Financial Services
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Note that the information, views and recommendations in this document have been obtained under contract from industry sources as part of Industry Advisory Arrangements; they may include data or information which have not been otherwise verified, and they should not be interpreted as being the views, intentions or policy of OPCET or the Tasmanian Government. INDUSTRY TRAINING DEMAND PROFILE FINANCIAL SERVICES Contents Scope of Financial Services TDP ..................................................................................... 2 Part 1 Industry background and directions................................................................... 7 Part 2 Skill shortages .................................................................................................. 13 Part 3 Industry demand for training ...........................................................................15 Part 4 Assessment of physical infrastructure needs ..................................................... 32 Part 5 Information on VET in schools, including school based new apprenticeships ................................................................................................ 33 Part 6 Industry’s top priorities for the public training system.....................................34 Part 7 Higher education .............................................................................................. 37 Appendix 1: The ABS Australian Standard Geographical Classification (ASGC) Map .................................................................................................................. 38 References .................................................................................................................... 39 Updated February 2007 Page 1 of 40 Industry Training Demand Profile –Financial Services Scope of Financial Services TDP Industry sectors and core occupations Finance and Insurance Services ANZIC Codes The Australian and New Zealand Standard Industrial Classification codes on which this TDP is based are: Division K - Finance and Insurance Subdivision 73 - Finance 731 Central Bank 732 Deposit Taking Financiers 733 Other Financiers 734 Financial Asset Investors Subdivision 74 - Insurance 741 Life Insurance and Superannuation Funds 742 Other Insurance Subdivision 75 - Services to Finance and Insurance 751 Services to Finance and Investment 752 Services to Insurance Subdivision 78 - Business Services 7842 Accounting Services Finance and Insurance Services ASCO Codes The Australian Standard Classification of Occupations (ASCO) codes on which this TDP is based are: 22 Business and Information Professionals 221 Accountants, Auditors and Corporate Treasurers 229 Miscellaneous Business and Information Professionals 32 Business and Administration Associate Professionals 321 Finance Associate Professionals 329 Miscellaneous Business and Administration Associate Professionals 59 Other Advanced Clerical and Service Workers 591 Advanced Numerical Clerks 599 Miscellaneous Advanced Clerical and Service Workers Updated February 2007 Page 2 of 40 Industry Training Demand Profile –Financial Services 61Intermediate Clerical Workers 611 General Clerks 619 Miscellaneous Intermediate Clerical Workers 81Elementary Clerks 811 Elementary Clerks Training Package coverage The Financial Services Training Package FNS04 (released 7 October 2004, for review 31 October 2007) provides generic qualifications and specialist qualifications. The 24 sectoral specialist areas that allow for the development of specialised competencies are: Accounting Compliance Credit/Lending Services Finance/Mortgage Broking Financial Markets General Insurance Insurance Services Life Insurance Mercantile Agents Practice Management Risk Management Superannuation Banking Conveyancing Debt Management Financial Literacy Financial Planning Insurance Broking Life Distribution Loss Adjusting Personal Trustees Retail Self Managed Superannuation Workers Compensation The FNS04 Financial Services Training Package builds upon and supersedes the previously endorsed Financial Services Training Package (FNB99). Qualifications and courses within Training Package(s) The qualifications and courses that comprise the Training Package are as follows: Certificate I FNS10104 Certificate I in Financial Services Certificate II FNS20104 Certificate II in Financial Services Certificate III FNS30104 Certificate III in Financial Services Updated February 2007 Page 3 of 40 Industry Training Demand Profile –Financial Services FNS30204 Certificate III in Insurance Services FNS30304 Certificate III in Financial Services (Accounts Clerical) FNS30404 Certificate III in Financial Services (Mercantile Agents) Certificate IV FNS40104 Certificate IV in Financial Services FNS40204 Certificate IV in Financial Services (Personal Trust Administration) FNS40304 Certificate IV in Financial Services (Credit Management) FNS40404 Certificate IV in Insurance Services FNS40504 Certificate IV in Financial Services (Insurance Assessment Services) FNS40604 Certificate IV in Financial Services (Accounting) FNS40704 Certificate IV in Financial Services (Financial Practice Support) FNS40804 Certificate IV in Financial Services (Finance/Mortgage Broking) FNS40904 Certificate IV in Financial Services (Superannuation) Diploma FNS50104 Diploma of Financial Services FNS50204 Diploma of Accounting FNS50304 Diploma of Financial Services (Insurance Broking) FNS50404 Diploma of Insurance Services FNS50504 Diploma of Financial Services (Finance/Mortgage Broking Management) FNS50604 Diploma of Financial Services (Conveyancing) FNS50704 Diploma of Financial Services (Personal Trustees) FNS50804 Diploma of Financial Services (Financial Planning) FNS50904 Diploma of Financial Services (Superannuation) FNS51004 Diploma of Financial Services (Financial Markets) FNS51104 Diploma of Financial Risk Management FNS51204 Diploma of Financial Services (Banking) FNS51304 Diploma of Financial Services (Consumer Education) Advanced Diploma FNS60104 Advanced Diploma of Financial Services FNS60204 Advanced Diploma of Accounting FNS60304 Advanced Diploma of Financial Services (Conveyancing) Updated February 2007 Page 4 of 40 Industry Training Demand Profile –Financial Services FNS60404 Advanced Diploma of Financial Services (Financial Planning) FNS60504 Advanced Diploma of Financial Services (Superannuation) Registered Training Organisations for the Financial Services Training Package The training organisations registered to deliver the Financial Services Training Package in Tasmania appear in Table 1, however, it should be remembered that many of these do not actually deliver in this state. Currently, the largest provider of Financial Services training is the Institute of TAFE Tasmania. TDP Methodology This TDP employed the following methodology: Desk research of documents in the public domain (listed in the References). Commissioned data runs by the Australian Bureau of Statistics (ABS) as well as published ABS data and reports. In some instances the data presented in this report is at an aggregate state level because analysis at a Local Government Area and ABS industry level introduced significant error due to definitional changes and low numbers. Special data runs from the statistical databases of the Office of Post-Compulsory Education and Training (OPCET). Qualitative data was gathered by 35 semi-structured telephone or face-to-face interviews with industry personnel using a standard survey instrument. This data was then subjected to content and thematic analysis. Updated February 2007 Page 5 of 40 Industry Training Demand Profile –Financial Services Table 1: Registered Training Organisations Registered to Deliver the Financial Services Training Package in Tasmania Code Title 51428 90166 90945 91146 21290 90775 90242 90908 91025 90755 50 1441 91110 6263 241 21272 90125 60086 40042 90815 90970 21736 7144 3752 21431 50036 21138 90833 90190 2123 60054 3872 90191 90743 90053 90822 90668 60103 1469 40126 3397 90791 1361 3945 411 21310 60113 90140 21487 21818 21683 90281 6556 30879 3059 4819 21024 3596 21827 90796 90116 51181 5548 90688 1126 AAMC Training Group Academy of Learning Access Community Group Ltd Accounting College, The Adcom Training Solutions AFMA AMP Financial Planning Amstar Learning Archer College ASFA Australian Army Australian College of Commerce & Management Pty Ltd Australian College QED Australian Institute of Credit Management Australian Institute of Management (SA) Australian Institute of Superannuation Trustees Inc. Australian Institute of Workplace Learning Australia-Tasmania College of Technology Pty Ltd Automotive Business College Commonwealth Bank of Australia Cornell Institute of Business & Technology Corporate Training Australia Pty Ltd CPA Australia DeakinPrime Dover Financial Training Pty Ltd Ed French and Associates Financial Services Training and Assessment Pty Limited Finsia Education FutureStaff Ltd Hobart City Council HR Company Pty Ltd IE Learning and Development Centre Illawarra Business College, The Impact Training Institute Pty Ltd Institute of Financial Services Inc Insurance Australia Group Services Pty Ltd Inter-Continental College of Business, The Island Training Tasmania Jarrah HR Consulting John Thomas and Associates Learning Partners Pty Ltd Map Training Pty Ltd McMillan Staff Development Pty Ltd MEGT Institute MST Workplace Solutions Network Training Australia Pty Ltd NGT Tasmania NIBA College of Insurance & Risk Professionals Origin Human Resources PLAN CONNECT Pty Ltd PS 146 Training Australia Quantum Financial Services RAPID Training Australia Response Learning Swinburne University of Technology (TAFE Division) TAFE Tasmania Technology Institute of Victoria Pty Ltd The Australian and New Zealand Institute of Insurance and Finance The Carlyle Institute of Professional Studies Thomson Education Direct Tribeca Learning (Aust) Pty Ltd Wesfarmers Federation Insurance Limited Westpac Banking Corporation Woolworths Ltd Work & Training Limited Updated February 2007 Registered State Delivery State WA NSW NSW NSW VIC NSW NSW NSW NSW NSW ACT NSW NSW NSW SA VIC NSW TAS SA NSW NSW VIC VIC VIC VIC WA VIC NSW NSW TAS TAS VIC NSW NSW NSW NSW NSW TAS SA SA TAS NSW ACT VIC TAS VIC TAS NSW VIC VIC VIC NSW NSW QLD VIC TAS VIC VIC VIC NSW NSW WA VIC NSW TAS NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, WA, TAS, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT TAS NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT TAS TAS NSW, VIC, TAS NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, TAS, ACT TAS NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, TAS NSW, VIC, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT VIC, TAS TAS NSW, VIC, QLD, SA, WA, TAS, NT, ACT TAS NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, QLD, TAS NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS NSW, VIC, QLD, SA, WA, TAS, NT, ACT NSW, VIC, QLD, SA, WA, TAS, NT, ACT TAS Page 6 of 40 Industry Training Demand Profile –Financial Services Part 1 Industry background and directions Industry trends Australia In Australia, the financial services industry has become a major contributor to the economy and offers numerous career choices. A key national strategic direction fostered by the Australian Government is to position Australia as a global financial services centre in the Asian time zone. Besides leveraging the time-zone advantage, Australia has one of the strongest performing economies in the world and the robustness of the economy is one of the attractions of Australia as a global financial services centre in the Asian time zone. The implications of this include the need to continually have the right skills mix at all levels for effectiveness at both domestic and global levels. Today there isn’t a universal framework understanding of the Financial Services Industry in Australia. The ABS sub-divides the Finance and Insurance industry into three segments: o Finance (mainly banks, building societies, credit unions, money market dealers, deposit taking financiers and financial asset investors). o Insurance (includes life insurers, superannuation funds, health and general insurers). o Services to Finance and Insurance (includes activities such as credit card administration, money changing services, insurance broking, futures, mortgage and stock broking). 1 In recent years, convergence and cross selling of products from different industry classes blurred sectoral lines, and as the move from traditional labour intensive, sector-specific functions to technology-streamlined processes became more industrywide and sales-oriented, specialisations became cross-functional. Process innovation has enabled a reduction in front-counter staff and facilities, with services directed to other centres and accessible via technology. This has lead to a complex infrastructure evolving which can focus on policy, regulatory and market structure issues. Major thrusts for new differentiated products/services, and performance targets, are impacting skill needs, likewise customer-forces and compliance. Accounting is an occupational grouping, not a sectoral one and so is to be found across all sectors. Accountants work in public practice, small to medium enterprises, large corporations and the public sector. There are specialist designations (e.g. in auditing, financial planning, taxation). Skilled migration is not alleviating the shortage of professional accountants in Australia because many technically-qualified migrant accountants don’t have the English language skills to meet employer needs.1 The number of overseas full-fee paying students studying accounting has risen dramatically. However, there has been no increase in HECS-funded places for domestic students despite rapid growth in demand for accountants in Australia. BIRRELL, B. (2006) The changing face of the accounting profession in Australia. Melbourne, CPA Australia. Updated February 2007 Page 7 of 40 Industry Training Demand Profile –Financial Services Australia’s strong global position and the expected growth across a wide range of products points to a need to maintain the high levels of competent and well-trained people in the industry and to reinforce adherence to best-practices. There is interest in further education and training to ensure Australia continues to develop individuals with capabilities to continually competitively service this growing market. Brokers (finance and insurance) are increasingly the first line of contact between clients and financial products/services, especially of the major institutions.2 No transparency statistics are available for Australia’s financial services sector, however in 2005 Australia was 9th on a world ranking of corruption3 Industry Organisations and Associations: o The Australian Securities & Investments Commission (ASIC) enforces and regulates company and financial services laws to protect consumers, investors and creditors.4 o The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the Australian financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies, and most members of the superannuation industry.5 o The Australian Taxation Office (ATO) administers tax legislation and is responsible for all self-managed superannuation funds. o Australian Stock Exchange Limited (ASX) operates Australia’s primary national stock exchange for equities, derivatives and fixed interest securities.6 o Reserve Bank of Australia (RBA) is responsible for monetary policy and the stability of the financial system. As at June 2005 the RBA identifies three main types of financial services institutions in Australia: Authorised Deposittaking Institutions (ADIs); Non-ADI Financial Institutions; and Insurers & Funds Managers. AUSTRALIAN AND NEW ZEALAND INSTITUTE OF INSURANCE AND FINANCE (2006) About The Institute, Melbourne, Australian and New Zealand Institute of Insurance and Finance. Available from: http://www.theinstitute.com.au/about/index.cfm [Accessed: 30 November 2006]. 3 TRANSPARENCY INTERNATIONAL (2006) Corruption perspectives index world ranking, [online]. Available from: http://www.axiss.gov.au/index.cfm?event=object.showIndexPage&objectid=3F4E655C-BCD6-81AC1905CA0E25BD5A02 [Accessed: 21 October 2006]. 4 AUSTRALIAN SECURITIES AND INVESTMENT COMMISSION (2006) About ASIC, Canberra, ACT, Australian Government. Available from: http://www.asic.gov.au/asic/asic.nsf/byheadline/About+ASIC?opendocument [Accessed: 30 November 2006]. 5 AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY (2006) About APRA, Canberra, ACT, Australian Government. Available from: http://www.apra.gov.au/aboutApra/ [Accessed: 30 November 2006]. 6 AUSTRALIAN STOCK EXCHANGE (2006) About the ASX, Sydney, Australian Stock Exchange. Available from: http://www.asx.com.au/asx/about/Feedback.jsp?referred=http://www.asx.com.au/ [Accessed: 30 November 2006]. 2 Updated February 2007 Page 8 of 40 Industry Training Demand Profile –Financial Services o Australian Financial Operations Association (AFOA) expects growth in operations areas, with 30% of organisations intending to increase staff over the next 12 months. o The Financial Services Institute of Australasia (FINSIA) is the new face of the Securities Institute of Australia and the Australian Institute of Banking and Finance (AIBF). FINSIA (June 2006) called for industry to raise awareness of Sustainable Responsible Investments (SRI) amongst consumers following the release of the Parliamentary Joint Committee's (on Corporations and Financial Services) Report “Corporate responsibility: Managing risk and Creating Value”.7 Professional Bodies and Professional Practice o In Accounting, the minimum educational standard for professional practice is an undergraduate degree accredited by CPA Australia. The National Institute of Accountants (NIA) offers Associate membership for those who have completed a University Degree in Accounting or an Advanced Diploma in Accounting.8 o In the Insurance sector it is possible to have ANZIIF Membership without an accredited industry qualification, but not become a CIP (Certified Insurance Professional) as this requires a Certificate IV in General Insurance for Associate level membership. o The National Insurance Brokers Association require the completion of a Diploma of Financial Services but also have an Associate level for those who do not meet the educational and experiential requirements for full accreditation as a Qualified Practising Insurance Broker (QPIB).9 o The Financial Planning Association of Australia (FPA) has raised the bar for Certified Financial Planner (CFP) certification, effective 1 January 2007, requiring an Under-graduate degree, Masters Degree or PhD. The Financial Planning Association (FPA) is proposing to further define practitioner membership based on education, experience and ethics, and if adopted will come into effect in 2008. ‘There is widespread recognition that ASIC Policy Statement 146 – the minimum education standards required for authorisation to provide financial planning advice – is too low an entry level for financial planning professions. All FPA practitioner members will have higher professional qualifications and experience to reflect the career progression of a financial planner in its membership categories’.10 FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA (2006) About FINSIA, Sydney, Financial Services Institute of Australasia. Available from: http://www.finsia.edu.au/ [Accessed: 30 November 2006]. 8 NATIONAL INSTITUTE OF ACCOUNTANTS (2006) About NIA, Melbourne, National Institute of Accountants. Available from: http://www.nia.org.au/ [Accessed: 30 November 2006]. 9 NATIONAL INSURANCE BROKERS ASSOCIATION OF AUSTRALIA (2006) Home Page, Sydney, National Insurance Brokers Association Available from: http://www.niba.com.au/niba/html/default.cfm [Accessed: October 2006]. 10 FINANCIAL PLANNING ASSOCIATION (2006) About Us, Melbourne, Financial Planning Association. Available from: http://www.fpa.asn.au/ [Accessed: 30 November 2006]. 7 Updated February 2007 Page 9 of 40 Industry Training Demand Profile –Financial Services Tasmania In June 2002 the Financial and Business Services (FABS) Industry Council developed an Industry Plan to cover both industry sectors (more than 2800 such firms) in Tasmania. The (then) prevailing issues and thinking are projected into the Plan. It notes the demise of the Trust Bank, and a tendency with the relocation of banking infrastructure for bank branches to become retail sales outlets with key lending and investment decisions made elsewhere. Key goals and strategic initiatives with potential to impact skill demand and development include: develop and increase the FABS skill base in Tasmania; and attract specific FABS business units to Tasmania. There is an emphasis on high level and professional skills. Stakeholders suggest industry has become complacent about the Plan because goalposts and priorities moved with restructuring and a stronger economy. Table 2: Tasmanian Financial Services Industry – Total Employment by ANZSIC Code (2001) 730 Finance, undefined 731 Central Bank 732 Deposit Taking Financiers 733 Other Financiers 734 Financial Asset Investors 741 Life Insurance and Superannuation Funds 742 Other Insurance 750 Services to Finance and Insurance, undefined 751 Services to Finance and Investment 752 Services to Insurance 7842 Accounting Services Total Male 21 0 349 0 18 50 258 6 270 93 569 1,634 Total Female Persons 28 49 0 0 450 799 3 3 7 25 33 83 227 485 3 9 205 475 63 156 546 1,115 1,565 3,199 % 1.5% 0.0% 25.0% 0.1% 0.8% 2.6% 15.2% 0.3% 14.8% 4.9% 34.9% Source: Commissioned data run from ABS Census of Population and Housing (2001) Tasmania’s financial services industry consists of numerous organisations (ranging from less than 10 to over 200 employees), with a representation of major institutions. Table 2 indicates that there are 3,199 employees in Tasmania’s the Financial Services industry, about 2% of the State’s employment. FNS04 Financial Services Training Package FNS04 is the relevant Training Package for the Financial Services Industry. In some large enterprises Certificate III is now a condition of employment. Industry awareness is increasing and, with specific marketing and resourcing, it anticipates wider uptake. The restricted range of delivery support materials narrows choices in qualifications and delivery. Issues with the choice of competencies in Certificate IV need resolving as this limits its value and delivery. FNS04 qualifications have a valued role in the Financial Services industry, particularly at the paraprofessional levels. The industry is interested in using traineeships for new entry-level vacancies. In some cases (e.g. 12 months traineeships, clerical/administrative roles), BSB01 Business Updated February 2007 Page 10 of 40 Industry Training Demand Profile –Financial Services Services Training Package is preferred. The qualifications are perceived as more portable, more flexible and competencies relevant to financial services can be imported into the qualification. There are few opportunities for meaningful and continuing employment in Financial Services at a level less than Certificate Level III. New businesses The corporate ownership and structuring of banking, credit/lending, insurance and other sectors are currently stable in Tasmania and respondents believe that the immediate outlook will remain so for the near future. New technology Across financial services, industry consolidation has resulted in a drift of functions (e.g. HQ, HR, training, company/client services) from local to mainland or off shore centres, frequently being the national centres located in Melbourne and Sydney. Centralisation, the development of flatter structures and greater devolution of responsibility and accountability through organisations has increased the reliance on technology. It has also meant that opportunities for career progression within large financial services organisations in Tasmania are limited and dampens demand for higher level training and the range of training required. Australia’s financial services sector is rapidly embracing technology and innovation, but no statistics are available specific to its e-capacity. Typically, technological literacy is a priority skill in the industry. In 2006 Australia was 8th on a world ranking of e-readiness, ahead of countries in the Asian time zone and behind USA.11 Technological change is continuous and incremental in nature and the decisionmaking regarding direction and implementation are, for the larger institutions, taken outside of Tasmania. Strategic priorities/directions A new code of practice, developed by the National Insurance Brokers Association (NIBA) of Australia, comes into effect in January 2007.12 It is designed to increase transparency and customer confidence, and applies principally to general insurance and life risk insurance, and to a lesser extent associated services such as risk management, arrangement of premium funding, inspection and valuation. It goes beyond regulatory requirements and sets out standards for brokers to follow when dealing with clients, including client information and education, and requirements to inform clients of remuneration arrangements and any conflict of interest. Emerging challenges (e.g. countering money laundering, terrorism financing and mortgage fraud has implications for technology and procedures; and climate change ECONOMIST INTELLIGENCE UNIT (2006) E-Readiness world ranking, [online]. Available from: http://www.axiss.gov.au/index.cfm?event=object.showIndexPage&objectid=3F4E655C-BCD6-81AC1905CA0E25BD5A02 [Accessed: 21 October 2006]. 11 NATIONAL INSURANCE BROKERS ASSOCIATION (2006) Code of Practice, Sydney, National Insurance Brokers Association. Available from: http://www.niba.com.au/html/24513.cfm [Accessed: 30 November 2006]. 12 Updated February 2007 Page 11 of 40 Industry Training Demand Profile –Financial Services impacts consumers, investors, lenders and insurers) will give impetus to specific training. With respect to the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Bill, it appears accountants will not be included in the first stage of the legislation; however, members holding an Australian Financial Services (AFS) licence will be and will need to implement compliance programs to ensure they meet their obligations (CPA Australia). It is expected that the Bill will be passed in parliament by the end of 2006 and implemented in stages over a two-year period. Respondents were concerned the increasingly negative perception of the industry due to the rationalisation of the last decade would impact their ability to recruit quality staff and they believed that this would be addressed at an industry level in the near future. There is increasing recognition that performance relates to workforce quality. Over half of all financial services industry employees have qualifications beyond secondary school level, with a university bachelor degree being the most common (Australia Now). The Finance Sector Union promotes investing in jobs and skills right across the industry, in IT, infrastructure, accounting, processing and the front line. Training in the Financial Services Industry Training in the industry is largely self-funded, much of it sourced (or centrally administered) outside Tasmania and internally provided. Within the State there is not a critical mass to run training outside the Hobart area. Meetings, journals and online training are available for professional development/training, but do not always address local or individual needs. Local disadvantages are extra travel/costs if attending distant courses; a limited choice locally; and how to get relevant training (e.g. where the State has specific requirements or legislation such as Workers Compensation). Much of the recent training surge in response to Financial Service Reforms (FSR) was largely driven by the need to meet ASIC PS146 and PS164. Compliance is a continuing need, but the numbers to be trained in the future will be lower. While previous levels of training in GST and BASS are no longer necessary, maintaining knowledge and compliance with taxation and other regulatory regimes will continue to be reasons for training. Most employees are computer-literate now and the future focus in training is directed to specific technological capacities necessary to perform. Diminishing areas/skills Previous levels of training provision specifically for GST and BAS are no longer necessary, however employees will need to keep up-to-date and comply with taxation. The training surge in response to Financial Service Reforms (FSR), largely impacting those providing financial advice, is over. Compliance is a continuing driver, but numbers to be trained in the future will be lower. Updated February 2007 Page 12 of 40 Industry Training Demand Profile –Financial Services Part 2 1 Skill shortages Skill shortages At higher professional levels and in specialist functions all sectors report skills shortages; the higher the level the harder it is to fill positions. Employers want candidates with the best qualifications and right experience and there are too few of these. Not enough local employees have the right attributes (level of skills, qualifications, experience, professional status) to progress their careers. Employers are looking after those they have. Thus, those likely to apply are graduates and those interested in progressing their career outside their present situation. Imports (mainland and overseas) cannot meet the shortage without the requisite experience and communication skills. Usually, there are enough graduates for graduate opportunities but there is a perception by employers that they lack the necessary experience to fill the higher professional level shortages. There are indications from this research that the skills shortages across the industry (e.g. accounting, finance, financial services, insurance sectors), are mainly at the higher levels of responsibility. While some employers (banking, accounting, clerical), reported they have had a sufficient pool of suitable applicants for entry/lower level positions, generally positions are now becoming more difficult to fill at all levels. Pressure to fill vacancies is increasing with competition from other business sectors. There is an ongoing need to ensure a sufficient pool of labour, and to update skills in new and existing staff for compliance, growth and competitiveness. The diminished opportunities for younger people because they lack experience and the ageing of the current workforce are of concern and, combined may lead to a more severe future skills shortage. Skills and qualifications are being pushed up by stiff competition between candidates for attractive well-remunerated jobs; employer preferences for the best qualified and experienced persons; compliance; professional bodies; and consumer expectations. University degrees are increasingly important, more particularly at professional levels. The qualifications and design of training must recognise the flexible structure of work in the industry, and the need for mobility (e.g. across functions, sectors, centres) and understand the competing demands of work, learning and lifestyle. 2 The drivers of training Main ongoing drivers for skills and training overlap are expected to be: o Growth and competitiveness (e.g. innovation, business, revenues, profits) o Capacity to make sound judgments o Compliance with the regulatory environment Updated February 2007 Page 13 of 40 Industry Training Demand Profile –Financial Services o Operational risk o Technology o Professional membership and career progression o Skill shortages o Change o Business policy/strategy 3 The training needs The educational fields for training are Clerical Level III and above in: o Accounting o Banking, Finance, Lending o Insurance o Broking (Mortgage, Insurance) Generally, the industry regards priority skills areas as: o Product/market knowledge; o Compliance and operational risk (e.g. FSR, Fraud, AML) o Updating skills to use technologies o Customer service and sales o General administration o Communication o Leadership (e.g. business, innovation, revenue performance) o Organisation or job-specific (e.g. values, culture, time management, teamwork, credit analysis) o Technology skills (for new processes and technologies) Approximately 70% of organisations interviewed indicated that financial market product knowledge and understanding of compliance/operational risk knowledge would be the areas of highest priority for short course training. Updated February 2007 Page 14 of 40 Industry Training Demand Profile –Financial Services Part 3 Industry demand for training Accounting Characteristics of the existing workforce According to the last ABS Census (2001) data available at the time of reporting (Tables 3 & 4), there are 32 postgraduate trained accountants, approximately 470 with bachelor degrees and a further 160 with diplomas or certificates who work as ‘Accountants, Auditors or Corporate Treasurers’, mainly in Accounting Services and as Financial Associate Professionals. Over 50% of the industry is focused in Hobart with nearly 30% in Launceston. Women comprise about one third to half of those employed in the higher level occupations but predominate in the lower level clerical occupations. 21.8% of those working in the industry have graduate level qualifications and are an increasing proportion with diplomas and certificates comprising a further 24%. Those taking a VET path tend to work in non-bank businesses including public accounting firms and self-fund their progress towards qualifications, exiting when they get employment or attain a level of skills they believe is adequate. Monash data13 indicates strong employment growth in some areas and contractions in others: Figure 1: Forecast Employment Growth for 'Book Keepers' o Strong growth in the ASCO category of Accountants, Auditors and Corporate Treasurers but this grouping is more likely to be tertiary trained Bookkeepers 1 o The number of accounting clerks is declining but there has been a major upsurge in the employment of book keepers with forecast continuing strong demand 0 92-3 93-4 94-5 95-6 96-7 97-8 98-9 99-0 00-1 01-2 02-3 03-4 04-5 05-6 06-7 Source: Centre for Policy Studies (2004) CENTRE FOR POLICY STUDIES (2004) Historical and forecast employment in ASCO classification ‘Book keepers’. Melbourne, Vic, Monash University. 13 Updated February 2007 Page 15 of 40 07-8 08-9 Note that the information, views and recommendations in this document have been obtained under contract from industry sources as part of Industry Advisory Arrangements; they may include data or information which have not been otherwise verified, and they should not be interpreted as being the views, intentions or policy of OPCET or the Tasmanian Government. Table 3: Tasmanian Financial Services Industry Sector by Occupation (2001) Finance and Insurance Services ANZIC Codes 730 Finance, undefined 731 Central Bank 732 Deposit Taking Financiers 733 Other Financiers 734 Financial Asset Investors 741 Life Insurance and Superannuation Funds 742 Other Insurance 751 Services to Finance and Investment 752 Services to Insurance 7842 Accounting Services Total Occupations by ASCO Code Acc, Auditors & Corp Misc Bus & Info Prof's Treasurers Male Female Persons Male Female Persons 3 0 3 0 0 0 0 0 0 0 0 0 3 9 12 6 14 20 0 0 0 0 0 0 0 0 0 0 0 0 10 3 13 0 0 0 4 8 12 3 0 3 21 9 30 6 6 12 3 6 9 6 0 6 513 321 834 15 12 27 557 356 913 36 32 68 Finance Assoc Prof's Misc Bus & Admin Adv Numerical Clerks Misc Adv Clerical & Gen Clerks Misc Int Clerical Elementary Clerks Assoc Prof's Service Workers Workers Male Female Persons Male Female Persons Male Female Persons Male Female Persons Male Female Persons Male Female Persons Male Female Persons Male 12 10 22 3 0 3 3 7 10 0 0 0 0 11 11 0 0 0 0 0 0 21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 180 107 287 6 13 19 94 131 225 3 3 6 6 13 19 47 148 195 4 12 16 349 0 0 0 0 0 0 0 0 0 0 0 0 0 3 3 0 0 0 0 0 0 0 18 4 22 0 0 0 0 0 0 0 3 3 0 0 0 0 0 0 0 0 0 18 21 9 30 6 5 11 0 0 0 10 0 10 3 16 19 0 0 0 0 0 0 50 112 65 177 6 13 19 5 9 14 111 66 177 11 33 44 6 27 33 0 6 6 258 204 70 274 12 43 55 9 16 25 9 15 24 9 33 42 0 6 6 0 7 7 270 53 23 76 3 10 13 0 0 0 21 3 24 7 12 19 0 6 6 0 3 3 93 9 3 12 0 52 52 23 97 120 0 3 3 3 39 42 3 3 6 3 16 19 569 615 294 909 36 136 172 134 260 394 154 93 247 39 160 199 56 190 246 7 44 51 1,634 Total Female Persons % 28 49 1.5% 0 0 0.0% 450 799 25.0% 3 3 0.1% 7 25 0.8% 33 83 2.6% 227 485 15.2% 205 475 14.8% 63 156 4.9% 546 1,115 34.9% 1,565 3,199 Source: Commissioned data run from ABS Census of Population and Housing (2001) Table 4: Tasmanian Financial Services Industry Occupations by Educational Levels (2001) Education Levels Acc, Auditors & Corp Misc Bus & Info Prof's Treasurers Male Female Persons Male Female Persons Postgraduate Degree Level 17 3 20 3 0 3 Graduate Diploma & Graduate Certificate Level 8 4 12 0 0 0 Bachelor Degree Level 320 146 466 14 9 23 Advanced Diploma & Diploma Level 78 48 126 9 6 15 Certificate Level 24 10 34 0 6 6 Not stated or inadequately described 7 11 18 0 0 0 Not applicable 103 134 237 10 11 21 Total quals 557 356 913 36 32 68 Occupations by ASCO Code Finance Assoc Prof's Misc Bus & Admin Adv Numerical Clerks Misc Adv Clerical & Gen Clerks Misc Int Clerical Elementary Clerks Assoc Prof's Service Workers Workers Male Female Persons Male Female Persons Male Female Persons Male Female Persons Male Female Persons Male Female Persons Male Female Persons Male 6 3 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 26 25 3 28 0 6 6 0 0 0 0 6 6 3 0 3 0 0 0 0 0 0 36 80 39 119 6 6 12 5 13 18 14 7 21 6 6 12 3 17 20 0 6 6 448 142 34 176 9 5 14 14 19 33 21 9 30 0 12 12 3 10 13 3 0 3 279 59 37 96 3 24 27 13 32 45 36 14 50 9 27 36 13 37 50 0 3 3 157 29 17 46 3 3 6 3 16 19 14 6 20 0 6 6 0 12 12 0 3 3 56 274 161 435 15 92 107 99 180 279 69 51 120 21 109 130 37 114 151 4 32 36 632 615 294 909 36 136 172 134 260 394 154 93 247 39 160 199 56 190 246 7 44 51 1,634 Total Female Persons 6 32 19 55 249 697 143 422 190 347 74 130 884 1,516 1,565 3,199 Source: Commissioned data run from ABS Census of Population and Housing (2001) NOTE that the size of the classification of “Not stated or adequately described” and “Not applicable” may be due to large numbers of people with nil or alternative qualifications working in the industry. Updated February 2007 Page 16 of 40 % 1.0% 1.7% 21.8% 13.2% 10.8% 4.1% 47.4% 100.0% Note that the information, views and recommendations in this document have been obtained under contract from industry sources as part of Industry Advisory Arrangements; they may include data or information which have not been otherwise verified, and they should not be interpreted as being the views, intentions or policy of OPCET or the Tasmanian Government. Table 5: Tasmanian Financial Services Industry by Regions, Educational Levels and Occupations (2001) Finance and Insurance Services ANZIC Codes Occupations by ASCO Code Acc, Auditors & Corp Treasurers Misc Bus & Info Prof's Finance Assoc Misc Bus & Adv Numerical Prof's Admin Assoc Clerks Prof's Misc Adv Clerical & Service Workers Gen Clerks Misc Int Clerical Workers Elementary Clerks Total Greater Hobart 730 Finance, undefined 731 Central Bank 732 Deposit Taking Financiers 733 Other Financiers 734 Financial Asset Investors 740 Insurance, undefined 741 Life Insurance and Superannuation Funds 742 Other Insurance 750 Services to Finance and Insurance, undefined 751 Services to Finance and Investment 752 Services to Insurance 7842 Accounting Services Total 3 0 6 3 0 0 7 6 0 18 12 389 444 0 0 10 0 0 0 4 4 0 7 0 17 42 13 0 137 3 7 0 22 95 0 174 41 7 499 3 0 12 3 3 0 10 12 0 29 8 24 104 4 0 116 0 0 0 3 8 0 16 0 48 195 0 0 3 0 0 0 6 92 0 11 12 0 124 7 0 11 0 3 0 19 23 0 27 11 17 118 0 0 62 0 0 0 3 22 0 4 4 6 101 0 0 7 0 0 0 0 5 0 4 3 10 29 30 0 364 9 13 0 74 267 0 290 91 518 1,656 Southern 730 Finance, undefined 731 Central Bank 732 Deposit Taking Financiers 733 Other Financiers 734 Financial Asset Investors 740 Insurance, undefined 741 Life Insurance and Superannuation Funds 742 Other Insurance 750 Services to Finance and Insurance, undefined 751 Services to Finance and Investment 752 Services to Insurance 7842 Accounting Services Total 0 0 0 0 0 0 0 0 0 0 0 14 14 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7 0 0 0 0 3 0 4 4 0 18 0 0 0 0 0 0 3 0 0 3 3 3 12 0 0 3 0 0 0 0 0 0 0 0 11 14 0 0 0 0 0 0 0 8 0 0 0 0 8 0 0 0 0 0 0 0 0 0 3 0 0 3 0 0 3 0 0 0 0 3 0 0 0 0 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13 0 0 0 3 14 0 10 7 28 75 Mersey-Lyell 730 Finance, undefined 731 Central Bank 732 Deposit Taking Financiers 733 Other Financiers 734 Financial Asset Investors 740 Insurance, undefined 741 Life Insurance and Superannuation Funds 742 Other Insurance 750 Services to Finance and Insurance, undefined 751 Services to Finance and Investment 752 Services to Insurance 7842 Accounting Services Total 0 0 0 0 0 0 0 0 0 5 0 147 152 0 0 0 0 3 0 0 0 0 3 0 4 10 6 0 46 0 0 0 3 27 0 39 3 0 124 0 0 3 0 3 0 0 0 0 11 0 18 35 3 0 43 0 0 0 0 0 0 4 0 21 71 0 0 0 0 0 0 0 26 0 6 3 0 35 0 0 0 0 0 0 0 5 0 4 0 9 18 0 0 3 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 3 0 0 0 3 6 9 0 95 0 6 0 3 61 0 72 6 202 454 Greater Launceston 730 Finance, undefined 731 Central Bank 732 Deposit Taking Financiers 733 Other Financiers 734 Financial Asset Investors 740 Insurance, undefined 741 Life Insurance and Superannuation Funds 742 Other Insurance 750 Services to Finance and Insurance, undefined 751 Services to Finance and Investment 752 Services to Insurance 7842 Accounting Services Total 4 0 0 0 0 0 0 4 0 5 0 255 268 0 0 9 0 0 0 0 3 0 4 0 5 21 5 0 86 0 8 3 4 47 3 58 23 5 242 3 0 3 0 0 0 0 3 0 10 3 13 35 3 0 59 0 0 0 0 0 0 5 0 31 98 0 0 0 0 0 0 3 47 0 7 8 0 65 0 0 4 0 0 0 3 8 0 5 3 12 35 0 0 116 0 0 0 0 6 0 3 0 0 125 0 0 8 0 0 0 0 3 0 0 0 4 15 15 0 285 0 8 3 10 121 3 97 37 325 904 Central North and North Eastern 730 Finance, undefined 731 Central Bank 732 Deposit Taking Financiers 733 Other Financiers 734 Financial Asset Investors 740 Insurance, undefined 741 Life Insurance and Superannuation Funds 742 Other Insurance 750 Services to Finance and Insurance, undefined 751 Services to Finance and Investment 752 Services to Insurance 7842 Accounting Services Total 0 0 0 0 0 0 0 0 0 0 0 28 28 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 0 0 0 0 3 0 3 4 0 18 3 0 0 0 3 0 0 0 0 0 0 3 9 0 0 5 0 0 0 0 0 0 0 0 8 13 0 0 0 0 0 0 0 3 0 0 0 0 3 0 0 0 0 0 0 0 3 0 0 0 5 8 0 0 14 0 0 0 0 0 0 0 0 0 14 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 27 0 3 0 0 9 0 3 4 44 93 Source: Commissioned data run from ABS Census of Population and Housing (2001) Updated January 2007 Page 17 of 40 Industry Training Demand Profile –Financial Services Normal drivers of training demand in this industry sector Maintenance of skills for compliance and operational risk, e.g. taxation, superannuation, accounting standards, due diligence Change, e.g. legislation, regulations, standards, technology, consumers Career-related, e.g. professional membership, career progression, full or part time study at TAFE for introductory skills Traineeships Changes occurring in the demand for training There are many different occupations in the industry in Tasmania. Some types of knowledge and skills are generic for all roles (e.g. computer literacy) whilst others are role-related (e.g. payments). Applicants with skills and experience are preferred however characteristics such as team spirit and attitude to risk are also important. The trend is towards more autonomous workers who have excellent product knowledge, can provide good customer service, work within a regulated environment and make sound judgments. Whilst general administration and sales/service skills are necessary across the industry, career progression requires high-level specialist skills and knowledge. Qualifications can be a condition of entry, the significance increasing with the level of responsibility. Industry or related experienced is valued at all levels, it too increasing in importance at higher levels of responsibility. Screening and psychometric profiles are standard procedures. The Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Bill is expected to be passed in parliament by the end of 2006 for implementation in stages over a two-year period. It appears Accountants will not be included in the first stage of the legislation however, members holding an Australian Financial Services (AFS) licence will be and will need to implement compliance programs to ensure they meet their obligations.14 Existing practitioners affected by the legislation will need to be abreast of it and changes occurring as a result of it. Three potential options for accomplishing the training are: o Continuing professional development (individual obligation, self-funded). o In-house training. o Professional body services. For those taking a VET study path, the Financial Services Training Package already includes competencies (generic and specific, from AQF levels III – VI) for working within the legal, regulatory and policy environment, and a suite of compliance competencies. CPA AUSTRALIA (2006b) News, Melbourne, Vic. Available from: http://www.cpaaustralia.com.au [Accessed: 3 November 2006]. 14 Updated February 20057 Page 18 of 40 Industry Training Demand Profile –Financial Services Changes required to the nature of training Current modes of delivery are essentially a validation of workplace training attainment. This is recognised as being useful for the industry because it ensures practical skills are relevant to the enterprise, and without this mode of delivery, fewer employers would be able to participate because of their inability to release staff to formal classes. However, validation alone tends to limit learning only to the work practices of the employer whereas an off-the-job component has the advantage of broadening knowledge and skills. Employers suggest combining regimes to include more innovative and effective flexible learning models. There is demand for more choice in qualifications and a more appropriate range of content. Greater flexibility is needed in the FNS04 Financial Services Training Package qualifications. Where qualifications or training are (or appear to be) narrow it impacts the value to employers because it limits the deployment of skills across the business. For career minded individuals if it is not clear that certain skills are generic, others specialist, and the qualifications are portable, it hinders their progression across sectors. This is why some prefer the BSB01 Business Services Training Package. This suggests a need to relax the packaging rules in FNS04, and perhaps rationalise the qualifications or integrate FNS04 and BSB01 to reduce duplication and offer clearer relevant choices of competencies. The target market for training The main target for the marketing of training is to existing staff. Pre-employment vocational training, with industry and public accounting firms’ nonprofessional staff are in the traditional and current target market. Extension to University graduates to enable attainment of technical and practical skills for: o Individuals to update. o Continuing professional development. Proprietors of small to medium businesses. Numbers of people that need to be trained Since the occupational area is too diverse to accurately determine numbers, the numbers relate to trend data and survey feedback (100% of employer respondents indicated they expected the numbers of their staff to be trained to be at least the same as the past 12 months, i.e. 2005/2006). Non-traineeship VET programs – maintain at 2005 numbers (numbers for specific qualifications are given in Table 3, page 29), apart from MYOB Computerised Accounting Training. Low intermittent demand is likely for MYOB, and RTOs could consider specific short courses on a fee-for-service basis. Updated February 20057 Page 19 of 40 Industry Training Demand Profile –Financial Services Traineeships – maintain at 2005 numbers (numbers for specific qualifications are given in Table 3, page 29). Comments on any government funded training provision in excess of local industry needs Vocational education training in schools is not regarded as sufficient for entry to the industry, but functions to raise career awareness, as an introduction to vocational training and developing general employability skills. No other provision in excess of demand was identified. Recommendations for the appropriate response by the training system An appropriately rigorous but ‘user friendly’ process for recognition of current competency (RCC) is essential to enable existing employees to access competencies and qualifications. This needs to be within a coherent framework of qualifications and competencies that clearly relates to careers and progress towards higher qualification levels. Information on training demand being met outside the Tasmanian public system Much of the training related to Continuing Professional Education, compliance and change occurs outside the public system, for example that provided by professional bodies and on a fee-for-service basis by RTOs and external providers using flexible modes of delivery. In-house training continues to be important. Professional level programs are required for membership of professional bodies. Additional industry advice not directly related to industry demand for training Greater collaboration between School, VET, the University sectors and other stakeholders may improve articulation arrangements and training provision. Stakeholders (including industry, government, training and educational providers) will need to cooperate in addressing the strategic needs and skills shortages in Accounting. Generally, all employers are now finding jobs harder to fill at all levels, and anticipate this will increase where there is competition with other sectors. This is not thought to be entirely a consequence of a shortage in the supply of graduates, but more because of a lack of appropriate experience of those available. Graduates from the mainland or overseas are unlikely to meet all shortages. CPA Australia points out that the International English Language Testing System (IELTS) tests for Level 5 English competency, which equates to a vocational level of English, have not proven sufficient for migrants to be able to function effectively in professional roles in the Australian workplace. While Level 6 IELTS score is considered to demonstrate ‘competent English’, CPA Australia supports raising the Updated February 20057 Page 20 of 40 Industry Training Demand Profile –Financial Services testing level to Level 7 competency, which is closer to the level required for communications on complex accounting issues.15 Liaison with the Tasmanian Finance and Business Services Industry Council, particularly regarding the need for the Industry Plan and updating and implementing it, will be crucial for addressing skills shortages and growth. Specific questioning during interviews with industry did not elicit any advice on cadetships. Finance, Banking and Insurance Characteristics of the existing workforce The Finance, Banking and Insurances sectors employ about 60% of those employed in the overall industry with nearly half of those being Deposit Taking Financiers. However, in contrast to the Accounting sectors, they generally employ more of the lower level occupations, and thus the VET level qualifications predominate (Tables 3 & 4). Similar to the Accounting sectors though, the distribution is also concentrated in Hobart and Launceston (Table 5).16 The following Monash data indicates slightly higher employment numbers, over 5000, than the Census data, and demonstrates the fluctuating pattern of employment in Financial Services during the 90s and forecasts relatively stable if slightly decreasing employment. Since it become available the data has been used to gain an impression of the workforce characteristics for training purposes, however the Financial Services sectors, like Business Services is strongly influenced by general economic conditions and as the Tasmanian economy is more buoyant these forecasts may be on the low side. Figure 2: Forecast Employment Growth of the Finance and Insurance Industry Sectors Finance and insurance 5 4 3 2 1 0 92-3 93-4 94-5 95-6 96-7 97-8 98-9 99-0 00-1 01-2 02-3 03-4 04-5 05-6 06-7 07-8 08-9 Source: Centre for Policy Studies (2004) CPA AUSTRALIA (2006a) CPA program, Melbourne, Vic. Available from: http://www.cpaaustralia.com.au/cps/rde/xchg/SID-3F57FEDF-6FD63104/cpa/hs.xsl/801_ENA_HTML.htm [Accessed: 3 November 2006]. 16 Based on a commissioned data run from ABS Census of Population and Housing (2001) 15 Updated February 20057 Page 21 of 40 Industry Training Demand Profile –Financial Services Over half the industry is located in the Greater Hobart area, about a third in the North and a much smaller component in the NW. About a quarter of the workforce is over 45, with the greatest proportion (63%) in the 25 – 44 age groups. The three main industry sectors are Finance, with about half the employees in the industry, Insurance and Services to Finance and Insurance, both with about quarter of the employees. In Finance, there was a general pattern of decrease in employment in the 1990s from a peak of over 3,500, with employment levels forecast in the next few years to be between about 2,700 and 2,500. The greatest majority of these employees (app. 2000) are in the Deposit taking Financiers sub-sector, i.e. banks, building societies, credit unions. In Insurance, there was considerable fluctuation in employment in Tasmania during the 1990s, with a forecast for employment to be about 1,100 – 1,200 in the next few years. The life insurance/superannuation sub-sector accounts for about a third of employment with two thirds in Other Insurance, which includes Health and General Insurance. Services to Finance and Insurance experienced fluctuating employment during the 1990s but continuing strong levels of about 1,450 were forecast through the next decade. Services to finance/investment account for about two thirds of employment, with one third in services to insurance. Services include stock broking, stock exchange operation, trustee service, executor service, mortgage broking, actuarial services, claim adjustment, claim assessment and insurance broking. Key occupational groups within this industry and employment forecasts to 2008/9, include: o Branch accountants and managers (Finance Institutions) – after decline of the last decade, remaining relatively steady at about 260 o Finance managers – continuing strong growth from 650 to 850 (app 4 times the 92/93 level), likely to be cross-industry o Financial dealers and brokers – rapid and substantial growth from very low levels of about 150 in the mid-1990s to about 550 and forecast to continue to about 670 late in this decade o Financial investment advisers – the greatest growth and fastest growing group, from less than 50 in the early 1990s to about 500 now and forecast to continue to about 700 late in the decade o Bank workers – decline from over 2000 with a rapid drop to about half that number in the late 1990s and forecast continuing decline through this decade o Credit and loans officers – this group that hardly existed in the early 1990s, had grown to about 400 in the late 1990s and is forecast to continue around 360 for some years o Insurance agents – fluctuations in the 1990s and declining employment this decade Updated February 20057 Page 22 of 40 Industry Training Demand Profile –Financial Services o Insurance clerks – forecast decline from about 640 to 540. The industry, particularly banks, have moved away from their traditional role of providing employment to school leavers and secure and relatively predictable careers especially for young men. The industry now has very low employment of young people (13% under 24), about 25% of employees are 45 and over, and most, 63%, are in the 25 – 44 age group. There are indications from the consultations of growing shortages across the industry, initially mainly at the higher levels of responsibility, increasing with the level, both in management and specialisations, are now also affecting some sectors/institutions at all levels (e.g. credit unions, financial services, insurance sectors). While some employers report a sufficient pool of suitable applicants for entry/lower level positions in banking and accounting, pressure is increasing everywhere with competition from other business sectors. Of particular concern, should the projected age demographics be realised, are the diminished opportunities for younger people due to industry requirements for experience and the ageing workforce. This may indicate affected industry sectors are facing greater skills shortage if action is not occurring to remedy this. Normal drivers of training demand in this industry sector Normal drivers of training demand for these sectors include: o Growth and staying competitive (e.g. business, revenues, profits) o Competence, e.g. to make sound judgments/provide sound advice, apply excellent product/market knowledge o Skills for compliance and operational risk, e.g. with the regulatory environment o Change e.g. process and technological o Career-related, e.g. professional membership, career progression o Traineeships o Staff turnover The remuneration for some jobs in the Financial Services sector is not as high as elsewhere, thus the jobs are less attractive. This is also a reason for staff turnover. Training required over the next 12 months but not expected to significantly change demand in the public training system, includes: o Product/market knowledge o Compliance (e.g. FSR, Fraud, AML) o Updating skills to use technologies (e.g. new system training) o Customer service and sales o Leadership Updated February 20057 Page 23 of 40 Industry Training Demand Profile –Financial Services o Frontline management o General administration o Credit analysis o Organisational culture and values o Teamwork o Time management o Communication Changes occurring in demand for training Interrogation of OPCET’s VET Provider Statistical Collection (2006) indicates that enrolments in the Non-Traineeship Financial Services courses: o Have been declining significantly at all levels since 1999 except Certificate III (Table 6) o Are overwhelmingly female at all levels and that this has been steady over the last seven years. This is highest at Certificate III level (approx. 80%) although there are some indications that male enrolments are increasing slightly, and varies around 65 – 70% for the Certificate I and Diploma levels (Table 7). o Are distributed across the age ranges from the teenage years (19%), with the twenties having the highest with 27%, the thirties having 20%, and the forties having a similar proportion (21%) o Some 45% of enrolments are based in the South, 25% in the North and 29% in the North West of the state. Only 1% are overseas students. o The funding sources employed for Non-Traineeship Financial Services courses are predominantly under the TAFE Purchase Agreement (51%), NonTAFE User Choice 19%, Non-TAFE Fee-for-Service (9%), TAFE Fee-forService (6%), Tas Skills Investment Program (TAFE and Non-TAFE) 6%, and 5% VET in Schools (OPCET’s VET Provider Statistical Collection, 2006). Updated February 20057 Page 24 of 40 Industry Training Demand Profile –Financial Services Table 6: Historical Non-Traineeship Completions (1999 - 2005) HISTORICAL NON-TRAINEESHIP COMPLETIONS Course Title Certificate I in Business Certificate I in Business (office Skills) Certificate II in Business Certificate II in Business (office Administration) Certificate II in Financial Services Certificate III in Business Certificate III in Business (Legal Administration) Certificate III in Business (Medical Administration) Certificate III in Business (office Administration) Certificate III in Business (Recordkeeping) Certificate III in Business Administration Certificate III in Financial Services Certificate III in Financial Services (Accounts Clerical) Certificate III in office Administration (Medical office) Certificate IV in Business (Administration) Certificate IV in Business (Legal Services) Certificate IV in Business (Recordkeeping) Certificate IV in Finance (Retail Financial Services) Certificate IV in Financial Services Certificate IV in Financial Services (Accounting) Diploma of Accounting (Replaces FNB50299) Diploma of Accounting (Superseded By FNB50202) Diploma of Business (Accounting) Diploma of Business (Administration) Diploma of Business (Recordkeeping) Diploma of Financial Services Advanced Diploma of Accounting Advanced Diploma of Accounting (Replaces FNB60299) Advanced Diploma of Accounting (Superseded By FNB60202) Advanced Diploma of Financial Services (Financial Planning) MYOB Computerised Accounting Training Grand Total Program completed year 1999 2000 2001 2002 2003 2004 2005 2 1 57 72 102 112 10 1 2 9 286 507 515 435 6 156 35 17 8 3 5 12 4 1 66 201 326 266 11 13 19 9 4 9 294 68 14 6 1 2 1 1 1 11 164 226 273 227 1 1 5 154 113 123 119 61 128 114 125 4 4 6 7 3 283 160 16 13 5 3 2 1 1 1 3 84 62 62 48 2 48 83 81 79 2 47 80 73 62 4 63 24 25 15 4 1 10 3 1 1 1 2 3 2 1 1 2 41 59 58 45 2 62 17 25 9 1 12 7 7 9 6 1 60 1,929 1,879 1,877 1,605 Grand Total 346 11 1,754 222 24 860 52 4 391 5 902 516 428 21 475 10 2 1 259 293 264 131 5 15 3 6 1 205 115 1 35 7,357 Source: OPCET, VET Provider Collection (2006) Updated February 20057 Page 25 of 40 Note that the information, views and recommendations in this document have been obtained under contract from industry sources as part of Industry Advisory Arrangements; they may include data or information which have not been otherwise verified, and they should not be interpreted as being the views, intentions or policy of OPCET or the Tasmanian Government. Table 7: Tasmanian Non-Traineeship Financial Services Courses by Gender and Year of Commencement (2002 -05) 2,002 Non-Traineeship Course Title Females Advanced Diploma of Accounting Advanced Diploma of Accounting (Replaces FNB60299) Advanced Diploma of Accounting (Superseded By FNB60202) Advanced Diploma of Financial Services (Financial Planning) Sub-Total Certificate I in Business Certificate I in Business (Office Skills) Certificate II in Business Certificate II in Business (Office Administration) Certificate II in Business (Small Business Traineeship) Certificate II in Financial Services Sub-Total Certificate III in Business Certificate III in Business (Legal Administration) Certificate III in Business (Medical Administration) Certificate III in Business (Office Administration) Certificate III in Business (Recordkeeping) Certificate III in Business Administration Certificate III in Finance (Retail Financial Services) Certificate III in Financial Services Certificate III in Financial Services (Accounts Clerical) Certificate III in office Administration (Medical office) 2002 Total Males NS 84 37 84 449 9 1,056 221 1 4 1,740 158 33 37 89 1 241 43 374 33 Females 121 0 121 538 10 2 1,299 2 266 1 4 4 2,118 191 33 366 65 431 470 73 543 642 189 831 61 1,730 412 26 22 382 80 3 201 82 Sub-Total 639 165 47 1 4 Sub-Total 108 3 12 3 2 128 Sub-Total Certificate IV in Business (Administration) Certificate IV in Business (Legal Services) Certificate IV in Business (Recordkeeping) Certificate IV in Finance (Retail Financial Services) Certificate IV in Financial Services Certificate IV in Financial Services (Accounting) Diploma of Accounting (Replaces FNB50299) Diploma of Accounting (Superseded By FNB50202) Diploma of Business (Accounting) Diploma of Business (Administration) Diploma of Business (Recordkeeping) Diploma of Financial Services Financial Skills for Small Business Introduction to Word 97 MYOB 10.5 MYOB Computerised Accounting Training 3 1 Sub-Total Grand Total 4 4,325 2 54 1 2,003 83 0 2,112 9 501 29 283 9 813 0 155 4 16 3 4 182 1 67 4 72 435 1 1,100 15 Males NS 1 105 5 38 1 39 47 168 1 7 1,558 443 34 2 218 85 56 5 569 1 285 277 1 1,671 181 12 1 7 84 141 419 104 11 2003 Total 78 87 112 369 27 1 28 66 122 50 2 0 111 482 1 15 1,283 16 9 15 1,791 10 538 34 4 67 5 2 649 1 372 389 1 16 2,056 2 210 13 1 2 1 112 207 543 154 13 2 4 2 123 3 3 4 2 176 4 52 1 1 52 55 3,898 13 14 814 65 0 69 34 4,746 Females Males 83 37 83 256 1 38 72 2004 Total NS 0 1 Females Males 120 71 32 1 121 329 71 175 32 99 0 1 218 11 1,169 1 1,088 1 278 47 1,413 1 940 1 10 1,355 590 31 4 4 2 753 2 352 119 3 15 51 1,758 23 732 1 32 4 4 1 3 8 860 6 1,122 659 18 7 317 124 1 607 62 179 319 42 99 254 318 86 99 1,882 14 4 1 1 54 139 213 111 359 1,863 3 372 34 125 162 79 11 48 59 44 99 1 16 64 81 53 1 2005 Grand Total Total 2,005 222 418 34 2,275 14 5 1 1 70 203 0 294 164 2 1 114 2 1 167 53 0 56 56 3,703 15 15 898 71 0 71 85 4,686 NS 103 103 275 6 12 1,451 7 790 19 7 1 4 1 673 340 417 12 2,247 3 0 1 45 173 221 123 1 80 44 0 124 53 53 3,351 16 16 840 69 0 69 24 4,215 4 1 1 0 5 1,013 13 5,351 Source: OPCET, VET Provider Collection (2006) Updated January 2007 2,004 Page 26 of 40 1 328 126 1 456 1,624 11 5,164 284 1 34 7,118 2,251 118 11 502 9 2,725 1 1,765 1,224 84 8,690 728 47 2 1 510 583 1,871 441 168 4 19 10 7 649 4 4 1 205 214 18,998 Industry Training Demand Profile –Financial Services Table 8: Historical Tasmanian Financial Services Traineeship (2002 - 05) Nat Code Traineeship Title FNB20199 FNB30199 FNB30302 FNB40199 FNB40602 FNS30104 FNS30304 FNS40104 Financial Services Financial Services Financial Services (Accounts Clerical) Financial Services Financial Services (Accounting) Financial Services Financial Services (Accounts Clerical) Financial Services Grand Total 2002 2002 Total Cert II Cert III Cert IV 4 4 244 244 9 9 2003 2003 Total Cert II Cert III Cert IV 15 15 396 396 3 3 28 28 3 3 2004 2004 Total Cert II Cert III Cert IV 8 8 171 171 17 2005 Total Cert II Cert III Cert IV 5 5 131 131 22 17 9 2 4 244 9 257 15 399 31 445 8 171 1 18 1 197 Source: OPCET, VET Provider Collection (2006) Updated February 20057 2005 Page 27 of 40 5 142 22 2006 2006 Grand Total Total Cert III Cert IV 22 9 2 63 3 169 66 16 16 63 3 16 82 32 942 3 76 3 72 5 17 1,150 Note that the information, views and recommendations in this document have been obtained under contract from industry sources as part of Industry Advisory Arrangements; they may include data or information which have not been otherwise verified, and they should not be interpreted as being the views, intentions or policy of OPCET or the Tasmanian Government. OPCET’s VET Provider Statistical Collection (2006) indicates that enrolments in the Financial Services Traineeships: o Have declined significantly in recent years, particularly at the lower levels (Table 8). The Certificate IV level has been increasing proportionally over the period. o The Certificate III (Financial Services) is by far the most popular course and whilst enrolments are predominantly young females under 25 years, there are enrolments through to people in their early 50s. o Most enrolments are in the North or 7200 postcodes (57%), some 14% are in the North West and 22% in the 7000 postcodes Emerging challenges include the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Bill, which once passed will be implemented over a two-year period).17 Existing practitioners affected by the legislation will need to be abreast of it and changes occurring as a result of it. Three potential options for accomplishing the training are: continuing professional development (individual obligation, selffunded), in-house training, and professional body services. For those taking a VET study path, the Financial Services Training Package already includes competencies (generic and specific, from AQF levels III – VI) for working within the legal, regulatory and policy environment, and a suite of compliance competencies. The significant uptake of the Certificate III in Financial Services, particularly as a traineeship for existing employees, is mentioned under Accounting. Some of the 402 trainees in the Certificate III work in banks and other finance and insurance areas. Fewer trainees progress to Certificate IV in Financial Services. The necessary level of recognised skills and qualifications is being pushed up by interacting factors - stiff competition between candidates for any attractive, wellremunerated jobs with status; employer preferences for the best qualified (and experienced) persons; compliance; professional bodies qualification standards; company policy (several large employers have the Certificate III as a condition of employment) and consumer expectations. At higher levels of responsibility, while the qualification levels of Diploma and above, are of most interest to the industry, there is interest in higher level vocational training for existing staff who do not have University degrees, particularly where this could open their career opportunities and strengthen their capacity to articulate to higher levels of education (including Graduate Certificates and Diplomas) and professional standing. ATTORNEY-GENERAL'S DEPARTMENT (2006) Anti-money laundering, Canberra, Australian Government. Available from: http://www.ag.gov.au/aml [Accessed: 30 November 2006], THE OFFICE OF THE PRIVACY COMMISSIONER (2006) Inquiry into the Anti-Money Laundering and Counter-Terrorism Financing Bill 2006 and the Anti-Money Laundering and Counter-Terrorism Financing (Transitional Provisions and Consequential Amendments) Bill 2006, [online]. Available from: http://www.privacy.gov.au/publications/subamlctfb.html [Accessed: 30 November 2006]. 17 Updated January 2007 Page 28 of 40 Industry Training Demand Profile –Financial Services Changes required to the nature of training Provision of specialist training/qualifications for small numbers is a problem for the State, likewise where training content has to be state-specific (e.g. Workers Compensation). Increased flexibility and customer-focus for short course training that accommodates employer’s operational constraints and participant’s personal circumstances, particularly female employees with family commitments that limit training in their own time. Increased flexibility of the delivery mode and transferability of competencies between qualifications as outlined on Page 20. The target market for training Existing staff, including some who will hold University degrees who: o Require technical and practical skills. o To update and for continuing professional development. Trainees in the Certificate III in Financial Services. Numbers of people that need to be trained Since the sectors are too diverse and overlapping to accurately determine training numbers, the numbers relate to trend data and survey feedback (100% of employer respondents indicated they expected the numbers of their staff to be trained to be at least the same as the past 12 months, i.e. 2005/2006). Non-traineeship VET programs – maintain at 2005 enrolments (specific qualifications appear in Table 3, page 29). Traineeships – Increase 2005 numbers at Certificate III by 50 (specific qualifications appear in Table 3, page 29). Two major Banking/Financial Planning employers indicated that training is integral to its business strategy and anticipated that 200 of its staff in Tasmania would be involved in training in the next 12 months with a focus on up-skilling in computer technology and training for compliance (Tier 2, Tier 1). This is expected to include: o Hosted Y12 school leavers in Certificate II in Business Services traineeships (5-6 per annum) o Certificate III Financial Services traineeships (intake of 20 – 30 employees per annum) o 2 Certificate IV in OH&S. o 2 Diploma in Accounting. o 2 Certificate IV in Training & Assessment. o Certificates IV in Financial Services (supervisors); Updated February 20057 Page 29 of 40 Industry Training Demand Profile –Financial Services o An unspecified number of enrolments in Frontline Management. o Other non-accredited training (e.g. values). Comments on any government funded training provision in excess of local industry needs The industry is aware of vocational education and training in schools. Comments indicate it is mostly not seen as appropriate for the industry. With work placements, compliance can be a barrier (e.g. the need to sign a legal contract – a confidentiality agreement). The demand for the Certificate II is much less than Certificate III because it is not regarded as sufficient for entry to the industry. The demand for the Certificate IV is significantly less than Certificate III, the reasons varying between employers. Feedback from this TDP research suggests Certificate IV level is limited because: o The units can be taken from lower levels and Certificate III can incorporate units from Certificate IV. There were suggestions that funding would be more effective if directed to Diploma level. o There is too little differentiation between the levels, particularly the Certificates III and IV or too much overlap/duplication of the core units. Respondents suggested reducing the duplication between core units at Levels III and IV, strengthening the Level IV core units, and allowing a greater choice in electives at level IV through being able to select units from the Diploma level and import units from other qualifications and Training Packages o There is insufficient choice and flexibility in the electives. o Certificate IV doesn’t align well with workplace opportunities (e.g. supervisory level units) and affects its implementation, because: Trainees are unable to attain and demonstrate some competencies in the workplace, and these cannot be attained other ways. Workplaces are unable to provide the resources or practical experience. For example, a trainee having completed Certificate III would not be put in a supervisory level role because of their age and limited experience. Recommendations for the appropriate response by the training system The following recommendations and suggestions are made: There appears to be a need to realign the levels of training to industry’s needs because these have changed and are continuing to do so with the evolution of the Updated February 20057 Page 30 of 40 Industry Training Demand Profile –Financial Services industry. OPCET should raise the need to realign FNS04 qualifications training to industry’s needs, with Innovation and Business Skills Australia (IBSA).18 Review the assessment processes for Certificate IV processes to determine action required to remove the barriers that exist for workplace assessment. Promote both Traineeship and Non-Traineeship exit points at Level III rather than Level II. Develop an RCC process to enable existing employees to be recognised for experience and competence in compliance to assist progress towards professional standing. A more comprehensive range of learning materials in generalist and specialist areas is required to support provision of flexible delivery in Tasmania. Information on training demand met outside the Tasmanian public system Much of the training is driven by continuing professional education promoted within the larger financial services companies and is driven by compliance and change responses outside the public system. The training is provided by professional bodies and on a fee-for-service basis by RTOs and external providers and comprises up to 60% - 80% in some cases. Increasingly graduate programs are required for membership of professional bodies. Management and specialist training (from Diploma level up) appears to be sought outside Tasmania because the University of Tasmania’s delivery models are inappropriate. Additional industry advice not directly related to industry demand for training Greater collaboration between School, VET, the University sectors and other stakeholders may improve articulation arrangements and training provision. Stakeholders (including industry, government, training and educational providers) will need to cooperate in addressing the strategic needs and skills shortages in these sectors. As experience appears to be a critical issue for employers as well as the requirement for higher level qualifications, a promotional campaign for cadetship opportunities should be considered. Liaison with the Tasmanian Finance and Business Services Industry Council, particularly regarding the need for updating and implementing the Industry Plan could be crucial in addressing skills shortages and growth. INNOVATION AND BUSINESS SKILLS AUSTRALIA (2006) Discussion paper: Quality analysis of the FNS04 Financial Services Training Package Hawthorn, Victoria, Innovation and Business Skills Australia. Available from: http://www.ibsa.org.au/content/currentprojects/fns04.html [Accessed: 30 November 2006]. 18 Updated February 20057 Page 31 of 40 Industry Training Demand Profile –Financial Services Part 4 Assessment of physical infrastructure needs The ability of the existing building, plant and equipment infrastructure (in the publicly funded training system) to meet current and anticipated needs Existing plant and infrastructure is adequate. Additional information on human and systems aspects of training infrastructure Implementation of FNS04: o Funding and skills are needed for the development of learning materials to support provision of a range of flexible options, including recognition. o RTO staff development/action to enable highly effective, sustainable implementation of flexible modes of training delivery and support to industry across the State. Updated February 20057 Page 32 of 40 Industry Training Demand Profile –Financial Services Part 5 Information on VET in schools, including school based new apprenticeships Qualifications and pathways appropriate for delivery through a VET in Schools program including school based new apprenticeships The industry appears to have adequate awareness of the VET in Schools program (VIS). VIS is not regarded as sufficient for entry to the industry, but functions to raise career awareness, as an introduction to vocational training and developing general employability skills. Development and support for VET in Schools programs including school based new apprenticeships OPCET should liaise with industry associations and leading employers to determine how the VIS Program could be tailored to meet the needs of the Financial Services industry. A Training Resource Package for VIS Coordinators is available but may need modification in the light of the previous point. Emerging opportunities The industry is keen to promote the thinking in Schools about careers in the Financial Services industry and development of general employability skills. The Institute of TAFE Tasmania is very interested in offering alternative paths, School to TAFE, for those not ready or interested in an academic path via University. Issues in implementing VET in Schools including school based new apprenticeships Industry comments indicate that VIS Financial Services programs are mostly not seen as appropriate for the industry. The major issues in implementing VIS Financial Services programs are: o Obtaining placements when customer confidentiality and competition are such important issues. Age and compliance are barriers (e.g. the need to sign a legal contract in the form of a confidentiality agreement when some VIS participants may not be legally responsible). For these reasons a number of employers said they do not support work placements. o Further, there are few opportunities for meaningful and continuing employment before Certificate level III. Updated February 20057 Page 33 of 40 Industry Training Demand Profile –Financial Services Part 6 1 Industry’s top priorities for the public training system Tier 1 and Tier 2 ASIC Advisory Skills How many people require training and when (if relevant)? Industry estimates that there will be significant numbers of people who require recognition and training for compliance with ASIC’s requirements, due to turnover of staff, new entrants, and maintenance of compliance. However, it is not possible to be specific about the precise quantum of people needing training as this will be determined by company interpretation and application of the rules. Given the size of the Tasmanian Financial Services Industry, it is only possible to estimate that this will be several hundred in total, however, probably 70% of that will be handled inhouse, within the industry and will mainly be at Tier 2 level. A priority is maintaining a recognition program for those who are sole operators or in small to medium businesses and for whom cost and convenience are major issues. What will meeting this priority achieve? It will meet a need for those individuals to comply with ASIC requirements and continue operation and assist those in small to medium businesses to meet the legal requirements. What current action is in place to address this priority? Private, in-house responses using private or industry association sources of training predominate. What further action is required and what are the consequences of not taking it? 2 None identified. Certificate III in Financial Services How many people require training and when (if relevant)? It is difficult to determine numbers because of the large number of small to medium businesses involved, some having private RTO partnerships, some out of the State. It is estimated that the enrolments for Certificate III in Financial Services will increase by 50 over 2005 data (See Tables 3 and 4). What will meeting this priority achieve? Compliance with ASIC requirements is part of the prerequisites for certification. The largest group that is likely to benefit are women working in credit unions/banking/finance. Updated February 20057 Page 34 of 40 Industry Training Demand Profile –Financial Services What current action is in place to address this priority? A traineeship pathway has been developed. What further action is required and what are the consequences of not taking it? OPCET should increase funding, possibly as a TasSkills Investment Program, to meet the perceived need. Without an impetus and support for delivery, many SMEs in Financial Services will struggle to comply and/or find appropriately qualified staff. 3 Units from Certificate III in Financial Services suited to smaller organisations in rural and regional areas How many people require training and when (if relevant)? The success of the Certificate III and the growth in bookkeeping and clerical skills suggests that there is a continuing need for assistance to small businesses and organisations with skill development related to basic financial skills. This need is distributed across the larger towns (not cities) around the state; for example, St.Helens, Scottsdale. Precise numbers of potential enrolments cannot be determined. The most appropriate units may be from the Business Services Training Package. What will meeting this priority achieve? It will extend the skills in an area of increasing employment, meet skill needs of smaller organisations and aid the raising of service standards in regional areas where it might be otherwise difficult for them to achieve. What current action is in place to address this priority? Individuals, businesses and organisations are making their own arrangements. MYOB courses remain popular for small business sector. What further action is required and what are the consequences of not taking it? 4 None identified. Response to change – e.g. Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) How many people require training and when (if relevant)? Details are not yet available. Industry as a priority needs to respond to change, citing Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) as a Updated February 20057 Page 35 of 40 Industry Training Demand Profile –Financial Services significant change they are anticipating. It is expected that the Bill will be passed in parliament by the end of 2006 and implemented in stages over a two-year period. With respect to the AMF/CTF Bill, it appears accountants will not be included in the first stage of the legislation, however, members holding an Australian Financial Services (AFS) licence will be and will need to implement compliance programs to ensure they meet their obligations (CPA Australia). Other sectors expect it will give impetus to specific training. What will meeting this priority achieve? Compliance with AML requirements. What current action is in place to address this priority? None identified. It is likely that individuals, businesses and organisations will make their own arrangements. What further action is required and what are the consequences of not taking it? None identified. Updated February 20057 Page 36 of 40 Industry Training Demand Profile –Financial Services Part 7 Higher education Information on demand by industry for skills that is being met by higher education University degrees are increasingly important for the industry as a means of selecting the best candidates. Graduates are also perceived to increase client confidence that they are dealing with professional people. Both of these factors are linked to performance expectations. The industry requirements for graduate training include not only technical competence and relevance, but also the need to encompass learning that is applicable both domestically and internationally. The industry feedback to this TDP suggested that strategies such as a broader range of appropriate majors, minors, and specialised graduate certificate studies for the industry. University degrees are also increasingly important for standing with professional bodies at professional levels. For example, the Financial Planning Association of Australia (FPA) has raised the bar for Certified Financial Planner (CFP) certification, effective 1 January 2007, requiring an Under-graduate degree, Masters degree or PhD. Without professional membership progression can be limited and others more competitive. Professional membership shows employers and clients that they are dealing with somebody committed to high professional standards (i.e. well educated technically and professionally), continuing professional education and ethical principles. Information on demand by industry for skills that could be, but is not being met by higher education There are valued places in the Financial Services industry for both VET and University qualifications. The FNS04 Training Package has a practical component in the achievement of the competencies that is regarded as valuable to industry and not something that Universities offer. To meet the future needs of the industry, greater collaboration between School, VET, the University sectors and other stakeholders may improve articulation arrangements and training provision. Information on existing, likely or possible articulation from VET to higher education Survey respondents suggested that stakeholders (including industry, government, and training and educational providers)) cooperate in defining demand for cross-sectoral study paths, assessment for recognition with credit in Higher Education, and innovative paths from vocational qualifications to Higher Education (Degrees, Graduate Certificates and Graduate Diplomas) of relevance to the Financial Services industry’s needs. Updated February 20057 Page 37 of 40 Industry Training Demand Profile –Financial Services Appendix 1: The ABS Australian Standard Geographical Classification (ASGC) Map Updated February 20057 Page 38 of 40 Industry Training Demand Profile –Financial Services References ATTORNEY-GENERAL'S DEPARTMENT (2006) Anti-money laundering, Canberra, Australian Government. Available from: http://www.ag.gov.au/aml [Accessed: 30 November 2006]. AUSTRALIAN AND NEW ZEALAND INSTITUTE OF INSURANCE AND FINANCE (2006) About The Institute, Melbourne, Australian and New Zealand Institute of Insurance and Finance. Available from: http://www.theinstitute.com.au/about/index.cfm [Accessed: 30 November 2006]. AUSTRALIAN BUREAU OF STATISTICS (2001) 2001 Census of Population and Housing, Canberra, ACT, Australian Bureau of Statistics,. Available [Accessed: July]. AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY (2006) About APRA, Canberra, ACT, Australian Government. Available from: http://www.apra.gov.au/aboutApra/ [Accessed: 30 November 2006]. AUSTRALIAN SECURITIES AND INVESTMENT COMMISSION (2006) About ASIC, Canberra, ACT, Australian Government. Available from: http://www.asic.gov.au/asic/asic.nsf/byheadline/About+ASIC?opendocument [Accessed: 30 November 2006]. AUSTRALIAN STOCK EXCHANGE (2006) About the ASX, Sydney, Australian Stock Exchange. Available from: http://www.asx.com.au/asx/about/Feedback.jsp?referred=http://www.asx.com.au / [Accessed: 30 November 2006]. BIRRELL, B. (2006) The changing face of the accounting profession in Australia. Melbourne, CPA Australia. CENTRE FOR POLICY STUDIES (2004) Historical and forecast employment in ASCO classification ‘Book keepers’. Melbourne, Vic, Monash University. CPA AUSTRALIA (2006a) CPA program, Melbourne, Vic. Available from: http://www.cpaaustralia.com.au/cps/rde/xchg/SID-3F57FEDF6FD63104/cpa/hs.xsl/801_ENA_HTML.htm [Accessed: 3 November 2006]. CPA AUSTRALIA (2006b) News, Melbourne, Vic. Available from: http://www.cpaaustralia.com.au [Accessed: 3 November 2006]. FINANCIAL PLANNING ASSOCIATION (2006) About Us, Melbourne, Financial Planning Association. Available from: http://www.fpa.asn.au/ [Accessed: 30 November 2006]. FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA (2006) About FINSIA, Sydney, Financial Services Institute of Australasia. Available from: http://www.finsia.edu.au/ [Accessed: 30 November 2006]. INNOVATION AND BUSINESS SKILLS AUSTRALIA (2006) Discussion paper: Quality analysis of the FNS04 Financial Services Training Package Hawthorn, Victoria, Innovation and Business Skills Australia. Available from: http://www.ibsa.org.au/content/currentprojects/fns04.html [Accessed: 30 November 2006]. Updated February 20057 Page 39 of 40 Industry Training Demand Profile –Financial Services NATIONAL INSTITUTE OF ACCOUNTANTS (2006) About NIA, Melbourne, National Institute of Accountants. Available from: http://www.nia.org.au/ [Accessed: 30 November 2006]. NATIONAL INSURANCE BROKERS ASSOCIATION (2006) Code of Practice, Sydney, National Insurance Brokers Association. Available from: http://www.niba.com.au/html/24513.cfm [Accessed: 30 November 2006]. NATIONAL INSURANCE BROKERS ASSOCIATION OF AUSTRALIA (2006) Home Page, Sydney, National Insurance Brokers Association Available from: http://www.niba.com.au/niba/html/default.cfm [Accessed: October 2006]. THE OFFICE OF THE PRIVACY COMMISSIONER (2006) Inquiry into the Anti-Money Laundering and Counter-Terrorism Financing Bill 2006 and the Anti-Money Laundering and Counter-Terrorism Financing (Transitional Provisions and Consequential Amendments) Bill 2006, [online]. Available from: http://www.privacy.gov.au/publications/subamlctfb.html [Accessed: 30 November 2006]. TRANSPARENCY INTERNATIONAL (2006) Corruption perspectives index world ranking, [online]. Available from: http://www.axiss.gov.au/index.cfm?event=object.showIndexPage&objectid=3F4E6 55C-BCD6-81AC-1905CA0E25BD5A02 [Accessed: 21 October 2006]. Updated February 20057 Page 40 of 40
