balances, transact and view information over the internet, the need for labour intensive back office roles has reduced. Accounting services are the next largest segment after banks; 106,000 people are employed in accounting businesses. Half of the businesses are small owner operator tax accountants. The smaller firms are in decline with the introduction of e tax software, but employment and wages will grow in larger accounting firms. Insurers health, general, life and brokers jointly employ about 83,000 people, with life insurance companies employing the most workers at 27,000. There are around 50 people working in each of the 600 odd life insurance companies around Australia. Stock exchange and share registry services also have close to 83,000 workers. 15 Overall, most new jobs in the last five years have been created in auxiliary finance and insurance services; including brokerage, funds management, stock exchange and share registry operation. Employment in this group of businesses is up by 31,100 or 28.4 percent. There has been a smaller rise in insurance and superannuation funds. 16 The major occupations in the Financial Services industry are accountants and accounting clerks, followed by bookkeepers and finance managers. Jobs growth in the last five years has been strongest for economists, accounting clerks and insurance, money market and statistical clerks. Employment in a number of occupations has contracted in the last five years, due to the impact of technology and the global financial downturn. The highest rate of decline was in the occupations of 12 DEEWR (2012) Australian Jobs 13 DEEWR (2012) Australian Jobs 14 DEEWR (2012) Australian Jobs 15 IBIS World (2012) Industry Reports: K7322 Health Insurance in Australia Aug 2012; K7422 General Insurance in Australia June 2012; K752; K7522 Insurance Brokerage in Australia June 2012; K7519 Stock Exchange and Share Registry services in Australia Apr 2012; K7515 Financial Planning and Investment Advice in Australia May 2012; L7842 Accounting Services in Australia May 2012; K7325 National and Regional Commercial Banks in Australia Apr 2012; K7326 Foreign Banks in Australia May 2012; K7323 Credit Unions in Australia Apr 2012; K7411 Life Insurance in Australia Apr 2012; 16 DEEWR (2012) Australian Jobs 11

16 IBSA Environment Scan 2013 financial dealers, credit and loans officers and insurance agents. Employment numbers and change over the last five years is outlined in Table 1 below. Table 1: Financial Services industry occupations: employment 2011 and employment change five years to 2011 Occupation Employment 2011 Change five years to 2011 % change Accountants 158,100 10,300 7% Accounting clerks 147,700 32,300 28% Book keepers 117,500-16,400-12% Managers, finance 55,400 4,200 8% Bank Workers 55,300-1,700-3% Financial investment advisers and managers 45,900 6,600 17% Insurance, money market and statistical clerks 34,600 6,800 25% Financial brokers 25, % Credit and loans officers 23,800-6,000-20% Auditors and company secretaries 17,800 2,700 18% Financial dealers 15,900-9,500-37% Insurance agents 10,600-2,100-17% Actuaries, Mathematicians and Statisticians 6, % Economists 5,200 2,000 62% Insurance investigators and loss adjusters 4, % Source: DEEWR 2012 Australian Jobs Industry and workforce outlook Industry outlook With growth rebounding across the industry, there are a number of trends that will influence the size and shape of the labour market in the next couple of years. Issues that have been evident for the past year or two and continue to have an impact include: the drive for productivity growth, in response to Australia s declining productivity in recent years, and improving oversight of the financial system as a result of the global financial downturn, including the ongoing implementation of International Financial Reporting Standards and the global regulatory framework for more resilient banks, -Basel III. A review of recent commentary and literature indicates there are three other industry wide trends that will have a particular impact in They are: the role of the industry in the Asian Century the exponential growth, use of and expenditure on ICT, and offshoring of jobs recent research shows that the proportion of jobs at risk of being offshored in this industry is almost twice the rate for service industries as a whole. Occupations at most immediate risk include bank workers, credit and loan officers and financial investment advisers and managers. 12

17 In addition, a number of major regulatory changes are being rolled out in 2012 which will impact on particular sectors, including: the carbon tax, with a particular impact on accountancy services the Stronger Super reforms which will have a particular impact on superannuation funds the FOFA reforms, including a move by ASIC to introduce an examination for regulated financial advising occupations, which will affect investment managers, accountants and financial planners, and amendments to the Privacy Act which will significantly change data collected by credit agencies and data available about individuals. These industry impacts are discussed in more detail below. Asian century Australia s role in the Asian Century was a hot topic for politicians and economists during There is general agreement that Australia s success in the future will depend on our ability to integrate more fully with Asian markets. The increasing value of the Asian region to Financial Services is evidenced by the fact that the Asian region recently overtook North America for the first time as being home to the world s largest population of high net worth individuals people with greater than US$1 million in investable assets.18 Furthermore, investment from emerging Asian economies is increasing. China s foreign investment in Australia has grown from $0.6 billion at the end of 2006, to $12.8 billion at the end of Australia in the Asian Century looks at the implications and opportunities for Australia, including opportunities for trade, investment and financial markets. A recent survey of investment and financial services associations members showed that approximately one third of investment managers operating in Australia source funds under management from overseas clients, and Australian financial services companies are expanding into all types of overseas markets, particularly in Asia. Such expansion ranges from straight services exports from Australia to complex outwards investment strategies, such as opening an office/subsidiary in a foreign market, acquiring a foreign operation, setting up a joint venture with foreign partner/s to provide services into a foreign market, or investment in a distribution platform in a foreign market. 20 See Table 2 below. Table 2: Australian financial services global footprint Asia Pacific Europe Americas Africa and Middle East Banking China, Fiji, Hong Kong, India, Indonesia, Japan, NZ, Singapore, Vietnam Malta, UK Canada, Cayman Islands, USA Funds management Fiji, Hong Kong, Japan, Korea, Malaysia, NZ, Singapore, Taiwan, Thailand Germany, Ireland, Luxembourg, Netherlands, Switzerland, UK Canada, USA, Brazil Oman, UAE, South Africa Financial planning Hong Kong, Singapore, Thailand Insurance China, Fiji, Indonesia, NZ, Samoa Investment administration China, Hong Kong, Malaysia, NZ, Singapore, Taiwan France Canada, USA, Brazil 17 See, for example, Treasurer Wayne Swan s speech at The Prime Minister s Economic Forum 12 June 2012 Making this the Australian century in Asia; and Dr Ken Henry s presentation to the AiGroup National Forum 20 August 2012 Australia in the Asian Century 18 Austrade (2012) Data Alert 2 July 2012 Australia remains home to the Asia-Pacific s third largest HNWI population 19 Department of Prime Minister and Cabinet (2011) Australia in the Asian Century issues paper 20 Austrade (2010) Investment Management Industry in Australia 13

18 IBSA Environment Scan 2013 Asia Pacific Europe Americas Africa and Middle East Mortgage brokering China, NZ USA Stock brokering Hong Kong, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand Germany, Switzerland Canada, USA South Africa Source: Austrade 2010 Investment Management Industry in Australia, survey of Investment and Financial Services Association members The Government is actively supporting these developments. In 2008 it set up the Australian Financial Centre Forum (AFCF) to position Australia as a leading financial services centre in the region. The AFCF s report Australia as a Financial Centre: Building on our Strengths also known as the Johnson report was released in January The Johnson report contained a number of tax and regulatory recommendations. One recommendation was the development of an Asia Region Funds Passport to help Australian fund managers access Asian markets. The Funds Passport would take the form of a multilateral framework enabling an investment fund in one country that had signed up to the passport framework to offer the same products in each of the signatory countries; this would enable Australia to export financial expertise more easily to Asia. 21 This initiative has strong support from the Financial Services industry. 22 Asia Pacific Economic Cooperation finance ministers recently endorsed and welcomed the exploration of the Passport and a pilot program involving select countries may be operational by the end of ICT The use of telecommunications services, information technologies and electronic distribution technologies is increasing and will continue to influence how financial services operate. The Financial Services industry spent more than any other industry on information and communications technology (ICT) last year, at $9.6 billion or nearly 22 percent of the entire ICT spend in Australia. This spend is forecast to grow to around $11.1 billion by Over 30 percent of expenditure in the industry is dedicated to ICT. 25 Financial services have been at the forefront of using technology for decades, particularly banks. Across the sector, new forms of technology, such as cloud computing, workspace strategies, virtualisation, mobility and social business are now driving activities to achieve cost savings and productivity improvements. 26 The introduction of the national broadband network (NBN) is set to have a significant impact in this industry. The NBN will deliver further advances in online banking/e banking and the ability to deliver services to customers on demand. Improvements in security and connectivity through high speed broadband will accelerate the personalisation of banking, finance and insurance service delivery, especially to rural and remote customers. 27 Leveraging customer data and technology to understand consumer behaviour has been one of the recurrent themes in financial services for over 20 years. The last twelve months has seen another leap forward in this space, under the name of big data. Technical breakthroughs in the analysis of data have opened up an extraordinary volume and diversity of data which can now be used to shed light on consumers, while enabling this analysis to occur nearly in real time. At the same time, decreases in the cost of data storage have made it feasible to store data which until recently would have been disposed of. There is evidence pointing to a competitive advantage for those organisations that are collecting and 21 Austrade (2010) Investment Management Industry in Australia 22 Price WaterhouseCoopers (2010) Asia Region Funds Passport: the future of the funds management industry in Asia 23 Gushn, M. (2012) The Asia Region Funds Passport pipedream or pipeline? 24 IDC (2012) Australia Banking, Financial Services and Insurance ICT Market Forecast and analysis July Kambhampaty, S. & Konduru S. (2012) Financial Services Innovation in the ICT Engine Room: Innovate or perish 26 IDC (2012) Australia Banking, Financial Services and Insurance ICT Market Forecast and analysis July IBSA (2011) Impact of the Digital Economy and the National Broadband Network on Skills. 14

19 using Big Data to drive new insights and strategies. 28 Industry stakeholders have noted that companies that cannot keep up with new technologies, such as Big Data, particularly small businesses, are being forced to close down. Offshoring of jobs While both low and higher level ICT skills are in demand, many companies are looking overseas to meet this need more economically. According to recent research, occupations experiencing high rates of offshoring are in ICT and administrative occupations such as data processing and software and applications programmers. The rate of offshoring in service sector jobs has increased from 9.7 percent in 2007 to 10.2 percent in It is not just ICT and administrative jobs in the industry which are at risk. This research found that three quarters of Finance and Insurance industry occupations are in the top one third of occupations at risk of offshoring and more than one third of jobs are in the top 10 per cent. Occupations at most immediate risk are bank workers, credit and loan officers and financial investment advisers and managers. Overall 24 percent of jobs are thought to be at risk of offshoring, representing 95,000 jobs or more than 3,000 jobs in the industry a year over the next two to three decades. 29 Carbon pricing The Australian government s carbon pricing scheme came into force on 1 July It is early days in the carbon pricing environment and decisions about its future structure are still being made, so it is somewhat unclear how broadly this will impact on the industry. Deloitte Access Economics, however, predicts that the carbon tax will create opportunities for auditors and financial analysts and will expand the scope of the accounting profession. 30 IBISWorld believes that there are accounting implications beyond servicing the big polluters, in terms of managing household and business tax matters, including a higher tax free threshold, rising marginal tax rates and increased government handouts. 31 Every organisation affected by the tax will require additional accounting services. IBISWorld suggests, for instance, that carbon tax related accounting is likely to boost revenue by an average 2.2 percent per year for the coming five years. The boost will be the result of an increase in reporting requirements, as accountants will be responsible for classing new assets and liabilities related to emissions and carbon permits. Further, the lack of standards and compliance guidelines for carbon tax related record keeping will provide work for those offering services in exploratory accounting practices. 32 Because the tax initially applies only to Australia s 300 top polluters, it is likely that the big four accountancy firms will initially gain the most business. Whether or not the smaller firms are able to capture more business from this regulatory change is yet to be seen. Stronger super reforms The latest raft of reforms to superannuation include the creation of a new simple, low cost default superannuation product called MySuper; reforms to make the processing of everyday transactions easier, cheaper and faster, through the SuperStream package of measures; and strengthening of the governance, integrity and regulatory settings of the superannuation system, including in relation to self-managed superannuation funds. 33 These reforms will create efficiencies and greater transparency and customer responsiveness in the industry, but will also have cost and training impacts that the industry will need to prepare for. All superannuation funds will be required to build in a MySuper product as part of their offerings from 1 July Fund managers will need to consider how this product fits with other products offered by a fund. They will also need to comply with new administrative arrangements for each MySuper product they wish 28 PriceWaterhouseCoopers (2012) Delivering solid, not spectacular growth Major Banks Perspectives May National Institute of Economic and Industry Research (2012) Off-shore and Off Work: The future of Australia s service industries in a global economy 30 Deloitte Access Economics (2012) ITAB Market Effectiveness Report 31 IBIS World (2012) The Clean Energy Plan and Australia s industries June IBISWorld (2012) The Clean Energy Plan and Australia s industries 33 Department of Treasury (2012) Stronger Super reforms overview 15

20 IBSA Environment Scan 2013 to offer. The Superstream package of reforms will reduce the reliance on paper forms, with increased use of web based applications and will require the industry to comply with improved data standards. The stronger super reforms provide a trigger for broader workplace development discussions in this sector. Innovation and Business Skills Australia (IBSA) has recently undertaken a workplace development strategy with the superannuation industry. Key issues identified by stakeholders in interviews held in July/August 2012 included: the blurring of roles within the industry, eg some stakeholders noted that a superannuation investment adviser performs the same role as a more generic financial industry investment adviser the importance of well-rounded skills formation, encompassing sound communication and problem solving skills the need for skilling to support career pathways from VET to higher education and vice versa, and the fact that superannuation stakeholders are waiting on ASIC to ascertain changes in the regulatory/assessment requirements arising from ASIC s enhanced role in regulating the sector. 34 The Future of Financial Advice (FOFA) FOFA reforms will be introduced from 1 July The reforms include the introduction of a statutory best interest duty for financial advisers, a banning of payments from product manufacturers to advisers and increasing the powers of ASIC to ban industry participants. Financial advisers will need to develop and refine systems to meet a range of new obligations. Under these reforms accountants and others will no longer be able to advise on self-managed super funds (SMSFs) without a licence. ASIC will be responsible for an SMSF auditor register and for setting competency standards for approved SMSF auditors. Registration is intended to ensure SMSF auditors have a minimum standard of competency and knowledge of the relevant laws. There has also been a commitment to enshrine the term financial planner/adviser in law; this will help legitimise the profession. While there have been concerns in the industry that the reforms will lead to job losses, the latest calculations estimate a short term boost to adviser employment as a result of a shift to fee for service models. 35 There have also been concerns about compliance costs. A senate committee that looked into the projected impact of the FOFA reforms on the financial advice industry concluded that costs of implementation and compliance for the industry will be far outweighed by the benefits to consumers from high quality advice and transparency in charging fees; it acknowledged however that the next 18 months to two years will be a time of significant adjustment for many in the financial advice industry. 36 Changes to the Privacy Act A bill is expected to be passed by the Parliament in late 2012 or early 2013 to strengthen the Privacy Act It involves a streamlined set of Australian Privacy Principles and the introduction of comprehensive credit reporting. These changes will significantly affect what data is collected, available and shared about individuals. There will be more comprehensive credit reporting provisions, including five new data sets, and increased coverage of the credit reporting provisions to a wider range of credit reporting agencies and credit providers. Personal information will only be able to be sent overseas under strict guidelines. Credit providers will also need to comply with new complaints and corrections procedures and significant criminal and civil penalties will apply under the new arrangements. 37 All credit providers will be grappling with how the new rules on collecting, managing, storing and using personal information will affect their businesses. The changes may have a particular impact on businesses that currently operate internationally, or offshore parts of their operations. 34 IBSA (2012) Superannuation workplace development strategy discussion paper 35 Rice Warner Actuaries (2012) The Financial Advice Industry Post-FOFA 36 Parliamentary Joint Committee and Corporations and Financial Services (2012) Corporations Amendment (Future of Financial Advice) Bill 2011 and Corporations Amendment (Further Future of Financial Advice Measures) Bill Australian Institute of Credit Management (2012) Credit Industry Major Legislation Reforms 16

21 Workforce and employment outlook Forecast employment for various sectors in the industry in the next five years is outlined in Table 3 below. Staffing in the funds management sector, which was quite depressed during the economic downturn, will continue to grow in , and banks are expected to begin employing again with a 4.1 percent growth in employment anticipated, after relatively low or declining growth the previous five or six years. 38 The largest employers in the industry are banks, accountancy firms and stock exchange and share registries. Each of these three sectors are expected to grow strongly in the next five years, with stock exchange and share registry services and accounting services exhibiting particularly strong growth. The superannuation funds management sector will also be employing many more staff, with forecast growth of 22 percent over the five year period. Employment in the insurance sector is expected to be more subdued. Table 3: forecast employment growth Sector Employment Employment Forecast Employment Growth National and regional commercial banks 136, ,454 8% Accounting services 108, ,730 21% Stock exchange and share registry 82, ,000 25% Insurance brokerage 24,254 24,430 1% General insurance 21,540 22,580 5% Foreign banks 17,200 19,000 10% Financial planning and investment advice 16,989 18,257 7% Superannuation funds management 15,922 19,462 22% Health insurance 10,198 10,620 4% Credit Unions 8,860 9,181 4% Funds management (excl. superannuation) 6,488 7,648 18% Building societies 2,110 2,220 5% Source: IBISWorld Industry Reports: K7322, K7322, K7422, K7521, K7522, K7519, K7515, K7515, K7521, K7412, L7842, K7325, K7326, K7323, K7411, K7330; see full reference below. 39 According to the Department of Education, Employment and Workplace Relations (DEEWR), the occupation that will exhibit by far the strongest growth is accounting clerks over 11 percent. There will be moderate growth between 5 percent and 8.5 percent in employment for accountants, auditors and company secretaries, insurance, money market and statistical clerks, financial brokers, financial investment advisers, finance managers, insurance brokers and economists. 40 This aligns with the findings of the Robert Half 2012 Banking and Financial Services Salary survey which found that employers want to employ frontline finance and accounting candidates to fill new and very different positions which support the more efficient business structures implemented in response to the 38 Robert Half Finance and Accounting (2012) Asia Pacific Banking and Financial Services Salary Guide IBISWorld Industry Reports: K7322 Building Societies in Australia Jun 2012, K7322 Health Insurance in Australia Aug 2012; K7422 General Insurance in Australia June 2012; K7521 Superannuation Funds Management in Australia Aug 2012; K7522 Insurance Brokerage in Australia June 2012; K7519 Stock Exchange and Share Registry services in Australia Apr 2012; K7515 Financial Planning and Investment Advice in Australia May 2012; K7515 Funds Management (except superannuation funds) Apr 2012; K7521 Superannuation funds management in Australia Apr 2012; K7412 Superannuation Funds in Australia Apr 2012; L7842 Accounting Services in Australia May 2012; K7325 National and Regional Commercial Banks in Australia Apr 2012; K7326 Foreign Banks in Australia May 2012; K7323 Credit Unions in Australia Apr 2012; K7411 Life Insurance in Australia Apr 2012; K7330 Securitisation Vehicles in Australia Mar DEEWR (2012) Australian Jobs 17

22 IBSA Environment Scan 2013 economic downturn. They are also particularly interested in hiring senior finance and accounting staff to provide guidance and expertise to these new teams. 41 The occupations that will have the most job openings in the future, due to worker turnover and the creation of new jobs, are accountants, accounting clerks and bookkeepers, which are all expected to have between 25,000 and 50,000 openings, followed by finance managers which will have between 10,000 and 25,000 job openings. 42 There are a number of major workforce impacts resulting from the changes emerging in the industry. A focus on retention as growth in the industry takes off again, many financial service organisations may need to change current processes and incentives as part of a more sustainable, long term approach to building talent pools and retaining key people. The Robert Half Salary Survey for this industry said that many fearful employees, who sat tight during the downturn, are now seeing an increase in job advertisements and prospects for better pay and working conditions. As a result, employers are reassessing their organisation s human resource strategies to combat fears of a mass exodus and to stay ahead of the competition by securing top talent. The survey data shows that flexible working hours is a highly effective approach to achieving this, with a third 33 percent of Australian employees in the Financial Services industry indicating that they would be willing to accept a slightly lower salary for the opportunity to take on more flexible hours which allow for greater work life balance. Offering training and development opportunities is also a highly effective retention strategy for this industry. 43 Teleworking or working from home for some of the week is also being more frequently used to promote work life balance. The digital revolution means teleworking will continue as a key trend, with possibly one in four people in the workforce working at least partially from home if not full time by the middle of this century. 44 Sustainability sustainability reporting has become mainstream, driven by the potential business value generated through enhanced stakeholder reporting and communication. 45 Seventy four percent of businesses believe that behaving sustainably is about reputation management and 38 percent believe it brings stronger financial performance. 46 With the introduction of carbon pricing, sustainability reporting will become more widespread. Increasingly companies may be required to disclose sustainability related information within the scope of specific regulatory requirements. Aligning sustainability reporting with financial reporting and other forms of corporate disclosure is an important and evolving area. Increasing interest by investment analysts and capital markets in environmental sustainability related information demonstrates the growing need to apply the rigour of financial data collection, aggregation and analysis to some dimensions of sustainability performance. Given this situation, Chief Financial Officers (CFOs) and other finance professionals will need to have a detailed understanding of their companies approaches to sustainability reporting, have confidence in the quality of disclosed information and be able to articulately discuss how their companies are managing relevant sustainability issues. 47 Firms will need to have the ability to integrate sustainability with financial activity, which means analysts will need to be able to incorporate information such as carbon emissions and risk analysis into valuation models. Over the next 10 years the need to report to shareholders on non financial information and to discuss correlations between sustainability and financial information will grow. 48 All financial services, particularly those working with the large mining, manufacturing and construction industries, will have 41 Robert Half Finance and Accounting (2012) Asia Pacific Banking and Financial Services Salary Guide DEEWR (2012) Australian Jobs 43 Robert Half Finance and Accounting (2012) Asia Pacific Banking and Financial Services Salary Guide IBIS World (2012) Snapshot of Australia s Digital Future to KPMG (2008) Sustainability reporting: a guide 46 Nossal Institute for Global health 2011 People, Productivity, Planet 47 KPMG (2008) Sustainability reporting: a guide 48 Business Skills Victoria (2011) Industry Skill Needs Report

23 responsibilities in this regard and will need skills and systems to integrate sustainability into mainstream business processes. Corporate governance, business ethics, quality assurance the new FOFA and superannuation regulations and proposed changes to the Privacy Act will require a stronger focus on corporate governance, business ethics and quality assurance, particularly as the new legislation can attract criminal penalties, not just civil penalties. An ASIC 2011 shadow shopping study found that 39 percent of the retirement advice reviewed was of poor quality and failed to meet the requirements of the Corporations Act. Only 3 percent was of good quality. ASIC concluded that the relatively low requirements to enter the financial advice industry as an adviser, combined with disparate standards of ongoing training and development, present significant barriers to the quality of financial advice that clients receive. For example, the length of training courses and nominal hours vary, ranging from providers of short compliance only solutions to university masters programs. 49 Businesses will need to review their corporate governance and quality assurance systems and ensure that they comply with FOFA and other regulations, including ensuring staff have appropriate skill sets to respond to the regulatory requirements. Occupations in demand A list of Occupations in Demand is included in Appendix 2. The list is collated from industry intelligence presented in this Escan on the industry, employment trends and the workforce. This list contributes to workforce development and planning strategies highlighted in Chapter 3 and presents a clear relationship to training packages. This following occupations and job roles have been reported as in demand in the Finance Services industry at IBSA s Escan 2013 industry consultations and validation: Accountants Customer service officers particularly bank to bank sellers, personal bankers, home finance, commercial and bank manager positions Insurance sales consultants Risk managers Specialists in IT and superannuation Personal injury case managers Carbon tax specialists Small business bookkeepers Mortgage brokers Project managers Workforce planners and change managers Superannuation administrators Financial advisers Credit officers, and Audit/compliance analysts. 49 ASIC (2012) Shadow shopping survey on retirement advice, Report

24 IBSA Environment Scan 2013 Chapter 3 Identified workforce development needs Communication and relationship management Relationship management and communication skills will be increasingly important to compete and conduct business internationally with high value customers, particularly in the Asian market. Finance companies are already working closely through partnerships and collaborations with Asian companies. To maximise opportunities in the Asian Century, staff will need an understanding of different communication patterns and to be culturally competent; this applies particularly to relationship managers, business developers and executives. They will also need to be mobile, willing to travel and/ or relocate to different cities across the globe. The additional scrutiny of the quality of the financial advisory arrangements will also demand a workforce with strong communication skills. The recent ASIC shadow shopping study found that participants level of comfort with their adviser was an important factor in satisfaction and this sense of comfort was informed by a range of factors relating to a generic notion of the adviser providing a professional service, including their organisation and preparation, their interpersonal skills and manner, their knowledge or expertise as well as their ability to communicate clearly and effectively. 50 The superannuation industry has also identified communication skills as one of the key factors impacting on their sector. Fiona Reynolds, CEO of the Australian Institute of Superannuation Trustees (AIST), has noted that the general public is not very well engaged with superannuation and not very well informed. Better communication and marketing skills would improve the level of information to the public. 51 Regulation and compliance The finance industry is already highly regulated. The major regulatory requirements affecting the industry are contained in a number of statutes and in common law, including general Trust Law, Corporations Law, the Income Tax Assessment Act, the Superannuation Guarantee Administration Act 1992 and the Superannuation (Supervision) Act 1993 (SIS). The superannuation funds sector also faces prudential regulation, due to the overall community significance of superannuation, its compulsory nature and its importance to the government s broader retirement income policies. 52 Stronger regulatory requirements for financial institutions were put in place following on from the global financial downturn and new laws are progressively being introduced as part of the Stronger Super reforms and the FOFA reforms. New international legislation is also impacting on the Financial Services industry, particularly the Dodd Frank Wall Street Reform and Consumer Protection Act, which became law in the US in 2010 in response to the global financial downturn. Dodd Frank has extra territorial impact on banks based in countries other than the US that wish to transact business in the US and so has greatly increased the compliance requirements of Australian financial institutions. The Act has also contributed to a huge increase in the importance of information and data management systems for the purposes of internal control and meeting regulatory requirements. Legislation similar to Dodd Frank is in the process of being implemented in other countries. As a result we are beginning to see a shift in the products that banks trade and how they trade them, ie a shift from customised products traded over the counter to standardised products traded on trading platforms. This increasing regulation will heighten the need for relevant, high quality training and skill development in relation to risk management, corporate governance, planning and compliance skills, for years to 50 ASIC (2012) Shadow shopping survey on retirement advice, Report IBSA (2012) Superannuation workplace development strategy discussion paper 52 IBSA (2012) Superannuation workforce development strategy discussion paper 20

25 come. It is also driving demand for good quantitative analysts and data managers, with vacancies often being filled by people from overseas because of a shortage of skills in Australia. Business Skills Victoria has identified the need to ensure that accountants are up to date with changes in the Australian Accounting Standards and are working in line with the International Financial Reporting Standards. 53 Future accounting changes are imminent as a number of new and amended standards come into play from 1 January Ernst and Young point out that, following on from the global financial and Eurozone sovereign debt downturns, regulators and the investor community are continuing to closely monitor financial reporting. 54 With the introduction of the MySuper products and legislative changes to the management of Self- Managed Funds Schemes, training will be required for staff in superannuation and funds management sectors. As part of the FOFA reforms, ASIC has set out new minimum training standards for the training of financial product advisers. Advisers need to meet the standards and be assessed by an authorised assessor listed on the ASIC Training Register. Depending on the adviser s role, they will be required to be trained in particular units at either Diploma level or Certificate III level. 55 ICT skills As noted above, ICT represents a major investment in the Financial Services industry and is transforming the way the industry operates. Banking and financial services have a high concentration of computer literacy and led the way in implementing new technologies on a large scale. 56 Major recent leaps in technology means businesses will continue to require workers with the skills to maximise the efficiencies of these platforms. Leveraging advances such as social media and Big Data have particular potential to improve customer expectations in a more productive manner. Financial services will need people with analytical skills to interpret the data and people with ICT design skills to develop internet based products and services to improve the customer experience. In their Workforce Development Strategy, formed in 2012, superannuation stakeholders noted that staff need to be computer savvy. Skill gaps identified by stakeholders include data base managers, infrastructure specialists, compliance managers, marketers and social media experts. High speed broadband is seen to be changing business operations as processing moves on-line. Electronic document management is also a huge skill gap area in the industry. 57 Flexible, contextualised learning Many financial services firms have a tradition of privately funded, enterprise based training. Until data on privately funded training is available, however, it is difficult to estimate the full extent of training that occurs in the sector. A 2009 study indicated that publicly funded training might comprise only percent of the total industry training expenditure. 58 IBSA industry consultations indicate that financial services providers want enterprise based training and on the job teaching and learning to ensure training is contextualised to the organisation s needs and that skill needs are addressed in context. A recent survey of employers of graduates from Australian business schools a third of respondents coming from the Financial Services industry, found the need 53 Business Skills Victoria (2011) Industry Skill Needs Report Ernst and Young (2012) IFRS Outlook August ASIC (2012) Licensing: Training of financial product advisors, Regulatory Guide Castelli, A (2004) ICT practitioner skills and training: banking and financial services 57 IBSA (2012) Superannuation workplace development strategy discussion paper 58 ERTOA (2009) Profiling the Australian enterprise RTO: Summary report 21

26 IBSA Environment Scan 2013 to address the theory/practice issue by giving graduates more access to real life examples; practical experience was perceived as the most important role of the modern Business School. 59 The speed of change in technology and regulation affecting the Financial Services industry means that skill sets are likely to be a popular way of topping up the skills and knowledge of the workforce in a way that responds to the needs of individual organisations. Recent research by the National Centre for Vocational Education Research (NCVER) suggests that skills sets are a valuable VET solution because of their flexibility and capacity to be responsive to changing labour market needs and that skill sets can enable particular employers to tailor VET to their specific workforce requirements and specialisations. The research found that skill sets can respond to the following three trends, all of which have particular relevance to the Financial Services industry: general advances in information technology, design technologies and telecommunications general advances in regulatory frameworks, including those that apply to workplace and occupational health and safety, specific industry regulations, taxation and goods and services tax legislation, and the drive for increased productivity and accountability, which has led to changed work practices, more efficient work organisation and an increased focus on quality assurance and control. 60 Superannuation stakeholders appear to be divided on the question of skill sets. The Financial Planning Association of Australia does not want skill sets introduced into the Financial Services Training Package. The Association for Superannuation of Australia however would like to see a number of skill sets introduced to assist the industry. Articulation into university Representatives in the Financial Services industry have expressed a desire to have more seamless pathways between the higher education and VET sectors. They acknowledge the complementary relationship between higher education which primarily provides knowledge and analytical skills and the VET sector with its focus on vocational, industry based skills. The higher education sector already plays an important role in the provision of skills for this industry; with around two in every five workers holding a Bachelor Degree or higher qualification. Industry wants a combination of both these skill types to ensure the relevance and currency of the workforce. This is consistent with the Australian Workforce and Productivity Agency (AWPA) position on the need for greater workforce development to maintain our economic position. Specifically it has noted that we need a workforce in which more people have skills, but also multiple and higher level skills and qualifications. 61 There is already significant movement of students between VET and higher education in both directions in business related fields. 62 Easier articulation and credit transfer arrangements for VET students into higher education and vice versa would facilitate this goal. A comprehensive 2006 study on articulation and credit transfer arrangements found that even in those institutions that are both committed to and successful in creating pathways for students to move with credit from VET to higher education, barriers continue to hamper efforts and these pathways do not always operate as smoothly, efficiently or effectively as they might. 63 A 2009 study, Not for the Faint Hearted, further found that implementing credit transfer and articulation arrangements is rarely straightforward, is usually challenging and always requires a significant investment of time, energy and money. The challenges arise mainly from different approaches to learning, administrative difficulties and concerns about quality, and attitudes and perceptions Jackson and Chapman (2010) Business Graduates Skill Sets Summary Report 60 Mills, J. et al (2012) Workforce skills development and engagement in training through skill sets: literature review 61 Australian Workforce and Productivity Agency (2010) Australian Workforce Futures: a national workforce development strategy 62 Harris, R. et al (2005) Student traffic: two way movement between VET and higher education 63 PhillipsKPA (2006) Giving credit where credit is due: final report 64 Ithaca Group (2009) Not for the faint hearted 22

27 In 2012, IBSA commissioned research on this issue, focussed on the marketing and training and education sectors. The research confirms that the whole area of articulation still lacks consistency, is individualistic and difficult to understand and negotiate. It suggests that the Australian Qualifications Framework (AQF) Pathways policy be used to establish agreed guidelines; it also proposed reporting and data collection in relation to articulation arrangements and greater transparency on credit transfer decisions so that the demand, uptake and use of arrangements are better understood by all parties. TAFE NSW, in partnership with IBSA, CPA Australia and four universities, has recently launched a new tertiary pathway whereby students undertake their first two years of study with TAFE NSW Higher Education, gaining a custom built TAFE NSW Associate Degree in Accounting which, on successful completion, will equate to the first two years of a participating university s Bachelor Degree in Accounting. It provides a combination of VET and university education, with flexible entry and exit points. It also provides certainty for students because they are not required to negotiate their own credit transfer arrangements. 65 This model might be usefully explored by other sectors within the Financial Services industry. In the finance industry, VET is often used by graduates seeking to upskill through short, targeted qualifications. Articulation from higher education to VET may be further assisted by a recent decision by the AQF Council. In late August 2012, the AQF Council determined that the Vocational Graduate Certificate and Vocational Graduate Diploma qualification types will be removed from the AQF. It further determined that the Graduate Certificate and Graduate Diploma qualification types will be retained in the AQF at Level 8 and available for accreditation, but that both higher education and VET providers will be able to issue them TAFE NSW (2012) The best of both worlds; a significant tertiary pathway for students 66 AQF Council (2012) Review of the Graduate and Vocational Graduate Certificate and Diploma qualification types. Communique 23

28 IBSA Environment Scan 2013 Chapter 4 Current impact of training packages Update on training packages The Financial Services Training Package addresses the needs of a wide and diverse community within the economic sector identified as finance. This diversity provides many challenges in ensuring the workforce development needs are met from within the VET environment. The occupational area the package covers include: Accounting Banking Bookkeeping Conveyancing Credit management Finance and mortgage broking Financial literacy Financial markets Financial planning Life Insurance Insurance loss adjusting Insurance services Mercantile agents Personal injury management Personal trustees Financial risk management Self-managed superannuation Superannuation Insurance broking Maintenance of the training package is significantly influenced by the regulatory regimes that operate over a range of occupations in the finance sector. In particular, ASIC, the Tax Practitioners Board and the various State regulatory bodies overseeing conveyancing. Much of the focus during the year has been on specific aspects of regulation and ensuring that the training package is current and transparent. Focus for the future During , improvements to the training package will centre on specific developments associated with the provision of financial advice. Recent initiatives from ASIC, including Consultation Paper 153 Licensing: Assessment and professional development framework for financial advisers and Report 279 Shadow shopping study of retirement advice, as well as emerging requirements of The Australian Government Corporations Amendment (Future of Financial Advice) Bill 2011 will have an impact on training package content. The extent and scope of this impact will not be fully understood until the consultation is concluded and results published by ASIC, which is expected early in At that point appropriate steps will be taken with stakeholders to reflect any changes required to the training package. In IBSA also intends to commence a consultation process amongst stakeholders on the opportunities for higher level qualifications as a pathway for VET students within the training package. Changes in the AQF provide an ideal basis to develop a range of graduate level programs either as a pathway for VET students or as a development option for graduates into specialist occupations in the finance sector. Finally, Clean Energy legislation enacted during 2012 is anticipated to influence many occupations across industry in the coming years. While some specific activity driven by regulatory requirements is in the process of being addressed within the training package, it is anticipated that new requirements will emerge as policy in this area develops and industry becomes engaged. Development in this area will be closely monitored and responded to where necessary, to provide suitable qualifications for individuals and the workforce development needs of organisations. 24

29 Streamlining training packages In December 2010 the National Quality Council (NQC) endorsed the Design Model for Streamlined Training Packages, which was the culmination of more than two years research and consultation. The new design separates performance standards from guidance and supporting information and presents information within a training package in a simpler and more logical manner. Work has commenced to review the qualifications and units of competency to meet the streamlined requirements and to develop companion volumes containing advice to assist in the implementation of the IBSA training packages. Part of this preparatory work has included a series of workshops delivered by IBSA outlining the proposed changes and associated impact. It is anticipated that all qualifications and units of competency will be presented in the streamlined model by 30 June 2014 with regular information updates available on the project page. Uptake of training packages The following data are reported from the annual NCVER VET Provider Collection and the quarterly Apprentice and Trainee Collection; these data report publicly funded training and fee for service VET provided by public institutions. They will assist consideration of trends in the uptake and use of publicly funded VET in IBSA s training packages. It should be noted that significant amounts of training also occurs outside the publicly funded VET system including: fee for service training toward national qualifications provided by private training providers in-house training toward national qualifications delivered by enterprise RTOs, and non-accredited training conducted in house or by external providers. Attempts to directly correlate these tables of commencement and completion numbers should be avoided because: an enrolment is recorded for each year the course is active multiple enrolments are recorded when a course is undertaken over more than one year, and completions are not uniformly reported ie some jurisdictions only report completions when they award a certificate (rather than a Statement of Attainment) and this is only done when requested and paid for by the completing student. In the Financial Services industry, it is estimated that percent of training is privately funded, often by employers. After the mining industry, the finance and insurance industry appear to spend the most on training per employee. In 2002 this was calculated at $1,323 per year, compared to an average spend of $458 per year. 67 Nevertheless, the following data gives an indication of how public funds are being used to support the industry. These factors may result in an over reporting of enrolments and under reporting of completions. Course enrolments and qualifications issued Of the 12 IBSA training packages, Financial Services has had the third biggest number of enrolments in the last four years, after Business Services and ICT, with a total of 210,941 enrolments. Enrolments in Financial Services qualifications continued to rise in 2011, with an 11.7 percent increase between 2010 and 2011 as shown in Table 4 and Figure 8 below. This represents strong growth. The average growth per year in enrolments in IBSA training packages from was 8.7 percent. 67 ERTOA (2009) Profiling the Australian enterprise RTO: Summary report. Note that this figure comes from the 2002 ABS Employer Training Expenditure survey. This survey has not been repeated since then. 25

30 IBSA Environment Scan 2013 Table 4: Enrolments and qualifications issued in Financial Services Financial Services FNS Enrolments 45,934 50,269 54,191 60,547 % Change in Enrolment 9.4% 7.8% 11.7% Average % Change in Enrolments % Overall % Change in Enrolments % FNS Qualifications issued 10,363 12,860 13,357 13,207 % Change in Qualifications issued 24.1% 3.9% -1.1% Average % Change Qualifications issued % Overall % Change Qualifications issued % Source NCVER, VET Provider Collection Figure 8: Enrolments in Financial Services qualifications, ,547 54,191 50,269 45, % 7.80% 11.73% Source NCVER, VET Provider Collection Growth in numbers of qualifications issued in Financial Services declined slightly between 2010 and 2011 completions as shown in Figure 9. Reasons for this decline are unclear at this stage but it may have been a short term response to the global financial downturn, making a finance career look less attractive. Results for 2012 will indicate whether a decline in growth is likely to continue. Figure 9: Qualifications issued in Financial Services, ,860 13,357 13,207 10, % 3.86% -1.12% Source NCVER, VET Provider Collection

31 Enrolments in Financial Services Certificates III and below are decreasing whilst enrolments for Certificate IV and higher are increasing. The highest overall Financial Services enrolments are in Certificate IV. For 2011 the five Financial Services qualifications with the highest enrolments represented 57.0 percent of total course enrolments in that Package. These qualifications are listed in Table 6 below, with the total number of enrolments in brackets. Accounting qualifications were in strongest demand with the Diploma of Accounting being the most popular qualification. The five qualifications with the lowest enrolments are also listed in Table 5. Table 5: Business services qualifications: highest and lowest enrolments 2011 Highest enrolments Lowest enrolments FNS50204 Diploma of Accounting (9,013) FNB60202 Advanced Diploma of Accounting (1) FNS40604 Certificate IV in Financial Services (Accounting) (7,549) FNS30304 Certificate III in Financial Services (Accounts Clerical) (7,452) FNS40207 Certificate IV in Financial Services (Bookkeeping) (5,503) FNS30204 Certificate III in Insurance Services (1) FNS40504 Certificate IV in Financial Services (Insurance Assessment Services) (1) FNS40704 Certificate IV in Financial Services (Financial Practice Support) (1) FNS60204 Advanced Diploma of Accounting (4,991) FNS51210 Diploma of Insurance Broking 1 1 This qualification is however likely to show more significant use in arising from National Workforce Development Fund projects Sydney and Melbourne host a large share of the financial services businesses and NSW and Victoria have four or five times the number of enrolments of other states. There has been a spike in enrolments in these two states in Enrolments in other states have remained fairly constant or even declined slightly. See Figure 10 below. Figure 11 shows that enrolments are concentrated in major cities, with enrolment numbers growing fastest in major cities. However, there has also been reasonable growth in the inner regional areas. Figure 10: Enrolments by State and Territory in Financial Services qualifications, ,000 20,000 15,000 10,000 5,000 0 NSW VIC QLD SA WA TAS NT ACT Source: NCVER VET Provider Collection

32 IBSA Environment Scan 2013 Figure 11: Enrolments geographic location in Financial Services qualifications, , ,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Major cities Inner regional Outer regional Remote Overseas/ Unknown Source: NCVER VET Provider Collection Enrolment characteristics Figure 12 below shows that while about a third of students undertaking the qualifications in the Financial Services Training Package are school leavers, 13 percent already have a Bachelor degree or higher qualification. While there is growth in enrolments across all age groups, apart from the under 19s, the strongest growth in the last four years has been in the years age group. It is interesting to note that there are now more enrolments in the years age group than in the under 19 years age group. See Figure 13 below. Students under 19 only make up 10 percent of Financial Services Training Package enrolments, whereas they make up nearly a third of enrolments across all training packages. Figure 12: Previous highest education level of participants enrolled in Financial Services qualifications, % 13% 14% 3% 8% Bachelor degree or higher Advanced diploma Diploma Certificate IV 10% Certificate III Certificate II Certificate I 29% Year 12 0% 1% 15% Year 11 or below Unknown Source: NCVER VET Provider Collection

33 Figure 13: Enrolments by age in Financial Services qualifications, ,000 14,000 12,000 10,000 8,000 6,000 4,000 2, years and younger 20 to 24 years 25 to 29 years Source: NCVER VET Provider Collection to 39 years 40 to 49 years 50 to 59 years 60 years and over The Financial Services industry workforce is fairly balanced in terms of gender representation with slightly more women than men 53 percent versus 47 percent. However, women dominate enrolments in publicly funded VET Financial Services qualifications. In 2011, 72 percent of enrolments in the Financial Services training package were by women; see Figure 14. Figure 14: Enrolments in Financial Services qualifications by gender, 2008 Male Female 32,518 35,824 39,013 43,696 13,410 14,417 15,138 16, Source NCVER, VET Provider Collection Nearly a quarter of students in Financial Services qualifications undertake their study full time. This is a relatively high proportion of students. Across all VET courses, 15 percent undertake full time study. Half the delivery occurs off job at college; this is down from 61 percent in There is also now a growing proportion of students undertaking their study online, up 2 percent from last year; see Figure

34 IBSA Environment Scan 2013 Figure 15: Enrolments in Financial Services qualifications by study and delivery mode 2011 Study mode Delivery mode 77% 23% 15% 6% 50% 9% 20% Full-time Part-time College/Campus based Online/remote access Employment based Other Not applicable Source: NCVER VET Provider Collection Traineeships The Financial Services industry does not have a large number of trainees, with only 5,916 commencements in 2011, down slightly from 6,611 in As a proportion of the financial services workforce, trainees comprise only 1 percent. Other non trade industries have much higher numbers. Business Services, for example, has about 10 times as many trainees, accounting for about 9 percent of the business services workforce. Figure 16: Financial Services qualifications apprenticeships and traineeships commencements and completions ,521 Commenced 5,197 6,611 Completed 5,916 2,256 3,198 2,744 3, Source: NCVER, Apprentices and Trainees Collection, Outlook for training The changes flagged for the Financial Services Training Package in 2013 will address several key workforce trends, responding to changes in legislation on the provision of financial advice, the impact of the carbon tax and taking maximum advantage of recent AQF changes to create new opportunities for pathways into higher education. 30

35 There is also scope for stakeholders to review whether programs sufficiently integrate computer literacy, particularly in terms of giving students a foundation in data analysis and web and mobile based applications, so they can understand and use new technologies in the industry. Similarly, generic employability skills around communication and relationship management are increasing in importance for this industry; integrating these skills adequately into training programs will benefit students. The new employability skills framework includes the capacity to select and use tools, equipment and applications to promote efficiency and productivity. This may involve knowledge of, and the skills to use, Information and Communication Technology (ICT) relevant to a role. It also includes a range of elements around interacting with others including the capacity to exchange information and ideas. It involves skills in listening, observing, questioning and interpreting written, spoken and non verbal messages and verbalising in appropriate spoken and written forms 68. This framework, including approaches to assessment, is expected to be available for use by employers and training organisations from Decisions on where to focus training effort would be assisted by robust data on employer and other private expenditure on training in this industry; research on skills utilisation in the finance and insurance industry would also assist in targeting public training resources. Given the size of the industry, the importance to the Australian economy and the likelihood of skill shortages in key sectors of the industry, any investment in discovering more about how training can benefit the industry and improve productivity are well justified. 68 Ithaca Group (2012) Employability Skills Framework: Stage 1 Final Report 31

36 IBSA Environment Scan

37 Chapter 5 Future directions The following table summarises the workforce development challenges in this industry: Table 6: Workforce development challenges Workforce development challenge: Need for better communication and relationship management skills due to customer focus Impact on: All businesses Critical future skills: Employability skills Customer focus Negotiation Marketing Cultural competence Advice skills Increasing regulation All businesses Auditing Risk management Corporate governance Strategic planning Understanding of regulatory and legal environment Compliance management Quality assurance Carbon tax accounting and reporting Need for computer literacy All businesses Data analysis Social media including responsible use of security of networks and information, including cloud computing Management and leadership All businesses Ethics Supervisor skills Mentoring skills Change leadership Education and training Introduction The Financial Services industry is undergoing a period of significant change as it emerges from the global financial downturn. New regulations affecting a number of sectors in the industry are being implemented concurrently. Technology continues to advance at a rapid pace offering new opportunities for businesses that can get on board. The Asian Century will see an increasing need for cross cultural communication and partnerships; and the drive for sustainable business practices is starting to have a real impact on the industry. Businesses need strong leaders to guide them through these changes and to ensure that staff have the appropriate skills, knowledge and professional judgement to work in the new environment. As a result, industry is seeing a need for both greater knowledge and analytical skills, which traditionally have been delivered by tertiary education for this industry, along with vocational, industry based skills, including employability skills. Contextualised, enterprise specific skills continue to be important in this industry and could potentially be addressed through skill sets, particularly if they contribute to achievement of pathways to higher qualifications. However, the lack of data on employer and other private expenditure and skills utilisation in the industry makes it difficult to be sure about where to target training effort. A1

38 IBSA Environment Scan 2013 Priorities for IBSA training packages Findings from Escan 2013 indicate that priorities for the Financial Services Training Package working with industry stakeholders are: Respond to specific changes in legislation including on the provision of financial advice, the impact of the carbon tax and stronger superannuation reforms. Supporting a responsive national VET system To assist in enhancing the responsiveness of the national VET system and maximising industry skills outcomes, findings from Escan 2013 suggest stakeholders consider: gathering robust data on employer and other private expenditure on training in the Financial Services industry, as well as research on skills utilisation, to assist in targeting public training resources implementing flexible work practices and retention and retraining strategies to respond to labour market tightening and the need for the retention of critical knowledge ensuring training delivery effectively includes and assesses employability skills, using the new employability skills framework, and more collaboration between VET and higher education sectors to ensure career pathways are transparent, seamless and respond to identified industry needs. A2

39 Appendix A Methodology and Bibliography Methodology and stakeholder input Statistical information for this report was gathered through a desktop research process from a range of sources as indicated in the bibliography. Further input into this Escan was gathered from industry stakeholders via a series of consultation forums held in Forums were held in Adelaide, Brisbane, Canberra, Melbourne, Perth, Sydney and a webinar gathered views from regional stakeholders as well as the other states and territories. Survey tools were used at each of the forums to gather information from participants, including advice on occupations in demand. This Escan was validated by IBSA s Industry Advisory Committee and State and Territory Advisory Network representatives in October The following organisations have made valuable contributions to the 2013 Escans: AC Arts SA government Ban Teck Han (BTH Group) Academies Australasia Group Bev Orr ACT Education & Training Directorate Bon Velo Arts, Communications, Finance Industries and Brefney Enterprises Property Services (ACFIPS) Bridge Business College Australian Centre for Work Safety Brisbane North Institute of TAFE (BNIT) Australian Computer Society (ACS) Business Higher Education Round Table Australian Computer Society Education Business Services Industry Skills Board SA Inc (ACSeducation) Business Skills Victoria/Viability Australian Council for Educational Research C.Y. O Connor Institute Australian Council for Private Education and Camp Australia Training (ACPET) Canberra Institute of Technology Australian Entertainment Industry Association trading as Live Performance Australia Capital Careers Australian Financial Markets Association (AFMA) Captain Cook College Central TAFE, representing TAFE Directors Australia Australian Government Information Management Office Australian Human Resources Institute (AHRI) Australian Industry and Defence Network Northern Territory Australian Industry Group (AIG) Australian Information Industry Association Australian Institute of Credit Management Australian Institute of Management WA (AIM WA) Australian Institute of Management NSW & ACT (AIM NSW & ACT) Australian Institute of Management SA (AIM SA) Australian Library and Information Association (ALIA) Australian Manufacturing Workers Union Print Division Australian Marketing Institute Australian Securities and Investments Commission Australian Services Union ASU Central West Business Enterprise Centre (BEC) Centre for Excellence in Child and Family Welfare CESA Institute CHARTTES Cultural, Recreation & Tourism Training Advisory Council NT Churchill Education CITEC, QLD Government Communications and Information Technology Training (CITT) Communications, electrical, plumbing union (CEPU) Community Arts Network SA Community College Gippsland Computing Technology Industry Association CompTIA Creative Industries Skills Council Creative Industries Skills Council QLD Crown Institute of Business and Technology A3

40 IBSA Environment Scan 2013 (CIBT) Department of Corrective Services (DCS) Department of Education and Early Childhood Development (DEECD) Department of Education WA Department of Further Education, Employment, Science and Technology (DFEEST) Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE) Department of Transport WA Dept of Commerce WA DevelopMental DGIT Consultants Pty Ltd Digital Economy Branch, Department of Commerce, WA Document Printing Australia Durie Consulting Dynamic Eco-Solutions Energy Skills Qld Enterprise RTO Association (ERTOA) EPIC Industry Training Board Finance Sector Union Financial Administrative and Professional Services Training Council (FAPSTC) Financial Planning Association (FPA) Fuji Xerox Australia FutureNow Creative and Leisure Industries Training Council FutureStaff Game Developers Association of Australia Gold Coast Institute of TAFE Group Training Australia (SA) Heidelberg Print Help Enterprises Heritage Bank Holmesglen Housing Industry Association (HIA) Hudson Recruitment Ian Dennis Independent Schools Victoria Infoprojekt Consulting Institute of Public Accountants Insurance Australia Group Integrators Intellitrain International Institute of Business and Information Technology (IIBIT) JB Hunter Technology JMC Academy Kangan Institute Lane Print Group Learning Advisory Services Australia Lexdata Library Training Services Australia Lightmare Studios Linda Simon Macquarie Education Group Australia Master Builders Association Group Training (MBA Group Training) Media, Entertainment & Arts Alliance Metropolitan Fire Brigade Metropolitan South Institute of TAFE Michael Brough Michel Hedley Microsoft MiDel Education Milcom Communications Money101 Musicians Union of Australia National Association for the Visual Arts National Roads & Motorists Association (NRMA) National Safety Council of Australia National Training Organisation NBN Co New Cambridge College Sydney New Horizons Learning Centre North Coast TAFE NT Retail Industry Training Council Inc. trading as Service Industries Training Advisory Council Office of the Chief Information Officer SA Open Channel Open Colleges Patrick Cullen Personal Injury Education Foundation Pharmaceutical Society of Australia Pivotal Training & Development Print NZ Printing Industries Association of Australia (PIAA) Professional Training & Assessment (PTA) Prografica QANTAS Airways Limited Quest Training Solutions Radio Adelaide Training Richard Brooks RMIT University Rodney Piper Ruth Smiles A4

41 SALMAT Self-Managed Super Fund Professional s Association of Australia Service Industries Training Advisory Council Service Skills SA Service Skills SA Shafston College SKILLED Group Skilled Up smallprint SMR Learning Services Society of Motion Picture and Television Engineers State Training Services NSW Department of Education and Communities Sterling Business College Subrosa Solutions Suncorp Suzy McKenna Sydney College of Business & IT Sydney Community College Sydney Institute TAFE Development Centre TAFE English Language & Literacy Services (TELLS) TAFE NSW TAFE SA TAFE teacher Talent2 Taryn Scanlon Telstra The Association of Superannuation Funds of Australia The Australian and New Zealand Institute of Insurance and Finance The Centre for Excellence in Child and Family Welfare The Financial Services Council The Gordon The Malka Group Tim Dein & Associates Transport Training Centre (TTC) True North Education & Training TRY Australia Untapping Unlimited Possibilities Victoria University Victorian Curriculum and Assessment Authority Victorian Employers Chamber of Commerce and Industry Vostro Institute of Training Australia West Coast Institute of Training Westpac Women in Film and Television WorkVentures A5

42 IBSA Environment Scan 2013 Bibliography Access Economics (2010) Economic outlook for specific Victorian industries, report for Skills Victoria, AQF Council (2012) Review of the Graduate and Vocational Graduate Certificate and Diploma qualification types. Communique. ASIC (2010) Access to Financial Advice in Australia, Report 224, LookupByFileName/rep224.pdf/$file/rep224.pdf ASIC (2011) Licensing: Assessment and professional development framework for financial advisers. Consultation paper ASIC (2012) Licensing: Training of financial product advisors, Regulatory Guide 146, gov.au/asic/asic.nsf/byheadline/regulatory+guide+146%3a+licensing%3a+training+of+financial+ product+advisers ASIC (2012) Shadow shopping survey on retirement advice, Report 279, nsf/lookupbyfilename/rep279-published-27-march-2012.pdf/$file/rep279-published-27-march-2012.pdf Austrade (2010) Investment Management Industry in Australia. Survey of Investment and Financial Services Association members, Austrade (2012) Australia corporate finance activities remain strong Data Alert 17 January 2012, Austrade (2012) Australia remains home to the Asia-Pacific s third largest HNWI population Data Alert 2 July Austrade (2012) Financial sector the largest contributor to Australia s economy Data Alert 19 January Australian Bureau of Statistics (2012) Australian National Accounts: National Income, Expenditure and Product. Cat. No June Australian Bureau of Statistics (2012) Managed Funds, Australia. Cat. No December Australian Institute of Credit Management (2012) Credit Industry Major Legislation Reforms, legislation.aicm.com.au/index.php/privacy-act/ Australian Workforce and Productivity Agency (2010) Australian Workforce Futures: a national workforce development strategy, Business Skills Victoria (2011) Industry Skill Needs Report 2011, PageContent/Files/2011_BSV_Industry_Needs_Report.pdf Castelli, A (2004) ICT practitioner skills and training: banking and financial services, CEDEFOP. Deloitte Access Economics (2012) ITAB Market Effectiveness Report, Skills Victoria. Department of Education, Employment and Workplace Relations (2012) Australian Jobs. deewr.gov.au/employment/researchstatistics/pages/australianjobs.aspx Department of Prime Minister and Cabinet (2011) Australia in the Asian Century issues paper, December Department of Treasury (2012) Stronger Super: overview of reforms. strongersuper.treasury.gov.au Enterprise RTO Association (2009) Profiling the Australian enterprise RTO: Summary report, October A6

43 Ernst and Young (2012) IFRS Outlook August Outlook_August2012/$FILE/Outlook_August2012.pdf Gushn, M. (2012) The Asia Region Funds Passport pipedream or pipeline? McMahon Clarke, 20 February Harris, R. et al (2005) Student traffic: two way movement between VET and higher education. NCVER. Henry, K. (2012) Australia in the Asian Century, Presentation to the AiGroup National Forum 20 August ContentDeliveryServlet/LIVE_CONTENT/National%2520Forum/2012/Henry.pdf IBISWorld (2012) Industry Report K7322 Building Societies in Australia June IBISWorld (2012) Industry Report K7322 Health Insurance in Australia Aug IBISWorld (2012) Industry Report K7323 Credit Unions in Australia Apr IBISWorld (2012) Industry Report K7325 National and Regional Commercial Banks in Australia Apr IBISWorld (2012) Industry Report K7326 Foreign Banks in Australia May IBISWorld (2012) Industry Report K7330 Securitisation Vehicles in Australia Mar IBISWorld (2012) Industry Report K7411 Life Insurance in Australia Apr IBISWorld (2012) Industry Report K7412 Superannuation Funds in Australia Apr IBISWorld (2012) Industry Report K7422 General Insurance in Australia June IBISWorld (2012) Industry Report K7515 Financial Planning and Investment Advice in Australia May IBISWorld (2012) Industry Report K7515 Funds Management (except superannuation funds) Apr IBISWorld (2012) Industry Report K7519 Stock Exchange and Share Registry services in Australia Apr IBISWorld (2012) Industry Report K7521 Superannuation Funds Management in Australia Aug IBISWorld (2012) Industry Report K7521 Superannuation funds management in Australia Apr IBISWorld (2012) Industry Report K7522 Insurance Brokerage in Australia June IBISWorld (2012) Industry Report L7842 Accounting Services in Australia May IBISWorld (2012) The Clean Energy Plan and Australia s industries June IBSA (unpublished) Superannuation workforce development strategy discussion paper, September IBSA (2011) Impact of the Digital Economy and the National Broadband Network on Skills, International Data Corporation (2012) Australia Banking, Financial Services and Insurance ICT Market Forecast and analysis July Ithaca Group (2009) Not for the faint hearted: developing sustainable pathways from VET to higher education in the Agrifood industry, Agrifood Skills Australia. Ithaca Group (2012) Employability Skills Framework: Stage 1 Final Report. Report for DEEWR. EmployabilitySkillsFramework_Stage1FinalReport.pdf. A7

44 IBSA Environment Scan 2013 Jackson and Chapman (2010) Graduate Business Skills Sets Summary report au/schooling/careersandtransitions/employabilityskills/documents/employabilityskillsframework_ Stage1FinalReport.pdf, University of WA. Kambhampaty, S. & Konduru S. (2012) Financial Services Innovation in the ICT Engine Room: Innovate or perish, Australian Information Industry Association. KPMG (2008) Sustainability: reporting a guide. SustainabilityRep pdf Mills, J, Bowman, K, Crean, D, Ranshaw, D. (2012) Workforce skills development and engagement in training through skill sets: literature review, NCVER. National Institute of Economic and Industry Research (2012) Off-shore and Off Work: The future of Australia s service industries in a global economy, a report for the service sector unions, September 2012 NCVER (2012) Apprentices and Trainees Collection, NCVER (2012) VET Provider Collection Nossal Institute for Global health (2011) People, Productivity, Planet: business sustainability report. Parliamentary Joint Committee and Corporations and Financial Services (2012) Corporations Amendment (Future of Financial Advice) Bill 2011 and Corporations Amendment (Further Future of Financial Advice Measures) Bill 2011, 29 February PhillipsKPA (2006) Giving credit where credit is due: final report. Report for the Department of Education Science and Training. June_2006_FINAL.pdf Price WaterhouseCoopers (2010) Asia Region Funds Passport: the future of the funds management industry in Asia. PriceWaterhouseCoopers (2012) Delivering solid, not spectacular growth Major Banks Perspectives May Rice Warner Actuaries (2012) The Financial Advice Industry Post-FOFA, Rice Warner Actuaries, January 2012, cited in Parliamentary Joint Committee on Corporations and Financial Services (2012) Corporations Amendment (Future of Financial Advice) Bill 2011 and Corporations Amendment (Further Future of Financial Advice Measures) Bill Robert Half Finance and Accounting (2012) Asia Pacific Banking and Financial Services Salary Guide , APAC%20FSG%20Salary%20Guide%202010_2011-%20SG%20.pdf. Robert Walters (2012) Global Salary Survey 2012, Swan. W. (2012) Making this the Australian century in Asia. Speech delivered at The Prime Minister s Economic Forum 12 June aspx?doc=speeches/2012/016.htm&pageid=003&min=wms&year=2012&doctype=1 TAFE NSW (2012) The best of both worlds: a significant tertiary pathway for students. highered.tafensw.edu.au/documents/best-of-both-worlds.pdf A8

45 Appendix B Financial services occupations in demand IBSA reports critical occupations in demand to Government and industry stakeholders. This alphabetical list reflects demand in the Financial Services industry for occupations and job roles reported at IBSA s Escan industry consultations and validations conducted in 2012; underpinning industry intelligence and research were also incorporated into this list. Qualifications that correspond to the occupations in demand are also provided. The bold occupations and job roles are newly reported occupations in demand. A more comprehensive list which includes pathways is available on our website at Table 7: Financial Services occupations in demand ANZSCO Occupation/job role Training package qualification Accounting assistant/ Accounts officer FNS30311 FNS40611 Cert III in Accounts Administration Cert IV in Accounting FNS40211 Cert IV in Bookkeeping FNS40111 Cert IV in Credit Management FNS40710 Cert IV in Financial Practice Support FNS50210 Diploma of Accounting FNS60110 Advanced Diploma of Accounting Accountant FNS40211 FNS40611 FNS40710 Cert IV in Bookkeeping Cert IV in Accounting Cert IV in Financial Practice Support FNS50210 Diploma of Accounting FNS60210 Advanced Diploma of Accounting Auditor accounts, including carbon FNS30311 FNS40211 Cert III in Accounts Administration Cert IV in Bookkeeping FNS40310 Cert IV in Credit Management FNS40611 Cert IV in Accounting FNS50210 Diploma of Accounting FNS60210 Advanced Diploma of Accounting Bank Workers retail, commercial, wholesale and mutual FNS30111 FNS30311 BSB40207 Cert III in Financial Services Cert III in Accounts Administration Cert IV in Business BSB40311 Cert IV in Customer Contact BSB40607 Cert IV in Business Sales BSB50207 Diploma of Business BSB50311 Diploma of Customer Contact BSB60207 Advanced Diploma of Business FNS40111 Cert IV in Credit Management FNS51511 Diploma in Credit Management FNS40811 Cert IV in Finance and Mortgage broking B1

46 IBSA Environment Scan 2013 ANZSCO Occupation/job role Training package qualification Bookkeepers FNS30111 FNS30311 FNS40211 Cert III in Financial Services Cert III in Accounts Administration Cert IV in Bookkeeping Customer and client services, including personal banker, teller, home finance manager, bank manager and bank to bank staff FNS30111 FNS30311 BSB40207 BSB40311 FNS40111 Cert III in Financial Services Cert III in Accounts Administration Cert IV in Business Cert IV in Customer Contact Cert IV in Credit Management BSB40607 Cert IV in Business Sales BSB50207 Diploma of Business FNS51511 Diploma of Credit Management BSB50311 Diploma of Customer Contact BSB60207 Advanced Diploma of Business4 FNS40111 Cert IV in Credit Management FNS51511 Diploma in Credit Management FNS40811 Cert IV in Finance and Mortgage Broking Risk manager/analyst FNS50811 FNS60811 Diploma of Integrated Risk Management Advanced Diploma of Integrated Risk Management FNS30111 Cert III in Financial Services FNS40310 Cert IV in Personal Injury Management (Claims Management) FNS40410 Cert IV in Personal Injury Management (Return to Work) FNS50110 Diploma of Personal Injury Management FNS50811 Diploma of Integrated Risk Management Finance manager FNS40710 FNS50210 FNS50311 FNS50511 FNS50611 FNS51011 FNS50910 Cert IV in Financial Practice Support Diploma of Accounting Diploma of Finance and Mortgage Broking Management Diploma of Personal Trustees Diploma of Financial Planning Diploma of Financial Markets Diploma of Banking Services Management Financial brokers FNS40811 FNS50311 Cert IV in Finance and Mortgage Broking Diploma of Finance and Mortgage Broking Management B2

47 ANZSCO Occupation/job role Training package qualification Financial planners Share dealers BSB40207 BSB40607 Cert IV in Business Cert IV in Business Sales BSB40311 Cert IV in Customer Contact BSB50207 Diploma of Business BSB50311 Diploma of Customer Contact BSB60207 Advanced Diploma of Business FNS50611 Diploma of Financial Planning FNS60410 Advanced Diploma of Financial Planning FNS40911 Cert IV in Superannuation FNS50711 Diploma of Superannuation FNS51011 Diploma of Financial Markets FNS60510 Advanced Diploma of Superannuation FNS60811 Advanced Diploma of Integrated Risk Management Financial services administrator Credit and loan officer Financial investment adviser Superannuation funds manager FNS30111 FNS30311 FNS40111 FNS41110 FNS41811 FNS51710 FNS51811 FNS40811 FNS50611 FNS60410 Cert III in Financial Services Cert III in Accounts Administration Cert IV in Credit Management Cert IV in Financial Markets Operations Cert IV in Financial Services Diploma of Anti-Money Laundering and Counter Terrorism Financing Management Diploma of Financial Services Cert IV in Finance and Mortgage Broking Diploma of Financial Planning Advanced Diploma of Financial Planning Insurance agents FNS41710 FNS51210 FNS60110 Cert IV in Insurance Broking Diploma of Insurance Broking Advanced Diploma of Insurance Broking Insurance investigators and loss adjusters FNS30311 FNS40111 FNS40510 Cert III in Accounts Administration Cert IV in Credit Management Cert IV in Personal Injury Management (Underwriting) FNS40811 Cert IV in Finance and Mortgage Broking FNS41611 Cert IV in Loss Adjustment FNS50110 Diploma of Personal Injury Management FNS51410 Diploma of Loss Adjustment FNS50811 Diploma of Integrated Risk Management B3

48 IBSA Environment Scan 2013 ANZSCO Occupation/job role Training package qualification Insurance, money market and statistical clerk FNS30210 FNS40310 FNS41710 FNS51210 FNS60110 Cert III in Personal Injury Management (Claims Management) Cert IV in Personal Injury Management (Claims Management) Cert IV in Insurance Broking Diploma of Insurance Broking Advanced Diploma of Insurance Broking B4

49 Appendix C NCVER data Table 8: Enrolments in Financial Services (FNB/FNS) Qualifications FNS Financial Services (includes FNA, FNB) Enrolments Accounting FNB40602/FNS40604/FNS40610 Certificate IV in Accounting 9,816 11,134 11,497 11,315 FNB50299/FNB50202/FNS50204/FNS50210 Diploma of Accounting 9,473 10,516 11,562 12,231 FNB60202/FNS60204/FNS60210 Advanced Diploma of Accounting 6,474 6,234 6,336 6,221 Administration FNS30304 Certificate III in Financial Services (Accounts Clerical) 11,910 12,323 11,229 7,452 FNS30310 Certificate III in Accounts Administration 2,519 Banking FNS41010 Certificate IV in Banking Services 172 FNS50910 Diploma of Banking Services Management 239 FNS51204 Diploma of Financial Services (Banking) FNS60610 Advanced Diploma of Banking Services Management 11 Bookkeeping FNS40207/FNS40210 Certificate IV in Bookkeeping 505 1,951 4,976 7,711 Conveyancing FNS50604 Diploma of Financial Services (Conveyancing) FNB60301/FNS60304/FNS60310 Advanced Diploma of Conveyancing Credit Management FNS40304/FNS40110 Certificate IV in Credit Management FNS51510 Diploma of Credit Management 8 Financial Markets FNS41110 Certificate IV in Financial Markets Operations 10 Financial Planning FNS50804/FNS50610 Diploma of Financial Planning ,019 1,286 FNS60404/FNS60410 Advanced Diploma of Financial Planning Financial Services FNS10104/FNS10110 Certificate I in Financial Services FNS20104/FNS20110 Certificate II in Financial Services FNB30199/FNS30104 Certificate III in Financial Services FNS30107/FNS ,977 3,541 3,282 2,592 FNS40104/FNS40107 Certificate IV in Financial Services 1, ,447 FNS50104/FNS50107 Diploma of Financial Services FNS60104 Advanced Diploma of Financial Services C1

50 IBSA Environment Scan 2013 FNS Financial Services (includes FNA, FNB) Enrolments Insurance FNS30204/FNS30610 Certificate III in Insurance Services FNS30510 Certificate III in General Insurance 12 FNS41410 Certificate IV in General Insurance 5 FNS51210 Diploma of Insurance Broking 3 Mercantile Agent FNS30404/FNS30410 Certificate III in Mercantile Agents Mortgage Broking FNS40804/FNS40810 Certificate IV in Finance and Mortgage Broking 913 1, FNS50504/FNS50310 Diploma of Finance and Mortgage Broking Management Personal Injury Claims Management FNS30210 Certificate III in Personal Injury Management (Claims Management) FNS40310 Certificate IV in Personal Injury Management (Claims Management) FNS50110 Diploma of Personal Injury Management 37 Superannuation FNS40910 Certificate IV in Superannuation 12 FNS50710 Diploma of Superannuation 7 Workers Compensation FNS30507 Certificate III in Financial Services (Workers Compensation) FNS41007 Certificate IV in Financial Services (Workers Compensation) FNS51407 Diploma of Personal Injury Management (Workers Compensation) C2

51 Table 9: Qualifications Issued in Financial Services (FNB/FNS) FNS Financial Services (includes FNA, FNB) Qualifications issued Accounting FNB40602/FNS40604/FNS40610 Certificate IV in Accounting 1,721 2,001 2,183 1,894 FNB50299/FNB50202/FNS50204/FNS50210 Diploma of Accounting 1,699 2,189 2,487 2,376 FNB60299/FNB60202/FNS60204/FNS60210 Advanced Diploma of Accounting 1,445 1,487 1,469 1,367 Administration FNB30302/ Certificate III in Financial Services (Accounts Clerical) FNS ,502 3,005 2,776 1,856 FNS30310 Certificate III in Accounts Administration 766 Banking FNS41010 Certificate IV in Banking Services 55 FNS50910 Diploma of Banking Services Management 107 FNS51204 Diploma of Financial Services (Banking) FNS60610 Advanced Diploma of Banking Services Management 6 Bookkeeping FNS40207/FNS40210 Certificate IV in Bookkeeping ,345 1,581 Conveyancing FNB50601/FNS50604 Diploma of Financial Services (Conveyancing) FNB60301/FNS60304/ Advanced Diploma of Conveyancing FNS Credit Management FNS40304/FNS40110 Certificate IV in Credit Management Financial Markets FNS41110 Certificate IV in Financial Markets Operations 4 Financial Planning FNS50804/FNS50610 Diploma of Financial Planning FNS60404 Advanced Diploma of Financial Services (Financial Planning) Financial Services FNS10104/FNS10110 Certificate I in Financial Services FNS20104 Certificate II in Financial Services FNB30199/FNS30104/ Certificate III in Financial Services FNS30107/FNS ,100 1,452 1,293 1,006 FNB40199/FNS40104/FNS40107 Certificate IV in Financial Services FNS50104/FNS50107 Diploma of Financial Services FNS60104 Advanced Diploma of Financial Services C3

52 IBSA Environment Scan 2013 FNS Financial Services (includes FNA, FNB) Qualifications issued Mercantile Agent FNS30404/FNS30410 Certificate III in Mercantile Agents Mortgage Broking FNS40804/FNS40810 Certificate IV in Finance and Mortgage Broking FNS50504/FNS50310 Diploma of Finance and Mortgage Broking Management C4

53 C5

54 IBSA Environment Scan 2013 C6

55

56 e w t f