AN
INSPIRED
Identity
Finsia Brand Identity
Finsia core elements guidelines 2010
EMBRACING
CHANGE
CREATING
OPPORTUNITY
FINSIA 2014 ANNUAL REPORT
OVERVIEW
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
EMBRACING
CHANGE
CREATING
OPPORTUNITY
AS OUR FINANCIAL
LANDSCAPE EXPERIENCES
A PERIOD OF SEISMIC
CHANGE, FINSIA IS RAPIDLY
EVOLVING TO SHAPE THE
FUTURE OF OUR INDUSTRY.
THE 2014 ANNUAL REPORT
EXPLORES FOUR KEY
THEMES THAT WILL ENABLE
US TO INSPIRE AND LEAD
THE CHANGES THAT
WILL ASSURE OUR
CONTINUED SUCCESS.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
2
OVERVIEW
FROM THE
PRESIDENT
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
FROM THE PRESIDENT
It has been a very busy final year as
your President. Working closely with
your CEO, Russell Thomas, and the
senior executive team, the Board has:
»C
ontinued our investment into
a new digital direction, striving
to improve the product and
service offering and relevance
by membership category;
»M
aintained a focus on strong
cost control, seeking to return
the organisation to a financially
sustainable position within the
short to medium term;
»R
ecruited new talent to deepen
our relationship with the learning
and development teams of the
major employers and acquired
skills in the fields of digital and
media; and
»D
eepened our relationship with
senior representatives of the major
employers and universities through
appointments to the Board, regional
councils and Industry Councils.
Possibly the most exciting initiative
for this year has been the launch of
our Member Portal. This is a major
and groundbreaking digital platform,
changing the way our members
interact with us and each other,
taking us well and truly into the
technological age.
It offers career planning and career
diagnostic tools and provides
members new ways of accessing
unique insights and content,
connecting with other members, and
building a profile within the industry.
Many members have been in the
industry for a large part of their
careers and some are just beginning
– either way – their support,
contribution and engagement with
us has been impressive. The time
and dedication they have afforded
Finsia and the industry is testament
to what a difference can be made
by ‘giving back’. I encourage anyone
who is able to dedicate some time,
in their busy schedules, to do so.
As President, I am very proud to
have seen the positive results of this
activity.
Our Industry Councils, established
last year, include 80 professionals
across the four major sectors of
finance, providing excellent input
and discussion around the issues
affecting the industry.
The Financial System Inquiry; Finsia’s
new digital Member Portal; Financial
Advice exam advocacy; and our
new Accreditation Framework have
all been a major part of the council
agendas.
Last year’s roundtable series focused
specifically on the Financial System
Inquiry and we are now working to
deliver on its findings for the better
of the industry and its practitioners.
Our Regional Councils played a
significant role in early 2014 to assist
Finsia in maintaining its connectivity
and relevance across the regions.
During the year the Board welcomed
Bruno Bellon SF Fin to the Board
as the representative for South
Australia and Northern Territory, and
farewelled both Jane Dharam SF Fin
and Professor Michael Skully SF Fin
– two longstanding directors who
made a valuable contribution to the
Board and served Finsia tirelessly.
In August 2014, Kate Costello,
Managing Director of Governance
Matters, was appointed to review our
governance structures and practices.
Her recommendations about
possible constitutional and policy
changes to adopt best practice
governance have been embraced by
the Board to set a strong model for
the future.
These recommendations will be
put to members for vote at the
AGM on 28 May 2015. Should these
amendments be approved by the
members, the Board will downsize,
with a number of longstanding
directors likely to stand down to
facilitate this restructure.
In addition, the Board continues to
seek to add new skills to ensure the
Board has the necessary skill sets to
help drive the digital future Finsia
has embarked upon.
We are making bold initiatives into
digitisation, refreshing our brand,
recommending changes to our
governance structure and making
strong moves into education, policy
and advocacy to further drive the
highest standards of excellence for
the industry.
Thank you to all our members
who have provided their time and
support to Finsia; to my colleagues
on the Board for their commitment
and contribution to the Board
room discussion; and to the Finsia
management and staff over the
past three years since I have been
President. It has been a privilege
to be in this role.
Marianne Birch SF Fin
President
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
3
OVERVIEW
FROM THE
PRESIDENT
FROM
THE
CEO
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
FROM THE CEO
In 2014 Finsia made a significant
expansion from a focus on training
and events, to one that has
significantly embraced a digital future,
better aligned to the professional
development and mentoring needs
of a changing workforce.
At its core, Finsia’s programs assist
young professionals to enter the
industry and to track their further
education and work experience to
industry standards.
For Senior Associates and Fellows,
Finsia provides unique access to
a community of practice in which
mentoring, educating, industry
contribution and policy forums
hone professional skills and build
on industry profiles.
In 2014, Finsia’s flagship mentoring
program continued its success.
We also launched CareerConnect
which focuses on students and
young professionals, with a
group-mentoring component.
In recognition of an increased
focus on career resources and
changing composition and nature
of professional events, Finsia
made substantial savings of
over $1.2 million per annum by
restructuring its regional presence
and professional development/event
delivery model in early 2014.
On this front, Finsia progressed
with stronger employer alignment,
establishing four new Industry
Councils, with senior representatives
from each of the major institutions.
In 2014, Finsia laid all the necessary
foundations to adapt its historical
mission (raising professional
standards) to the changing financial
services landscape.
Over the course of the year, the four
councils examined the industry’s
future capability needs, and existing
education and accreditation
standards.
This investment will place Finsia
at an advantage in matching the
needs of younger, less experienced
professionals with those who are
willing and able to ‘give back’. In parallel, the national team
consulted widely with senior
members and regional councils
on the volunteer framework.
Over the medium term, Finsia’s
subscription revenue will be
supplemented with the commercial
opportunities unlocked by the
digital capability provided by
the new Member Portal. The new points–based practitioner
model and accreditation framework
will be in operation from 1 July 2015.
In partnership with Macquarie
Applied Finance Centre, Finsia
launched a new postgraduate
certificate in applied finance.
This innovative program draws
inspiration from the emergence
of new finance professionals,
whose backgrounds in information
architecture, engineering,
behavioural economics and life
sciences, are tackling similar
challenges in fresh ways – how do
we provide investment services
that are efficient, informed and
trustworthy?
The Finsia team is invigorated
by these changes and with the
opportunity to work with this
dynamic business model, providing
a sound basis for financial
sustainability and investment
for members for the future.
Russell Thomas F Fin
CEO and Managing Director
Members continue to be supported
by active regional councils, who,
together with a national team,
delivered over 150 signature
events, mentoring, senior member
roundtables, YFP events and
‘lunch and learn’ sessions.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
4
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
2014
AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
2014 AT A GLANCE
THE YEAR WAS ONE OF DYNAMIC ACTION. WE TRANSFORMED THE
ORGANISATION, RESTRUCTURED OUR OPERATIONS, AND LAUNCHED
INTO THE DIGITAL WORLD WITH OUR MAJOR INVESTMENT IN THE NEW
FINSIA MEMBERS PORTAL.
WE ACHIEVED NEW LEVELS OF MEMBER ENGAGEMENT, CONTINUED TO
FRAME THE INDUSTRY DEBATE THROUGH THE WORK OF OUR POLICY
ROUNDTABLES AND INDUSTRY COUNCILS, DEVELOPED NEW PRODUCTS
AND SERVICES, AND DELIVERED UNIQUE AND COMPELLING INSIGHTS,
MEMBER PROFILES AND NEWS.
Q1
Q2
LAUNCH OF MAJOR
RESEARCH PAPER
– Regulating Foreign Direct
Investment in Australia.
LUNCH FORUM ON
CAPITAL FLOWS AND THE
AUSTRALIAN DOLLAR
– Guy Debelle, Assistant
Governor (Financial Markets)
of the RBA, speaks at our
Adelaide event.
OVER 500 ATTEND OUR
FLAGSHIP QUEENSLAND
EVENT ECONOMIC
INDICATORS – to kick off
the year.
LAUNCH OF OUR
INNOVATIVE LIGHTBULB
MOMENTS VIDEO SERIES
with Australian business
leaders Ian Narev SF Fin,
Brian Hartzer and Gordon
Cairns sharing their personal
moment of transformation
about gender diversity in
the workplace.
OVER 500 ATTEND
THE MALE CHAMPIONS
OF CHANGE EVENT
in Sydney – with an equally
successful follow-up event
in Melbourne in early 2015.
SECOND REPORT IN THE
RETIREMENT RISK ZONE
SERIES RELEASED – How
safe are safe withdrawal
rates in retirement?
FINSIA LEADERSHIP
LUNCH – Phil Chronican
SF Fin, Australian CEO
of ANZ, speaks at our
Melbourne event.
FINSIA LODGES OUR
SUBMISSION to the
Financial System Inquiry.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
Q3
OUR FLAGSHIP PROGRAM
LEADERS IN OUR MIDST
runs across all regions. This
included senior leaders like
Mike Hirst SF Fin, Managing
Director of Bendigo and
Adelaide Bank, passing on
experiences, wisdom to
future and emerging leaders.
LAUNCH OF THE ‘THEY
SAY’ VIDEO SERIES, part
of our groundbreaking
Diversity Dividend initiative.
ANNUAL BRING OUR
DAUGHTERS TO WORK
DAY, with increased
involvement from major
corporates.
ASIAN SECURITIES
AND INVESTMENTS
FEDERATION (ASIF) AGM
– Russell Thomas CEO &
Managing Director has
deepened our involvement
and leadership within ASIF.
Q4
ANNOUNCED MAJOR
EDUCATION PARTNERSHIP
with Macquarie Applied
Finance Centre.
HUGH DT WILLIAMSON
SCHOLARSHIP AWARDED
to dual winners –
Jacki Chorazy SA Fin,
Mercer Investments, and
Tim Carleton SA Fin,
Auscap Asset Management.
LAUNCH OF THE 3RD
FINSIA SURVEY IN THE
SERIES Significance of
Gender Divide in Financial
Services.
LAUNCH OF A JOINT
REPORT WITH
SYDNEY UNIVERSITY
The Development of
Financial Services in China:
The Role for Australia.
2014 FINSIA FINANCIAL
SERVICES CONFERENCE
with over 350 of the
industry’s most senior
execs and up-and-coming
leaders.
LAUNCH OF OUR NEW
STUDENT PROGRAM
CAREERCONNECT
– aimed at students,
university graduates and
market entrants.
SENIOR MEMBER
DINNERS held throughout
the regions and in
New Zealand.
FINSIA SUBMISSION ON
NATIONAL EXAM raises
bar on Financial Advice.
2014 ANNUAL REPORT
5
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
4: O
PERATIONAL EXCELLENCE
RESPONSIVE CAPABILITY:
AS OUR INDUSTRY EVOLVES,
HOW WILL WE INSPIRE
AND DEVELOP THE FINANCE
PROFESSIONALS OF THE FUTURE?
Finsia is responding to the challenges of rapid and transformative
change by embracing the digital opportunity and using it to create
deeper relationships with our members.
Digital transformation in our business will equip Finsia members with
the tools and insights to respond to change and embrace opportunity.
1A
1B
1C
1D
DIGITAL DISRUPTION,
NEW PLATFORMS
AND PROVIDERS
INNOVATION
IN DESIGN OF
RETIREMENT
FINANCE SOLUTIONS
FINANCIAL
INTEGRATION
WITH ASIA
DIVERSITY
AND STRENGTH
READ MORE
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
READ MORE
READ MORE
READ MORE
2014 ANNUAL REPORT
6
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
ABC D
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
2: D
EEPER UNDERSTANDING
ANNUAL
FINANCIAL
REPORT
3: GIVING BACK
4: OPERATIONAL EXCELLENCE
VISION IN ACTION / RESPONSIVE CAPABILITY
DIGITAL DISRUPTION, NEW PLATFORMS
AND PROVIDERS
The digital transformation of
Finsia is reaching every corner
of our business and inspiring
us to develop new skills, create
new processes and develop
entirely new product streams.
Greater responsiveness
Working alongside Deloitte
Digital we launched a new
look and responsive website
in April 2014.
As part of this we moved
more career development
and program delivery online,
and transformed Finsia’s
INFINANCE and JASSA
publications to online-only
formats.
Visitors are taking more time
to explore the site in greater
depth and our responsive
design has driven an increase
in traffic from smartphones
and tablets.
The Members Portal
Profiling our community
Following the AGM, Finsia
commissioned Deloitte Digital
to deliver the new Members
Portal.
We envisage that an online
Finsia profile will become
indispensable. Think of it
as a verified community
of professionals.
This is the largest digital
project Finsia has undertaken
and will revolutionise the way
in which we communicate with
our members.
By the middle of 2015, the
pre-eminent position of Finsia
as a digital career builder will
be enhanced through the
use of best-in-breed content
and customer relationship
management platforms
that deliver the power of
personalised communications
and targeted website content.
Members will enjoy a
wealth of insights and
connections within the
portal and be able to
interact dynamically
with Finsia’s network of
practising professionals.
53%
MORE THAN HALF
OF AUSTRALIANS ARE
DIGITAL OMNIVORES
All members will have a profile.
Their status will be reflected
in their level of membership
and past achievements but
the focus will be on where
members are going and how
Finsia can help them.
Mapping the future
The year 2015 will see our
vision better defined as
targeted communications
hosted on sophisticated new
platforms will bring us closer
to our members.
(UP FROM 28%
LAST YEAR)
81%
OF AUSSIES NOW
OWN SMARTPHONES,
63% OWN TABLETS
AND 87% OWN
LAPTOPS
An exciting year lies ahead!
THIS MEANS
WE ARE CONSUMING
CONTENT IN
DIFFERENT FORMS
SIMULTANEOUSLY
Sourced from: Deloitte media consumer survey – The digital tipping points are here.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
7
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
COUNCILS AND
COMMITTEES
IN ACTION
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
2: D
EEPER UNDERSTANDING
ABC D
ANNUAL
FINANCIAL
REPORT
3: GIVING BACK
4: OPERATIONAL EXCELLENCE
VISION IN ACTION / RESPONSIVE CAPABILITY
INNOVATION IN DESIGN OF
RETIREMENT FINANCE SOLUTIONS
The superannuation guarantee
is well into its third decade.
Australia’s retirement savings
system already holds assets in
excess of GDP and by 2040 is
expected to total $9 trillion.
Through our roundtable series
in 2014, we asked whether
the superannuation system
is meeting its mandate.
The insights gathered were
one plank of the member
consultation that informed our
submission to the Financial
System Inquiry (FSI).
The final FSI report called
for bipartisan support to
enshrine the objectives of
the superannuation system
in legislation.
Finsia is behind this call,
because a strong super system
contributes to the wellbeing
of Australia as it tackles
population ageing.
We have been at the
forefront in shifting the
industry’s focus from
the savings Australians
accumulate while
they work to ensuring
adequate, sustainable
income throughout
retirement.
We will continue to engage
with our members and
collaborate with the industry
this year about the future of
the super system through our
roundtable series.
In March, we released research
that challenged conventional
wisdom about safe withdrawal
rates of retirement savings.
This year, we will release the
third instalment in this series,
which outlines an innovative
asset allocation strategy to
ensure that retirement savings
last the course and meet the
changing health and wellbeing
needs of retirees.
The number of over 85s is growing at
a rapid rate. Ensuring wellbeing for an
ageing population is a challenge Finsia
members are equipped to meet.
1984
TODAY
120,862
Our industry’s
expertise in wealth
management is globally
renowned, and will be
an important source
of innovation for the
finance sector now
and in the future.
2024
AGED 85+
2044
455,390
4x AS MANY
601,815
5x AS MANY
1,655,997
14x AS MANY
Sourced from: The McCrindle Blog – Demand vs Supply: Australia’s Aged Care Puzzle.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
8
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
ABC D
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
2: D
EEPER UNDERSTANDING
ANNUAL
FINANCIAL
REPORT
3: GIVING BACK
4: OPERATIONAL EXCELLENCE
VISION IN ACTION / RESPONSIVE CAPABILITY
FINANCIAL INTEGRATION
WITH ASIA
As free trade agreements
with China, Japan
and South Korea
are concluded,
Finsia is anticipating
and exploring the
opportunities for
Australia in the
Asian region.
In February 2014, we delivered
a discussion paper that lobbied
for the increasing transparency
of Foreign Investment Review
Board decisions and educated
the public on the benefits of
direct foreign investment.
In June, we worked with Finsia
residents in Singapore to study
the expatriate experience and
understand how the Australian
government, employers and
member associations can
better promote our financial
services talent.
Later in the year, in collaboration
with China Studies Centre, we
reported on the development
of financial services in China
and encouraged a shift in
thinking from the mining boom
to the opportunities for the
export of services.
This year, Finsia is a Think-Tank
partner in the China Australia
Millennial Project – an innovation
program for outstanding
young Australian and Chinese
leaders – where delegates will
explore the opportunities in
the China-Australia Free Trade
Agreement for engagement
and collaboration.
The program will culminate in
a summit to be held in Sydney
as part of the Vivid festival.
Alongside these initiatives,
Finsia has also raised its
involvement with the Asia
Securities and Investments
Federation (ASIF) – a forum
of finance and investment
professionals across the region.
We’re playing a greater role
in the federation’s policy and
advocacy initiatives, including
the development of the ASIF
annual conference and AGM.
In 2014, Finsia signed a heads
of agreement for mutual
recognition with the Hong Kong
Securities Institute. This year,
we will conclude additional
agreements as part of our
program to recognise the
portability of skills and talent.
CHINA
IS NUMBER 1
GLOBALLY
GLOBAL PATENT
APPLICATIONS
MANUFACTURING
ECONOMY
EXPORTER
OF GOODS
WORLD’S
LARGEST
ECONOMY
OVERTAKING THE
UNITED STATES
Sourced from: Thomson Reuters.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
9
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
ABC D
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
2: D
EEPER UNDERSTANDING
ANNUAL
FINANCIAL
REPORT
3: GIVING BACK
4: OPERATIONAL EXCELLENCE
VISION IN ACTION / RESPONSIVE CAPABILITY
DIVERSITY
AND STRENGTH
Finsia initiatives
continue to champion
the dividends of
gender diversity.
Significance of the
gender divide
Last year, 1,298 participants
across Australia and New
Zealand completed our third
survey examining perceptions
of the gender divide within
financial services.
The survey revealed that
42.9% of women and 34.7%
of men believe that the gender
reporting requirements
administered by the Workplace
Gender Equality Agency will
prompt organisations to tackle
gender inequality.
They Say…
As a follow-up to our
breakthrough series,
Lightbulb Moments, Finsia
has challenged the myths that
prevail in Australian business
about women in leadership
roles with a film project called
‘They Say...’
The series features Ann Sherry
(CEO, Carnival Australia),
Gai McGrath (Westpac),
Olivia Engel (State Street
Global Advisors) and
Angela French (GE Capital).
They Say...
women lack ambition
Each of them challenges the
things ‘they say’ about women
in business:
» that women lack ambition
» t he workplace is a
meritocracy
Some people think ambition is solely
about getting to the top. That’s not
how I think about it.
Gai McGrath
» that women cannot negotiate
» t hat women can’t have
children and a senior
level career.
The series has been used by a
number of organisations to start
a conversation about gender
diversity in the workplace and
continues to be a discussion
point on social media.
They Say...
women can’t negotiate
Male Champions of Change
We’ve supported the
Male Champions of Change
with events in Sydney
and Melbourne.
The group is led by
Liz Broderick SF Fin,
Australia’s Sex Discrimination
Commissioner and supported
by many industry leaders,
including Ian Narev SF Fin,
CEO of Commonwealth Bank,
Mike Smith, CEO of ANZ and
Simon Rothery SF Fin, CEO
of Goldman Sachs.
Each event attracted around
500 attendees and has
sparked lively debate about
how to create diverse and
inclusive workplaces.
What nonsense, women can’t
negotiate. Women negotiate all the
time. They negotiate with their kids.
They negotiate when they shop.
They negotiate houses.
They’re the buyers of most things.
They’re negotiating constantly.
Ann Sherry
The full series is available on
our website.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
10
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
4: O
PERATIONAL EXCELLENCE
DEEPER UNDERSTANDING:
WE’LL STIMULATE THE CONVERSATIONS
THAT WILL GIVE DIRECTION TO
MEMBERS AT CRITICAL MOMENTS
IN THEIR CAREERS.
The power of the Finsia network offers unique value to students
or career changers who are entering our industry, and also to
financial professionals who are looking for their next role.
We are continuing to refine and renew our programs and take
advantage of the digital opportunity to extend our reach across
the industry.
2A
2B
2C
GIVING
GRADUATES
AN EDGE
THE INSIDE
TRACK ON
PROFESSIONAL
MEMBERSHIP
AGENDA-SETTING
EVENTS AND
FORUMS
READ MORE
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
READ MORE
READ MORE
2014 ANNUAL REPORT
11
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
ABC 3: GIVING BACK
4: OPERATIONAL EXCELLENCE
VISION IN ACTION / DEEPER UNDERSTANDING
GIVING GRADUATES
AN EDGE
Career guidance is at the
very heart of Finsia’s purpose.
We help entrants understand
the structure and trends of the
industry so that their first step
will be in the right direction and
they’ll find the ideal role.
In 2014, we designed
career-match and industry
profiles and these will make
their first appearance on the
Member Portal in May 2015.
Over time, we’ll enhance
these online tools and
complement them with
face-to-face programs.
CareerConnect
After the initial success of
FastTrack in 2014, we saw
the opportunity to revise and
restructure the program and
decided to relaunch it under
a new name.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
CareerConnect kicked off with
a sold-out program in Sydney,
with a networking workshop
run by Tim Rossi SF Fin.
A key selling point
of CareerConnect is
access to ‘Buddies’ –
these are emerging
finance professionals
and past mentees
who are keen to start
‘giving back’, as part of
their own growth and
development.
In return for sharing valuable
insights, they build their
coaching and leadership skills
and extend their network
among international students.
Their contribution creates
a fast track to membership
elevation. This will be
recognised in our new
accreditation framework.
We anticipate corporate
interest in the program as it
provides cost-effective staff
development for their
younger employees.
CAREERCONNECT
OFFERS A
VARIETY OF
BENEFITS TO
GRADUATES
For a program fee of $95,
students receive one
full-year student membership,
participate in a networking
workshop, have two meetings
with a ‘buddy’ and unlimited
access to online modules and
resource kits.
CareerConnect’s summer
program sold out a week in
advance – a strong sign for the
success of the program, which
we will offer ten times in 2015.
UNIQUE ACCESS
TO WORKSHOPS
AND ONLINE
RESOURCES
SUPPORT AND
INDUSTRY
KNOWLEDGE
FROM ‘BUDDIES’
2014 ANNUAL REPORT
12
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
ABC 3: GIVING BACK
4: OPERATIONAL EXCELLENCE
VISION IN ACTION / DEEPER UNDERSTANDING
THE INSIDE TRACK ON
PROFESSIONAL MEMBERSHIP
Our Financial Services
Associate program is
aimed at postgraduate
students of finance
in Australia and
internationally, recent
entrants to our industry
and prospective career
changers who are
looking for an opening
within Australian
financial services.
The program fast-tracks
professional membership
of Finsia, and provides an
accessible overview of careers
in finance that examines
changes within the industry
and explores the impact of new
technology, regulatory reform
and increasing competition.
Including video interviews with
senior industry figures, the
program provides invaluable
insights to candidates
preparing to join the industry.
Graduate Certificate of
Finance (GCertFin)
In November 2014, Finsia
announced a new partnership
with Macquarie Applied
Finance Centre (MAFC).
As a result of the MAFC
relationship a new program
has been developed, the
Graduate Certificate of Finance
(GCertFin).
This program will be offered
to graduates with any degree
who are seeking to pursue a
career in financial services.
GCertFin students will receive
one year of free Finsia
membership, have access to
a number of tailored events
and be eligible for a range
of member benefits.
Finsia will also provide
exclusive content about the
industry, including video
interviews and case studies.
Finsia is partnering with MAFC
for the benefit of individuals
who are working or studying
in a non-finance field and are
looking to transition into a
career in the finance industry,
or individuals who have just
started their working lives
and are thinking about future
career progression.
Students acquire the
fundamental finance skills and
knowledge needed to expand
career options, and Finsia
provides the content for one
of the four compulsory units
in the MAFC program, Case
studies in Applied Finance.
IN 2013
20%
IN 2014
244,638
OF FIRST-YEAR
STUDENTS DROPPED
OUT, CHANGED
COURSE, OR SWITCHED
UNIVERSITIES.
STUDENTS STARTED
AN UNDERGRADUATE
DEGREE IN AUSTRALIA
A recent survey of more than 1,000 Australians
found that more than two-thirds of people aged
between 25 and 29 think that they should have
spent more time considering the study or career
choice they made after high school.
Sourced from: The New Daily – Why do so many first-year uni students drop out?
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
13
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
ABC 3: GIVING BACK
4: OPERATIONAL EXCELLENCE
VISION IN ACTION / DEEPER UNDERSTANDING
AGENDA-SETTING EVENTS
AND FORUMS
YFP and Leaders in Our Midst
Finsia’s Young Finance
Professional (YFP) Committee
staged a series of events to
develop young professionals
and build their engagement
with the industry.
The hallmark YFP event is
Leaders in Our Midst (LIOM).
LIOM provides a unique
opportunity for Future and
Emerging leaders to meet
industry leaders in a casual
environment.
It’s a speed-mentoring
event with extraordinary
networking potential
that pulls in 100+
participants in each
state, every year.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
Given the strong support from
upper echelons of our industry,
it’s the go-to-event of the
YFP calendar.
Last year’s leaders included
the COO of Bank of America,
former Chair of Queensland
Treasury Corporation, CEO
and Management Director of
Canstar, COO of Global Finance
Advisory at Rothschild, and
the Chair of OnePath Funds
management.
In 2014, we also hosted
and supported a number
of leadership events across
Australia and New Zealand
that included, among others:
Cameron Clyne, Craig
Drummond SF Fin, Elizabeth
Proust AO, Ian Narev
SF Fin, Simon Rothery SF Fin,
Guy Debelle, Wayne Byres
SF Fin, Bernie Brookes,
Sankar Narayan, Nicolette
Rubinstein, Sophie Polednik
SA Fin, Danielle Press and
many others.
Finsia and the Financial
System Inquiry
We contributed to the
Financial System Inquiry
through a program of
consultation and engagement
with both members and the
wider industry.
We staged a series of
roundtable discussions that
examined core issues such as
Australia’s role as a regional
financial services provider, how
our finance system contributes
to the effective funding of the
economy, our superannuation
system’s mandate, the
establishment of a corporate
bond market and infrastructure
financing.
Insights from these events
informed our submissions to
the inquiry.
Roundtable series 2015
The series will continue
in 2015 and consider such
challenges as promoting a
turnaround in Australian culture,
developing trust in digital
banking and encouraging
the internationalisation of
the renminbi.
We’ll scrutinise Australia’s Free
Trade Agreement with China,
explore the objectives of the
superannuation system and
examine the taxation treatment
of debt and equity.
Finsia will partner with a range
of law and accounting firms
to deliver these events and
provide more opportunities for
members at Fellow and Senior
Fellow levels to participate.
We’ll continue the success of
our roundtable series in 2014
by inviting Fellows and Senior
Fellows to contribute their vital
knowledge and experience
to a series of forums and
debates on big issues such
as regulatory challenges
and standards of ethical and
professional conduct.
2014 ANNUAL REPORT
14
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
4: O
PERATIONAL EXCELLENCE
GIVING BACK:
WE’RE CREATING A NETWORK OF
VOLUNTEERS WHO SHARE THEIR
STANDARDS OF EXCELLENCE WITH
OUR COMMUNITY.
A clear endorsement of the role Finsia plays is the willingness
of our members to share their knowledge and experience and
give back to our community by supporting and mentoring
those who are joining us or seeking to expand their horizons.
This year, Finsia has taken steps to encourage this process
while making it easier and more effective.
3A
3B
3C
3D
3E
NEW
ACCREDITATION
FRAMEWORK
VITAL, LOCALLYFOCUSED
REGIONAL
COUNCIL AND
YOUNG FINANCE
PROFESSIONAL
NETWORKS
PARTNERSHIPS
WITH LOCAL
UNIVERSITIES
MENTORING
TO SUPPORT
MEMBERS AT
KEY MOMENTS
IN THEIR
CAREERS
THE HUGH DT
WILLIAMSON
SCHOLARSHIP
READ MORE
READ MORE
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
READ MORE
READ MORE
READ MORE
2014 ANNUAL REPORT
15
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
ABC DE
4: OPERATIONAL EXCELLENCE
VISION IN ACTION / GIVING BACK
NEW ACCREDITATION FRAMEWORK
Members who get
involved and give back to
Finsia are the backbone
of the organisation
and personify the
professionalism that we
support and represent
inside the industry.
During 2014, the regional
councils mapped the
framework for recognising
member contributions to Finsia.
The outcome was the
development of the Finsia
Points scheme.
The award of Fellow or Senior
Fellow status has always been
founded on contribution to
Finsia and the industry.
Finsia Points will enable us to
calibrate these contributions
and reward them fairly.
On the advice of the councils,
we’ll be awarding points for
a range of contributions that
include mentoring, lecturing,
and participating in university
taskforces or policy initiatives.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
What will this mean for our
members?
Finsia Points will help members
track their professional
development and work towards
a higher membership category.
And, over time, we’ll provide
exclusive services to each
level of membership – much
like a frequent flyer rewards
program.
Our points scheme recognises your
contribution to industry, and is a
signal to employers and peers of your
experience and professional capability.
MENTORING
For example, we may stage a
series of invitation only events
that are exclusive to Fellows
and Senior Fellows.
Finsia Points will also drive
member engagement.
With the new digital platform,
we’ll be able to segment our
members on the basis of their
points-level and then target
those groups and individuals
whose contribution we
would like to stimulate and
encourage.
The next steps are to promote
the scheme and get our
members actively involved.
LECTURING
UNIVERSITY
TASKFORCES
PARTICIPATION
IN POLICY
2014 ANNUAL REPORT
16
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
ABC DE
4: OPERATIONAL EXCELLENCE
VISION IN ACTION / GIVING BACK
VITAL, LOCALLY-FOCUSED REGIONAL
COUNCIL AND YOUNG FINANCE
PROFESSIONAL NETWORKS
Diversity of membership
enables Finsia to understand
and share insights with its
members on industry-wide
issues.
Our members have a
sophisticated understanding
of how their current role
contributes to providing capital
funding for enterprises and
to the financial wellbeing of
individuals in the broader
community.
Because we can offer
our members insights
and connections to
people in different
industry positions, they
are better equipped
for future career
opportunities and
can take charge of
their own professional
development and
respond positively
to industry trends.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
In 2014, our members shared
their insights and experience
at a number of events:
»U
TS Investment Society
panel event
»U
NSW Young Alumni end
of year cocktail event
»F
MAA and UNIT women in
finance event
»F
intech revolution – Finsia
annual student event
»C
urtin Commerce Club
industry engagement evening
»U
niversity of Queensland
Banking Association
Corporate Connects
networking events
»G
riffith Business School
postgraduate meet and greet
As well as these events,
our members dedicated
their time to our Fast Track,
CareerConnect and Mentoring
programs.
Finsia gratefully
acknowledges the
many members who
have helped deliver
programs for new
finance professionals
and emerging leaders
across Australia and
New Zealand.
FINSIA
MEMBERS
STRENGTHEN
THEIR INDUSTRY
THROUGH:
SHARING
INSIGHTS AND
KNOWLEDGE AT
KEY EVENTS
MENTORING
AND BUDDY
PROGRAMS
YOUNG FINANCE
PROFESSIONAL
AND LEADERSHIP
EVENTS
»R
MIT Student Society
industry night
2014 ANNUAL REPORT
17
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
ABC DE
4: OPERATIONAL EXCELLENCE
VISION IN ACTION / GIVING BACK
PARTNERSHIP WITH
LOCAL UNIVERSITIES
Finsia has developed a
five-point engagement
strategy that targets business
schools and finance faculties,
academic staff, student
associations, career centres
and alumni.
Their involvement will take
the form of guest lectures,
case study presentations,
membership of course
advisory committees and
contribution to curriculum
development.
Our goal is to build
brand awareness by
having our members
actively involved in the
development of course
curricula and, while
sharing their expertise
with students, create
channels to promote
Finsia programs and
membership.
This initiative was launched
in 2014 through Finsia
partnerships with Macquarie
Applied Finance Centre,
UTS Business School, UNSW
Business School and QUT
Business School.
These partnerships will afford
our members the opportunity
to provide an applied finance
perspective to banking,
finance, economics and
business courses offered by
the leading business schools at
universities around Australia.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
We plan to finalise more
agreements with leading
business schools in 2015.
1
BUSINESS
SCHOOLS
AND FINANCE
FACULTIES
ACADEMIC
STAFF
2
The five points of
engagement are:
5
4
3
ALUMNI
CAREER
CENTRES
STUDENT
ASSOCIATIONS
2014 ANNUAL REPORT
18
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
ABC DE
4: OPERATIONAL EXCELLENCE
VISION IN ACTION / GIVING BACK
MENTORING TO SUPPORT MEMBERS
AT KEY MOMENTS IN THEIR CAREERS
Our mentoring program went
from strength to strength with
growing participation in 2014.
Finsia’s flagship
mentoring program is
now run nationally and
places a mid-career
finance professional
with an industry sector
leader in a structured
16 week course.
The pair set goals, meet
regularly to discuss progress
and identify what steps the
mentee needs to take to make
real progress in their career.
What our mentees have said...
What our mentors have said...
“The Finsia mentoring program has been a very
successful development opportunity for me.
“This is my third year as a mentor which as with
previous mentoring roles I have really enjoyed being
matched with very interesting, determined financial
professionals from all walks of life.
Not only have I received practical advice on how to
achieve short-term career milestones, and constructive
feedback on what I can do to ensure long-term success
in my career, I have extended my networks and forged
a genuine partnership with my mentor.
I have already recommended this to my colleagues.”
“The Finsia mentoring program matched me with a
great mentor who provided candid feedback on my
personal strengths and professional skills.
I would strongly urge anyone in financial services,
having worked in the industry for a while or just
starting out, to take the mentoring program, which
will enable them to gain access to experienced
professionals that can provide their own personal
experiences, highs and lows, ways to achieve a career
path and benefits of working in an industry which can
be rewarding at the best of times.
Discussions with my mentor stretched my thinking,
encouraging me to take on career challenges at which
I would have otherwise hesitated.
As a mentor, it has enabled me to improve my own
managerial and coaching skills within my own funds
management business.
Together with the opportunity to network with other
mentors and mentees, the program instilled confidence
and helped position me optimally on my career path.”
I look forward to continuing to be part of the Finsia
mentoring program.”
Katrina Dunn SA Fin,
Manager Corporate Clients – New Business, Corporate Trust –
Regulated Fiduciary Services, Perpetual
Madu Mapa Affiliate Member,
Para Planner, AMP
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
The program continues to give me an insight into the
views and aspirations of finance individuals that have
defined goals to achieve in their career.
Nicholas Pereza-Matthews F Fin,
Managing Director – Fund Manager, Viridian Funds Management
2014 ANNUAL REPORT
19
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
ABC DE
4: OPERATIONAL EXCELLENCE
VISION IN ACTION / GIVING BACK
THE HUGH DT WILLIAMSON
SCHOLARSHIP
In 2014, Finsia recognised
the leadership potential
of two exceptional
young finance
professionals through
the Hugh DT Williamson
Scholarship award.
These scholarships, valued at
$16,500 each, were given to
Jacki Chorazy SA Fin and
Tim Carleton SA Fin.
Jacki, a Principal at Mercer
Investments, has a history of
giving back to the community
through her involvement in
Finsia’s Funds and Asset
Management Industry Council
and Women in Super.
Recently, she has focused
her research efforts on
the retirement adequacy
challenge and is passionate
about the wealth outcomes of
superannuation fund members.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
Jacki plans to use her
scholarship to complete
INSEAD’s Leadership Transition
Program.
In her words, “It’s tailored to
dealing with that period where
you’re transitioning from being
a subject matter expert to
developing leadership skills.”
Tim, a Principal and Portfolio
Manager at Auscap Asset
Management, has contributed
to the investment community
through the establishment of
Auscap – an emerging funds
management business that
has just been awarded Best
New Asian Hedge Fund at the
Eureka Hedge Fund Awards.
“Finsia is proud to
support and further
the careers of young
finance professionals
who contribute positive
cultural change and
innovation to the
industry.”
CEO Russell Thomas,
congratulating Jacki and Tim on
their outstanding applications.
Applications for the 2015
Scholarships will open in
mid year.
Jacki Chorazy SA Fin
Principal
Mercer Investments
Tim Carleton SA Fin
Principal and Portfolio Manager
Auscap Asset Management
Tim plans to use his scholarship
to complete the High Potentials
Leadership Program at Harvard
Business School as he pursues
his ambition of building a
business that is “known as the
gold standard”.
2014 ANNUAL REPORT
20
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
4: O
PERATIONAL EXCELLENCE
OPERATIONAL EXCELLENCE:
HOW WILL WE ACHIEVE FINANCIAL
SUSTAINABILITY AND A FIT-FORPURPOSE GOVERNANCE MODEL?
The Board is confident that we are on track to return Finsia
to an operational break-even position by 2016, unlock future
revenue opportunities, build our membership base, increase
the efficacy of our role within the industry, and support our key
strategies for sustaining long-term pre-eminence and relevance
to the financial services industry.
4A
4B
4C
4D
RESTRUCTURE OF
OUR OPERATIONAL
MODEL
INVESTMENT IN
DIGITAL CAPABILITY
OUR GOVERNANCE
MODEL IS EVOLVING
IN LINE WITH OUR
STRATEGY
ORIENTATION FOR
GROWTH – THE
PATH TO FINANCIAL
SUSTAINABILITY
READ MORE
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
READ MORE
READ MORE
READ MORE
2014 ANNUAL REPORT
21
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
4: O
PERATIONAL EXCELLENCE
ABC D
VISION IN ACTION / OPERATIONAL EXCELLENCE
RESTRUCTURE OF OUR
OPERATIONAL MODEL
The restructure of head office and regional
delivery model undertaken in Q1 2014 delivered
a reduction in annual expenses of over $1.2 million.
We have worked hard to improve our internal
processes and achieve efficiencies in our
operations, which has enabled us to reduce
expenses significantly each year over the past
five years. Expenses in 2014 included one-off
expenses in relation to restructuring costs of
$0.5 million, and costs relating to the research
and feasibility phase of the digital project of a
further $0.5 million.
Total expenses from operating activities
Expenses
in millions
$12m
$9m
$6m
$3m
0
2010
2011
2012
2013
2014
The reduction in operational
expenses has allowed us
to focus our resources on
strategic investments, including
developing our digital capability,
for the delivery of our programs
and services to members.
Late in 2014, we recruited a
new head of marketing and
communication to transform
the way we communicate
with our members and to
personalise our marketing,
content, news and insights.
Along with our Members
Portal, we have invested in
our new customer relationship
management (Salesforce)
and content management
(Sitecore) systems, which are
already in operation within
the organisation.
Over the last 12 months, we’ve
made significant progress in
re-engaging the senior leaders
of major institutions.
We are rolling out further
initiatives during 2015 to
drive operational excellence
including: the introduction of
an online staff performance
management system; moving
to an online Board portal for
the management of Board
and Board committees;
implementation of a
state-of-the-art management
information system; and a
review of our technology
infrastructure architecture.
We have refreshed our
business development team,
with proven experience in
the professional education
market, to drive stronger and
deeper alignment with major
employers including senior
business heads, as well as HR,
and learning and development.
With these organisational
changes, we continued
to deliver over 150
events across all regions
in Australia and in
New Zealand to help
shape our industry and
support the careers of
our members.
Finsia continues to bring people
together to share knowledge
and experience, to facilitate
debate on critical issues and
challenges facing the industry
to steer our future direction,
and where younger members
and industry entrants can learn
from those industry leaders
who have achieved outstanding
success in financial services.
Underlying expenses from operating activities
One-off expenses in 2014 – restructure costs, digital research phase
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
22
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
4: O
PERATIONAL EXCELLENCE
ABC D
VISION IN ACTION / OPERATIONAL EXCELLENCE
INVESTMENT IN
DIGITAL CAPABILITY
GLOBAL NAV - MY PROFILE DEFAULT
We’ve been listening
to member feedback,
looking to the future of
professional development
and building a platform
to unite the financial
services industry.
Finsia has launched an online
portal where members can
explore inspiring career
stories, build industry profiles
and create a professional
development plan for the
future. The portal has been
designed for both desktop
and mobile use.
The Finsia Members Portal includes:
Career journey
Understand financial services
careers. Required skills and
member profiles help young
professionals gain a deep and
detailed understanding of the
different segments and positions
in a relatable, personable way.
My plan
Help me plan my professional
development. Plan your
professional development goals
in an innovative and intuitive
timeline view.
Events, member search
Raise profile and gain Finsia
points. Contribute to Finsia
committees, attend events to
earn Finsia Points and raise
profile. Connect with other
members via the member search.
Career-match
Receive career advice based on
your skills and qualifications.
The career-match tool draws
knowledge from Finsia’s
database of career journeys
to provide personalised
recommendations based on the
member’s skills, qualifications,
working styles and more.
Video interviews
Evaluate career options
from others’ personal stories.
Each career journey contains
a first-hand account of a Finsia
member who works in that
position, allowing readers an
insight into what the day in
the life of the member is like.
Finsia
8
37
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
23
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
4: O
PERATIONAL EXCELLENCE
ABC D
VISION IN ACTION / OPERATIONAL EXCELLENCE
OUR GOVERNANCE MODEL IS EVOLVING
IN LINE WITH OUR STRATEGY
The four Industry
Councils established
last year – Institutional
Markets; Funds and Asset
Management; Retail and
Business Banking; and
Financial Advice and
Services – have made a
significant contribution
to the strategic debate
of the future of each
industry sector, informed
and developed the
Finsia policy agenda,
and worked with the
Finsia team to validate
professional standards.
This work will culminate in the
implementation of the new
points-based practitioner model
and accreditation framework, to
be in operation by 1 July 2015.
Industry Council support – along
with the work of the Regional
Councils and high-level industry
engagement – is essential for
the long-term strengthening
of Finsia’s position as the
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
pre-eminent association for
professionals working in the
financial services industry.
The work of the Industry
Councils perfectly compliments
the volunteer, ‘on the ground
focus’ of the Regional Councils
and YFP committees.
Through the valuable work of
our Regional Councils and YFP
committees, we delivered over
150 events during 2014 – across
all regions of Australia, and in
New Zealand.
Our Lunch & Learn and
Leadership Connect forums
continued to allow members
to connect leading content,
prominent industry leaders
and excellent networking
opportunities.
And, of critical importance
to the future of financial
services, our YFP committees
continue to host a wide range
of events in each region that
are designed to develop key
skills, provide career advice,
networking opportunities and
access to industry content and
inspiring senior leaders.
Our governance
structures and practices
are changing to reflect
our changing operational
model and the drive to
recognise the greater
importance of direct
engagement with senior
business heads in the
major employers – both
on the Industry and
Regional Councils,
as well as at Board level.
A number of other key
recommendations from the
governance review – which
involve proposed amendments
to the Finsia constitution – will
be put to the membership
for approval at the AGM in
May 2015.
In August 2014, the Board
commissioned an independent
Adelaide-based governance
expert Kate Costello, of
Governance Matters, to
undertake a governance
review, in light of our changing
business model.
The specific proposals for
the AGM to consider include
changes to the size and
composition of the Board, a
proposal to reduce the size of
the Board, and the adoption
of a rigorous and transparent
diversity matrix and revised
criteria for the selection and
recruitment of directors
– including industry sector,
major employer representation,
professional skills and regional
presence.
Many of the outcomes of
the governance changes are
already evident in the success
of our Industry Councils and
the renewed vigour and sense
of purpose we have seen
across our Regional Councils
and YFP committees, which
have served to strengthen
our governance framework.
The proposed changes
enshrine the principle at the
heart of accountability within
a professional membership
association – the Board will
continue to be directly elected
by the members.
The governance
proposals seek to
‘future-proof’ the
organisation, to ensure
that we continue to
deliver best practice
governance processes,
which will ultimately
drive continued effective
decision-making
outcomes at Board level,
for the benefit of all
members.
2014 ANNUAL REPORT
24
FROM THE
PRESIDENT
OVERVIEW
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN
ACTION
VISION
IN ACTION
COUNCILS AND
COMMITTEES
1: RESPONSIVE CAPABILITY
CORPORATE
GOVERNANCE
2: DEEPER UNDERSTANDING
DIRECTORS
OF THE BOARD
3: GIVING BACK
ANNUAL
FINANCIAL
REPORT
4: O
PERATIONAL EXCELLENCE
ABC D
VISION IN ACTION / OPERATIONAL EXCELLENCE
ORIENTATION FOR GROWTH – THE PATH
TO FINANCIAL SUSTAINABILITY
The Board will continue
its tight focus on
measures taken to drive
operational efficiencies
to ensure the cost
savings we achieved
with the restructure in
2014 flow through to
2015 and beyond.
These two factors have allowed
us to reduce our underlying
loss substantially over the last
five years, while still in the
investment phase – for our
digital capability and rebuilding
our value proposition to new
and existing members.
Moving forward, the Board
is increasingly focused on
revenue growth to achieve the
path to financial sustainability
through new member
acquisition, developing and
delivering new programs,
and unlocking the revenue
Our overall member renewal
rates are at the highest they
have been since the sale of the
education assets, with 96%
of Senior Fellows and 93% of
Fellows renewing last year.
Underlying total comprehensive loss
0
2010
2011
2012
2013
2014
-$1m
Our revenue model for
growing our membership
base and engaging with
the next generation of new
Finsia members is changing
from the traditional annual
membership renewal to a
member subscription model,
with flexible payment options.
We continue to
build and deliver a
compelling value
proposition for
individuals – students,
young professionals
and emerging leaders
– and for employers
and major institutions
within our industry.
We are growing and
diversifying our sources of
revenue, as we look to the
introduction of new programs
and services to members that
drive value and relevance from
Finsia membership.
-$2m
-$3m
-$4m
Losses
in millions
opportunities made possible
by the investment in our digital
capability.
We are forming strategic
partnerships, such as our
preferred partnership
arrangement with Macquarie
Applied Finance Centre, to
deliver the Graduate Certificate
of Applied Finance.
In order to enhance our return
– without adding significant
risk and exposing ourselves to
the potential for capital loss
– the Investment Committee
has invested into a fund that
would also invest in credit.
We are sourcing and delivering
unique and compelling insights,
thought leadership, news
and content.
Given both the diversified
nature of the fund chosen,
combined with the low
dispersion of returns between
managers (who have been
given the highest rating
by asset consultants), the
committee chose to invest in
one fund, the Perpetual Credit
Income Fund.
Investment portfolio
While Finsia is in the current
investment and growth phase,
with the accompanying
operating deficits, the
tolerance for risk in our
investment portfolio is very
low. For this reason the Board
has chosen not to broaden
the portfolio into other asset
classes, such as equities.
As interest rates have fallen
to historically low levels, the
opportunity for an acceptable
return from term deposits
alone has also reduced.
As Finsia returns to a
financially sustainable position
and starts to generate
operating surpluses over the
medium to long term, it is the
intention of the committee to
broaden both the number of
managers and asset classes
in its investment portfolio.
Underlying total comprehensive losses
One-off expenses in 2014 – restructure costs, digital research phase
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
25
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS
COUNCILS AND
COMMITTEES
AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
COUNCILS AND COMMITTEES
REGIONAL COUNCILS IN 2014
New South Wales and
Australian Capital Territory
Victoria and Tasmania
Queensland
South Australia
and Northern Territory
Western Australia
Andrew Baines A Fin
Matthew Baxby F Fin
Charlie Chen SA Fin
Colin Campbell F Fin
Stephanie Daveson F Fin
Bruno Bellon SF Fin
Kerrynne Batten F Fin
John Boyle F Fin
Adrian Arundell F Fin (Chair)
Belinda Cooney F Fin (Chair)
James Canny A Fin
Prof. Michael Drew SF Fin
Jane Dharam SF Fin
Giles Gunesekera SF Fin
Paul Chin F Fin
Joanne Dwyer A Fin
Blake Halligan SA Fin
Jason Clifton F Fin
Prof. Phil Dolan SF Fin
Linda Maniaci F Fin
Jason Fereday SA Fin
Alasdair Jeffrey F Fin
Amanda Heyworth SF Fin
Su-Lin Ong F Fin
Fiona Gomez SA Fin
Phillip Lee SF Fin
Richard Hockney SF Fin (Chair)
Pamela-Jayne Kinder SF Fin
Shaun McRobert SA Fin
Bettina Pidcock F Fin
Tania Hudson SF Fin
Noel Lord SF Fin
Nicholas Karagiannis SA Fin
Ian Pollari F Fin
Christopher Koch F Fin
Russell Mann F Fin
Lan Lam (Affiliate)
Alison Morley SF Fin
Kevin Smout SF Fin
Karolina Popic F Fin
Catherine Macleod F Fin
Kerry McGowan F Fin (Chair)
Helen Lorigan F Fin
Robert Sinclair F Fin
Ian Marshall F Fin
Maxwell Morley SF Fin
John Montague SF Fin
Irshaad Songerwala F Fin
Mark Talbot SF Fin
Fiona McNabb SF Fin (Chair)
Peter Pontikis SF Fin
Timothy Piper F Fin
Lachlan Stretton SA Fin
Stephen Minns A Fin
Kimberley Richards A Fin
John Powell A Fin
Emma Wright SA Fin
Geoffrey Rush SA Fin
Danny Robinson F Fin
Philip Roberts SF Fin
Heather Zampatti SA Fin
Mark Topy SF Fin
Richard Somerville F Fin
Elizabeth Sarti A Fin
Alexandra Tullio A Fin
Phillip Vickery F Fin
Amanda Scott (Affiliate)
Bradley Upton SA Fin
Andrew Weeden SA Fin
Margaret Snowdon SA Fin
Ian Boyce F Fin
Loretta Venten SF Fin
Gordon Wilkie A Fin
Andrew Swaffer F Fin
Tracey Cross F Fin
Stuart Symons A Fin
Leon Grandy F Fin
Annabel West A Fin
David Kidd F Fin
David White SF Fin
Louise Lawton F Fin
Victoria Weekes SF Fin
New Zealand
Phillip Meyer F Fin
David Tripe SF Fin
Patrick Waite SF Fin (Chair)
Rowena Wilkinson F Fin
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
26
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
COUNCILS
COUNCILS AND
COMMITTEES
AND
COMMITTEES
VISION
IN ACTION
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
COUNCILS AND COMMITTEES / CONTINUED
INDUSTRY COUNCILS IN 2014
Financial advice and distribution
Simon Hudson F Fin Megan Aikman F Fin
Paul Khoury SF Fin Hillross
Glenda Berry F Fin
Sandra Bowley SF Fin
Bell Potter
Sandra Bowley Financial Planning
Prof. Christine Brown SF Fin
Monash University
Diana Bugarcic SA Fin St George, Sydney Institute of TAFE
Jeremy Cooper SF Fin
Diego del Rosso SA Fin
Challenger
Bendigo and Adelaide Bank
Steve Helmich SF Fin
AMP
Rob Johnstone
Macquarie
Bruce Lanyon SF Fin
Morgan Stanley
Gary Mitchell SF Fin
Shadforth Financial Group Ltd
Peter Pontikis SF Fin
Westpac
Susan Rallings F Fin
RBS Morgans
Mark Spiers F Fin
BT Financial Group Ltd
Peta Tilse F Fin
Levantine Wealth
Funds and Asset Management
Nicholas Allton SA Fin State Street
Camilla Love F Fin Perennial
Carsten Murawski University of Melbourne
Brendan O’Connor Challenger
Vivek Prabhu F Fin Perpetual
Keri Pratt SF Fin Franklin Templeton
Dr Adam Walk SF Fin Griffith University
Institutional Markets
Catherine Black F Fin Macquarie Funds Group
NAB
Debby Blakey Hesta
Stewart Brentnall F Fin OnePath
Paul Chin F Fin Vanguard
Jacki Chorazy SA Fin Mercer Investments
Sharon Davis F Fin AMP Capital Investors
Sylvia Falzon SF Fin Non-Executive Director
Patrick Farrell SA Fin
BT Financial Group
Queensland Treasury Corporation
Tony Carlton SA Fin Ashley Conn David Cox F Fin Joanne Dawson SA Fin Anastasia Economou SF Fin Jaye Gardiner SF Fin Katrina Glendinning F Fin Pengana Capital
Susanna Gorogh SF Fin Macquarie University
Goldman Sachs
PwC
Westpac
Credit Suisse First Boston
Grant Samuel Group
NAB
Luke Marriott CBA
Chris McLauchlan Matt Nacard Assoc. Prof. Jerry Parwada ANZ
William Barin F Fin Philippa Bartlett A Fin Tony Beck SA Fin Daniel Biondi F Fin David Boromeo Mike Currie F Fin Bank of America Merrill Lynch
Consultant
Elizabeth Smith F Fin Anthony Sweetman SF Fin Cindy Hansen F Fin Graham Heunis Prof. Allan Hodgson Nicholle Lindner F Fin
Gai McGrath NAB
Community First Credit Union
BOQ
Members Equity
Hewlett-Packard
Bendigo and Adelaide Bank
Heritage Bank
Macquarie
Qantas Credit Union
HSBC
University of Queensland
Flexigroup
Westpac
Jason Murray Credit Union Australia
Julian Potter Citi
Paul Presland
Monique Reynolds (Affiliate) Dr Harry Scheule ANZ
Suncorp
UTS
UNSW
Clare Porta F Fin Itay Tuchman David Bannatyne Macquarie
Sophie Polednik Paul Travers SF Fin Retail and Business Banking
Frank Ganis Steven Lambert F Fin Jonathan Armitage Giles Gunesekera SF Fin UniSuper
Grant Thornton Australia
UBS
KPMG
Citi Markets Australia
MTAA
Principal, Global Investors
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
27
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS
COUNCILS AND
COMMITTEES
AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
COUNCILS AND COMMITTEES / CONTINUED
COMMITTEES IN 2014
YFP COMMITTEES IN 2014
Women in Finsia Committee
New South Wales
Richard Janko A Fin
Christopher Koch F Fin
South Australia
and Northern Territory
Anne Kuleshova SA Fin
Mike Calabrese (Affiliate)
Quentin Lachenicht A Fin
Christopher Eddington (Affiliate)
James Paolucci (Student)
Blake Halligan SA Fin
Charity Peran A Fin
Aditya Harsh A Fin
Morgan Popely (Affiliate)
Alyssa Hennessy SA Fin
Ernie Turner A Fin
Tom Reddecliffe SA Fin
Elizabeth Sarti A Fin
Peter Tyson A Fin
JASSA Editorial Board
Jodie Blackledge F Fin
Assoc. Prof. Lakshman Alles SF Fin
Alicia Back (Affiliate)
Belinda Cooney F Fin
Dr Bruce Arnold
Charlie Chen SA Fin (Chair)
Maebehe Garcia F Fin
Dr Jean Canil
Katherine Chen (Affiliate)
Katherine Howard F Fin
Prof. Carole Comerton-Forde F Fin
Sean Cornell (Affiliate)
Linda Maniaci F Fin (Chair)
Prof. Kevin Davis SF Fin
Eloise De Cure-Ryan (Affiliate)
Malini Raj F Fin
Prof. Michael Drew SF Fin (Chair)
Hassan Jayewardene (Student)
Jillian Rezsdovics F Fin
Prof. Steve Easton
Jessye Lin (Affiliate)
Rachel Saffron A Fin
Marion Fahrer F Fin (Editor)
Kyra Miller (Affiliate)
Lachlan Vogt (Affiliate)
Maria Trinci SA Fin
Prof. Kim Hawtrey SF Fin
Anita Mustac (Affiliate)
Queensland
Loretta Venten SF Fin
Dr Alexandra Heath
Rowena O’Neill SA Fin
Anne Voursoukis F Fin
Assoc. Prof. Elaine Hutson
Oliver Ryan SA Fin
Victoria Weekes SF Fin
Prof. Kevin Jameson F Fin
Andrew Sabo Student
Prof. Paul Kofman
Oliver Sieur (Affiliate)
Aaron Minney F Fin
Jasmine Tan A Fin
Prof. Fariboz Moshirian
Biljana Tasevska (Affiliate)
Assoc. Prof. Dr Maurice Peat F Fin
Victoria and Tasmania
Peter Hodgson (Student)
Brett Callanan A Fin
Nishant Kedia F Fin
Prof. Alireza Tourani-Rad F Fin
Lily Jade Chung Kim Yuen (Affiliate)
Alex Cottrell A Fin
Jonathan Hanley (Affiliate)
Man-Hong Hon F Fin
Clair Barrett A Fin
Samantha Bird A Fin
Annabel West A Fin
Jarrod Wilksch (Affiliate)
Elizabeth Evans (Affiliate)
Western Australia
Luke Fraser A Fin
Sebastian Bednarczyk SA Fin
Camille Grassick (Affiliate)
Damien Cribben A Fin
Craig Dingley SA Fin
Jeffrey Gibson A Fin
Hedley Roost (Affiliate)
Lachlan Stretton SA Fin
Richard Tan (Affiliate)
Sean Vincent A Fin
Juanita Vlok A Fin
Michael Hamlin A Fin
Sam O’Connor A Fin
Kimberley Richards A Fin
Daniel Sciberras F Fin
Merrick Studders A Fin
Sean Trainor A Fin
Hilary Troy A Fin
Gordon Wilkie A Fin
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
28
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
CORPORATE GOVERNANCE
Finsia is a founding
member of the ASX
Corporate Governance
Council and Finsia’s Chief
Executive is a member
of the council.
Finsia’s Board has
endorsed the revised
Corporate Governance
Council Principles and
Recommendations.
The Board is focused on
ensuring stakeholders are
informed of our activities and
that the confidence of our
members is preserved.
Principle 1: Lay solid
foundations for management
and oversight
»T
he Board is responsible
for the overall corporate
governance of Finsia,
including its corporate
planning.
»T
he Board has a
management framework,
including a system of internal
control, a business risk
management process and
established ethical standards.
Principle 2: Structure the
Board to add value
»The Finsia constitution
determines the composition
of the Board, with directors
subject to election by a
direct national vote by
members. At least one
director is elected from
each of the regions.
»T
he Chief Executive Officer
and Managing Director is
the only director who is a
member of management.
The Chair and Board
members are independent
directors.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
»As a membership organisation,
we derive strength from the
involvement of the directors
as members committed to
the enhancement of Finsia’s
objectives.
Selection of directors
»The directors in office at the
date of this statement are set
out in the directors’ report on
page 38.
»Biographical details outlining
skills, experience and expertise
relevant to the position of the
director are provided in the
Board profile on pages 32–34.
Other directorships are also
included.
»Finsia is committed to
ensuring gender diversity
in the composition of
its Board of directors in
accordance with Principle
3 of the ASX Corporate
Governance Principles and
Recommendations. Four of
12 elected directors in 2014
are women. The Board has
an induction program in
place for new directors.
Nominations committee
»The Nominations and
Remuneration Committee
comprises the President, Vice
President, Managing Director
and two other directors or as
otherwise determined by the
Board from time to time.
»The composition and
attendance at meetings
of the Nominations and
Remuneration Committee are
shown in the directors’ report
on page 38.
»The constitution provides
that, in addition to the
elected directors, three
additional directors may
be appointed by the Board.
In February 2015, Mr Bruno
Bellon SF Fin was appointed
as the SA/NT Board
representative.
»In its consideration of
candidates for the Board,
the Nominations and
Remuneration Committee
seeks continuity of expertise
and representation of regions
and industry sectors, as
serving directors conclude
their tenure on the Board.
This committee utilises a
Board skills matrix to identify
potential directors with
diverse skills.
»The Board-endorsed
guidelines for attributes
required of directors are
outlined in the Board Charter,
which is available at
Finsia.com/about
»Directors nominations
committee – the Board
has established a new
sub-committee of
the Nominations and
Remuneration Committee
to assist the selection and
election of Directors to the
Board. Details of the terms of
reference and the foundation
members of the committee
are available on our website
at Finsia.com/about
Board performance
»The Board regularly
undertakes board
performance reviews.
Regional representation
»The Board appoints Regional
Councils, which include
representatives from various
business sectors. Members
of regional councils are
Finsia members. All Regional
Councils include a director
of the Board.
Independent professional
advice
»Each director has the
right to seek independent
professional advice at Finsia’s
expense. The President’s
prior approval is required,
which is not to be withheld
unreasonably.
2014 ANNUAL REPORT
29
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
CORPORATE GOVERNANCE / CONTINUED
Principle 3: Act ethically
and responsibly
»The Board acts ethically and
responsibly in its decisionmaking and the Code of
Conduct is available at
Finsia.com/about.
»Directors are required
to disclose transactions
between themselves, their
firms or associated entities
and Finsia, including
payment for services.
»T
he Board takes seriously
its legal obligations and has
regard to the reasonable
expectations of all
stakeholders.
Conflicts of interest
»B
oard policy requires
that if there is, or could
be, a conflict of interest
for directors, then those
directors do not receive
relevant board papers, do
not participate in those
discussions or vote, and also
absent themselves from the
meeting room when those
discussions are held.
»T
he policy provides for a
register of interests to be
maintained and reviewed
at each board meeting.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
Diversity policy
»A
lthough not a listed
entity covered by
the ASX Corporate
Governance Principles
and Recommendations,
Finsia reports its diversity
policy and discloses the
proportion of women in
the whole organisation, at
senior executive and board
levels in accordance with
the recommendations in
Principle 3.
»A
summary of Finsia’s
diversity policy is available at
Finsia.com/about.
Measurable objectives
The Finsia Board has adopted
the following measurable
objectives for achieving
gender diversity across the
organisation’s business.
The objectives were to be met
by December 2014.
Proportion of women in Finsia
as at December 2014
Finsia employees....................64%
Senior executive
positions................................... 33%
On the Board............................ 33%
ObjectiveMeasurement
(December 2014)
Membership
35% of new members
recruited in 2013–14
are female
34%
Professional25%
development and events
33% of speakers at all
Finsia events are female
Publications 40% of all authors in all
publications are women
36%
Career programs 32%
50% increase in
female participation
in Finsia mentoring
programs on 2010 figures
Principle 4: Safeguard integrity
in corporate reporting
» In accordance with the
ASX principle, the Chief
Executive Officer and the
Chief Operating Officer have
provided signed statements
to the Board that the
company’s financial reports
present a true and fair view,
in all material respects, of
the company’s financial
condition and operational
results and are in accordance
with relevant accounting
standards.
»T
o provide rigour and
accountability, declarations
are made by each of the
operational managers that all
material liabilities have been
identified and communicated
to the finance department
as part of the year end
accounting process.
»M
embers of the Audit,
Finance, Risk Management
and Compliance Committee
(Audit Committee) are all
non-executive directors, and
the chair of the committee is
not the chair of the Board.
» Membership of the committee
during 2014 is set out in the
directors’ report on page 38.
Principle 5: Make timely and
balanced disclosure
»F
insia discloses to members
and other key stakeholders
material information that
may affect the organisation
from time to time.
» Our website, Finsia.com,
provides comprehensive and
up-to-date information about
member benefits and services,
professional development
events, careers information,
Finsia news and media
releases, advocacy initiatives
and corporate governance.
2014 ANNUAL REPORT
30
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
CORPORATE GOVERNANCE / CONTINUED
Principle 6: Respect the rights
of security holders
»T
he Board carefully considers
the rights of all members
of Finsia and provides
members with information
about Finsia’s financial
situation, performance and
governance, major initiatives
and future strategy, alliances
and partnerships, and policy
and advocacy by a range of
methods.
»C
ommunications include
the annual report, JASSA
and INFINANCE, the Finsia
website and the annual
general meeting (AGM).
» The external auditor is invited
to attend the AGM and be
available to answer questions
about the conduct of the
audit, and the preparation and
content of the auditor’s report.
Principle 7: Recognise and
manage risk
»T
he Board has established
policies on risk oversight and
management. In addition, the
Chief Executive Officer and
the Chief Operating Officer
have stated to the Board in
writing that:
– the
integrity of financial
statements is founded on a
system of risk management
and internal compliance
and control which
implements the policies
adopted by the Board.
– t he risk management and
internal compliance and
control system is operating
efficiently and effectively in
all material respects.
»F
insia has adequate risk
management and compliance
controls in place.
»T
he Board also, on a regular
basis, receives reports about
the strength of the risk
management framework and
processes.
» IT infrastructure and
services are outsourced to
an external hosting facility.
In the event of a significant
business disruption the
outsourced provider has a
Business Continuity Plan
(BCP) in place for effective
recovery procedures, that are
reviewed on an annual basis.
» The Audit, Finance, Risk
Management and Compliance
Committee reviews the status
of risk and compliance. The
risk register, which is used
to identify, assess, monitor
and manage material risk
throughout the organisation,
is considered by management
on a monthly basis and
reported to each meeting
of the Audit, Finance, Risk
Management and Compliance
Committee and the Board.
»A
fraud control plan and
a whistleblower policy are
also in place.
Principle 8: Remunerate fairly
and responsibly
Remuneration Committee
»T
he Remuneration
Committee is combined with
the Nominations Committee
and comprises the President,
Vice President, Managing
Director and two other
directors, or as determined
by the Board from time to
time.
»W
e have an annual salary and
bonus review process for all
staff. Payments of any salary
and bonus amounts are
market-driven, performancebased and discretionary.
»W
e operate a variable
incentive program, which
has delivered an enhanced
capability to drive individual
employee performance and
to reward high performance
and further support Finsia’s
performance culture.
»T
he constitution prohibits
remuneration of any director
in his or her capacity as a
member of the Board, other
than any salary payment
due to the director as a
Finsia employee.
»D
etails of directors’
remuneration and
superannuation are set
out in Note 18, pages
67-68.
»A
ttendance at meetings
of the committee is shown
in the directors’ report on
page 38.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
31
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
DIRECTORS
OF THE
BOARD
OF
THE
BOARD
ANNUAL
FINANCIAL
REPORT
DIRECTORS OF THE BOARD
Finsia is proud to introduce
the members of the 2015
Board of Directors. We
are confident that, with a
team of such outstanding
talent and experience,
we are well-positioned to
embrace the challenges
and changes that will face
our industry in the coming
year and beyond.
Marianne Birch
David Gall
Russell Thomas
Bruno Bellon
BEcon MEcon GDipAppFin (SecInst)
FCA SF Fin FAICD
BSc BBus (Banking and Finance) MBA (Exec)
SF Fin
BA LLB LLM MCom F Fin
BEcon GDipAppFin (SecInst) MAICD SF Fin
Vice President, appointed Director
January 2010
CEO and Managing Director, appointed
May 2011
Appointed Director in February 2015
President, appointed Director June 2005
Region: New South Wales & Australian
Capital Territory
Ms Birch, 49, is an Executive Director
and the Head of the Australian Financial
Institutions Group at Macquarie Capital
(Australia) Limited.
She was appointed as President of the
Board of Finsia in May 2012. Ms Birch has
more than 23 years’ experience in mergers
and acquisitions and capital raisings,
working at Macquarie Capital for 14 years
and Bankers Trust Australia for nine years.
Prior to that, Ms Birch was an auditor,
specialising in the banking and finance
industries at Pricewaterhouse.
President since May 2012
Director since 2005
Region: Victoria & Tasmania
Mr Gall, 47, is Group Chief Risk Officer,
National Australia Bank.
Previous roles at National Australia Bank
include executive general manager,
working capital services, and executive
general manager corporate banking
and specialised businesses. He worked
at St.George Bank (including five years
with Barclays Bank Australia) between
1989 and 2008. During that time he held
various senior roles including group
executive strategy, group executive retail
business and general manager corporate
and business banking.
Mr Gall joined the Australasian Institute of
Banking & Finance in 1991 and was named
its Young Banker of the Year in 1995.
Region: New South Wales & Australian
Capital Territory
Russell Thomas, 37, was appointed CEO
and Managing Director of the Financial
Services institute of Australasia on
9 May 2011. Russell joined the professional
education department of the Securities
Institute of Australia (SIA) (as Finsia was
then known) in 2003.
From 2006, he was senior manager and
then director of the policy and public
affairs division. During this period,
Russell steered a number of significant
campaigns, including Navigating Reform:
Australia and the Global financial Crisis,
and In the Long Grass: Climate Change,
ESG and the Finance Industry.
Vice President since May 2014
Prior to joining Finsia, Russell had several
roles in legal publishing and professional
education with LexisNexis.
Director since January 2010
Director since February 2011
Member, NSW Regional Council 2000-2007 (SIA)
Member of audit, finance, risk management
and compliance committee 2010 – 2014
Chief Executive Officer & Managing Director since
May 2011
Chairperson, membership advisory committee
2002–2008
Member of nominations & remuneration
committee since October 2014
Interim Chief Executive Officer & Managing
Director February - May 2011
Chair, nominations & remuneration committee
since May 2012
Member, policy advisory committee since 2008
SIA national councillor 2002–2005
Member, membership advisory committee
2000–2002
Region: South Australia & Northern
Territory
Mr Bellon, 44, is a Director, Financial
Markets with the Commonwealth Bank
of Australia.
He previously worked as Portfolio Manager
for the South Australian Government
Financing Authority (SAFA).
Prior to this, he held corporate banking
and treasury roles with ANZ Bank
and SGIC.
He has been a member of Finsia since 2011
and previously the Securities Institute of
Australia (SIA) since 1995. He is a member
of the SA/NT Regional Council and a
former lecturer and course assessor for
SIA in several subjects.
Director since February 2015
Member SA/NT Regional Council since 2011
Formerly director of policy and professional
development
Chairperson, postgraduate academic advisory
committee 2002–2003
Chairperson, NSW education committee
1995–2000
Principal lecturer E102 (applied valuation)
1999–2001
Member national policy committee 2002–2005
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
32
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
DIRECTORS
OF THE
BOARD
OF
THE
BOARD
ANNUAL
FINANCIAL
REPORT
DIRECTORS OF THE BOARD / CONTINUED
Alasdair Jeffrey
Warwick Negus
Malini Raj
Kevin Smout
MBA BBus BA F Fin
B Bus MComm SF Fin
F Fin BAcc MApp Fin Inv
Appointed October 2010
Appointed Director March 2010
Appointed August 2013
BCom, Accounting (Hons,) ICAA, CIMA GAICD
FTA SF Fin
Region: Queensland
Region: New South Wales & Australian
Capital Territory
Region: New South Wales & Australian
Capital Territory
Appointed August 2013
Mr Negus, 53, was appointed as VP
of Finsia in April 2010. He was CEO
of Colonial First State Global Asset
Management 2005 to 2008. Prior to
this position he was CEO of 452 Capital
Pty Ltd, a boutique Australian fund
management company he co-founded
in 2002. Mr Negus worked in various
management roles as a MD of Goldman
Sachs (1993 – 2002), including the
investment banking division, the Asian
asset management business, and global
emerging markets and global equities
located in Hong Kong, Singapore, London
and Sydney. Previously, he was VP and
Portfolio Manager at Bankers Trust
Australia, and International Lending
Manager at CBA.
Ms Raj, 34, is an Executive Manager with
CBA, with over 15 years’ financial services
experience.
Mr Smout, 45, is a Partner with KPMG,
having been with KPMG for 16 years,
with a period of three years as CFO for a
large corporate that provides funding and
related financial and treasury services for
large-scale infrastructure projects.
Mr Jeffrey, 46, is executive director of
the financial communication practice of
Rowland in Brisbane. He has 20 years’
communication experience in Australia
and overseas. Prior to joining Rowland
he managed corporate and investor
communication programs for clients in
Australia, the United Kingdom and the
United States.
Mr Jeffrey was executive vice president
of investor relations at data and
communications network company
Marconi PLC in London from 1997
to 2003.
Director since October 2010
Member, Queensland Regional Council since 2007
Mr Negus is a member of The Salvation
Army’s Sydney advisory board, a member
of the UNSW Council, Chairman of the
UNSW Finance Committee and a Director
of the UNSW Foundation. He is a member
of the Advisory Council at the Australian
School of Business and a member of the
Centre for Social Impact Advisory Board.
He is a member of the Council of the
Cranbrook School and Chairman of the
Cranbrook Foundation.
Director since March 2010
Malini’s leadership potential has been
recognised with several industry awards.
–W
inner – Morgan McKinley Women in
Leadership Award 2014
-A
warded scholarship and completed
Level One Organisational Coaching
accreditation (Institute of Executive
Coaching and Leadership) 2014
–F
inalist – AFR BOSS Search for
Australia’s Top Emerging Leader 2012
–2
012 & 2013 CPA INTHEBLACK Magazine
Top 40 Young Business Leaders
–F
insia Pinnacle Award – Most
Outstanding Young Professional
(Member’s Choice) – 2011
–F
insia Pinnacle Award – Nominated for
Most Outstanding Future Leader – 2011
–W
omen on Boards – Next Generation of
Corporate Female Leaders Program 2012
Vice President April 2010 – May 2014
Chair – Finsia Young Finance Professionals
Committee 2010 – 2013
Member, nominations & remuneration
committee since 2010
Women in Finsia Committee
Member, Policy Advisory Committee since 2008
Chair, Investment Advisory Committee since 2010
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
She has previously held positions at
Citigroup, Wilson HTM and Westpac
across investment banking, corporate
finance, accounting, ECM, strategy, M&A,
HR, retail banking & change management.
NSW/ACT Regional Councilor 2010 – 2013
Finsia Mentor
Member of audit, finance, risk management
and compliance committee since August 2014
Region: Western Australia
Kevin has had over 15 years’ experience
providing audit and risk advisory services to
financial institutions. Kevin leads the Perth
financial services team and has been the
audit engagement partner for major clients.
He is responsible for the delivery of AASB
139 services to KPMG’s Perth based clients.
Kevin has had a wide range of corporate
experience in the treasury environment
including front, middle and back office,
with treasury products experience ranging
from vanilla money market to structured
derivatives. Kevin has extensive experience
in monitoring, compliance and application
of risk management frameworks. He has
also worked in Citibank’s Equity Structured
derivatives Department in London.
Kevin regularly presents at seminars
and training sessions for clients, Finsia,
AICD, CPA, ICAA and to hedging and risk
management forums. Kevin served as a
local chapter member of the FTA and
served for four years as a board member
of the FTA National Association. He has
board advisory roles to Community Vision
and John Curtin Leadership Academy.
Director since August 2013
Chair WA Regional Council 2010 – 2013
Chair of audit, finance, risk management and
compliance committee since November 2014
2014 ANNUAL REPORT
33
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
DIRECTORS
OF THE
BOARD
OF
THE
BOARD
ANNUAL
FINANCIAL
REPORT
DIRECTORS OF THE BOARD / CONTINUED
Mark Spiers
Loretta Venten
Patrick Waite
Victoria Weekes
BA CFP Dip AII CIP F Fin GAICD
BEc GDip (Banking & Finance) SF Fin MAICD
MFTA
QSM JP FCA FCIS SF Fin
BComm LLB FAICD SF Fin
Appointed March 2008
Appointed March 2013
Region: New South Wales & Australian
Capital Territory
Appointed June 2005
Region: New Zealand
Region: Victoria & Tasmania
Region: New South Wales & Australian
Capital Territory
Mr Spiers, 55, is General Manager of
BT Financial Group’s advice business.
In this role, Mark is responsible for bank
financial planning (Westpac Financial
Planning, St.George Financial Planning,
Bank of Melbourne, Bank of South
Australia) and dealer groups (Securitor,
Magnitude, Licensee Select and BT Select).
Ms Venten, 51, is an Executive Director,
Loan Markets & Syndications at
Commonwealth Bank of Australia.
Mr Waite, 68, is Principal of Business
Advisory firm Patrick Waite & Associates.
During his 30-year career Mark has
demonstrated a strong commitment to
improve the professionalism, standards
and reputation of the industry and is
committed to leaving a legacy of enabling
more Australians to access professional
financial advice.
She is a director of MIS Funding No 1
Pty Ltd and a past member of the
management committee of the Asia
Pacific Loan Market Association (APLMA)
Australian Branch (2000–2010).
Appointed March 2013
Mark is actively involved in the
development of the financial planning
profession through board and committee
positions in industry associations,
representing industry for regulatory
reform and using his voice in the media.
He has served as Director and Deputy
Chair for the Financial Planning
Association (FPA) including 12 years
as Chair of the FPA’s Policy and
Government Committee.
She has had various roles at the bank
since 1984 in loan markets/syndicated
lending, debt capital markets, corporate
banking, branch lending and branch
banking.
He was a director of New Zealand’s
Public Trust between 2001 and 2002
before becoming its chief executive
from 2003 to 2007. He was president of
the New Zealand Institute of Chartered
Accountants in 2003 and prior to that
held various banking roles in New Zealand
and overseas with Bank of New Zealand,
National Australia Bank, Trust Bank and
Westpac.
Ms Weekes, 53, is a Professional
Non-Executive Director with more than
25 years’ experience as a senior executive
in the financial services sector.
Victoria is the Independent Chair of
OnePath Funds Management and
OnePath Custodians (ANZ’s public
offer superannuation trustee) and a
non-executive director of ANZ Trustees
and ETRADE.
Victoria has wide-ranging senior executive
experience in financial services, and her
previous roles include being a Managing
Director at Citigroup Australia and
Executive General Manager at Westpac.
Member, Victorian Regional Council since 2006
He is: trustee and chairman of Skylight
Trust, Mary Potter Hospice Forever
Foundation and Diabetes New Zealand;
was governor for Rotary International in
2007–2008; has been a member of the
risk and audit committees of New Zealand
Parliamentary Services and New Zealand
Treasury and is chair of The Maori Trustee
audit and risk committee.
Member, representative AIBF board, 1998–2005
Director since March 2008
Director since March 2013
Member, AIBF finance committee, 2002–2005;
chair, 2004–2005
Member, New Zealand Council since
February 2008
Member of the Finsia NSW Regional Council
Member, AIBF Victorian state committee,
1996–2005; chairperson 1997–1998
Member, nominations
& renumeration committee
Director since 2005
Member of audit, finance, risk management and
compliance committee since 2010
Member, nominations & remuneration
committee 2010 – 2014
Victoria is a non-executive director of the
Sydney Local Health District, a member of
the Advisory Council of Comcover and a
member of the ASIC Markets Disciplinary
Tribunal.
Member of the Women in Finsia Committee
Member of audit, finance, risk management
and compliance committee
Director since March 2013
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
34
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
ANNUAL FINANCIAL REPORT
CONTENTS
36
DIRECTORS’
REPORT
40
INDEPENDENT
AUDITOR’S REPORT
42
AUDITOR’S
INDEPENDENCE
DECLARATION
43
DIRECTORS’
DECLARATION
44
CONSOLIDATED
STATEMENT OF
FINANCIAL POSITION
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
45
CONSOLIDATED
STATEMENT OF
PROFIT AND LOSS
AND OTHER
COMPREHENSIVE
INCOME
46
CONSOLIDATED
STATEMENT OF
CHANGES IN EQUITY
47
CONSOLIDATED
STATEMENT
OF CASH FLOWS
48
NOTES TO
FINANCIAL
STATEMENTS
2014 ANNUAL REPORT
35
OVERVIEW
FROM THE
PRESIDENT
DIRECTORS’ REPORT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
The directors present their report together with the consolidated financial report of the Financial Services Institute
of Australasia (the “Group”), being the Company and its controlled entities for the financial year ended
31 December 2014 and the lead auditor’s report thereon.
DIRECTORS
The names of the Group’s directors in office during the financial year and until the date of this report are:
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
DIRECTOR
APPOINTED
Marianne Birch BEcon, MEcon, GDipAppFin (SecInst), FCA, FAICD, SF Fin
President
29 June 2005
David Gall BSc, BBus (Banking and Finance), MBA (Exec), SF Fin
Vice President
29 January 2010
Bruno Bellon BEcon, GDipAppFin (SecInst), MAICD, SF Fin
13 February 2015
Jane Dharam BEcon (Hons), MBA (Advanced), GDipAppFin (SecInst),
CIMA, GAICD, SF Fin
1 March 2011
Alasdair Jeffrey BBus, MBA, BA, F Fin
26 October 2010
Warwick Negus BBus, MCom, SF Fin
8 March 2010
Malini Raj BAcc, M App Fin & Inv, F Fin
15 August 2013
Michael Skully BSBA, MBA, GradDipEc, FCPA, FAIST, SF Fin
1 October 2008
Kevin Smout BCom, Accounting (Hons), ICAA, CIMA, GAICD, FTA, SF Fin
15 August 2013
Mark Spiers BA, CFP, Dip AII, CIP, GAICD, F Fin
21 March 2013
Russell Thomas BA, LLB, LLM, MCom, F Fin
Chief Executive Officer and Managing Director
10 February 2011
Loretta Venten BEc, GDip (Banking & Finance), MAICD, MFTA, SF Fin
29 June 2005
Patrick Waite QSM, JP, FCA, FCIS, SF Fin
4 March 2008
Victoria Weekes BCom, LLB, FAICD, SF Fin
4 March 2013
RETIRED
2 June 2014
2014 ANNUAL REPORT
36
OVERVIEW
FROM THE
PRESIDENT
DIRECTORS’ REPORT
CONTINUED
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
PRINCIPAL ACTIVITIES
The principal activities of the Group during the course of the financial year were the provision of membership
services, professional development and networking events, information services, mentoring, policy research,
and provision of the education and career development programs.
REVIEW OF FINANCIAL RESULT
The total comprehensive loss before tax for the year was a loss of $2,478,821 (2013: loss of $2,720,342).
The objective of the Group is to be self‑financing and to ensure the maintenance of its high standards
of service and professionalism.
The Group is a company limited by guarantee and no dividends are payable.
REVIEW OF OPERATIONS
Group revenue was generated primarily from member subscription fees of $3,880,176 (2013: $4,250,002) and
Investments generated an income of $1,198,571 (2013: $1,265,766). Income from Membership Services (Professional
Development (PD) and Conference income) of $360,254 (2013: $708,624) reduced by 49% following the decision
to restructure the organisation in early 2014, to reduce the number of face-to-face PD seminars and workshops
and refocus resources on the digital investment with fewer number of high touch, high impact face-to-face events.
The course and conference expenses of $419,313 applied in the generation of Membership Service income reduced
by 53% in the year (2013:$882,898).
Total expenses reduced by 12.3%. The primary expense was staff expenses of $4,034,997 (2013: $4,538,948)
reduced by 11.1% due to the restructure of operations during the year which saw full time equivalent (FTE)
employee numbers fall to 26 (2013: 36 FTE). Contractor and consulting costs of $655,071 were steady (2013:
$654,466), in comparison to the previous year. The overall loss for the year included significant restructure costs,
mainly in redundancies and termination payments included in staff expenses, as well as significant investment
in the digital offering, and a relaunch of the finsia.com website.
The short- and long-term objectives of the Group are to advance our members’ careers, to connect our members
to admired content, resources and professional networks, to strengthen the financial services industry’s future and
to undertake charitable activities within the financial services industry. In the long term it is also the objective of
the Group that its operations will return to a sustainable cash flow positive and profitable position. This will enable
the Group to maintain a high level of reserves, which is a prudent measure as it protects the ongoing interests of
members and provides a sound underpinning for the Group’s future.
The Group measures its performance in relation to a wide range of quantitative and qualitative key performance
indicators (KPIs) including but not limited to net profit/(loss), various revenue, cost and margin KPIs, the number,
retention and acquisition of members, member satisfaction, engagement, and participation rates, the number of
attendees at professional development programs and satisfaction outcomes, the quality of the Group publications
and policy campaign outcomes.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
During the financial year there was no significant change in the state of affairs of the Group.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
37
OVERVIEW
FROM THE
PRESIDENT
DIRECTORS’ REPORT
CONTINUED
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
SIGNIFICANT EVENTS AFTER YEAR END
There has not been any matter or circumstance that has arisen in the interval between the end of the financial year
and the date of this report that has significantly affected, or may significantly affect, the operations of the Group,
the results of those operations, or the state of affairs of the Group in the subsequent financial years.
LIKELY DEVELOPMENTS AND FUTURE RESULTS
Finsia Education, a subsidiary entity, is likely to apply to deregister as a Charitable Institution with the Australian
Charities and Not for Profits Commission (ACNC) and to remove its concessional charitable tax status with the
Australian Taxation Office (ATO).
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS
During the financial year, the Group paid a premium in respect of a contract insuring the directors, company
secretary and executive officers of the Group and of any related body corporate against a liability incurred
as such a director, company secretary or executive officer to the extent permitted by the Corporations Act 2001.
The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
The Group has not otherwise, during or since the financial year, indemnified or agreed to indemnify an officer
or auditor of the Group or of any related body corporate against a liability incurred as such an officer or auditor.
MEETING ATTENDANCES
The meeting attendance of directors during the year is set out below.
DIRECTOR
Marianne Birch
David Gall
Jane Dharam
Alasdair Jeffrey
Warwick Negus
Malini Raj
Michael Skully
Kevin Smout
Mark Spiers
Russell Thomas
Loretta Venten
Patrick Waite
Victoria Weekes
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
BOARD, FINANCIAL
SERVICES INSTITUTE
OF AUSTRALASIA
AUDIT, FINANCE,
RISK MANAGEMENT &
COMPLIANCE COMMITTEE
6 of 7
5 of 7
1 of 2
3 of 4
7 of 7
4 of 7
6 of 7
1 of 2
6 of 7
4 of 4
5 of 7
3 of 3
5 of 7
7 of 7
4 of 4
7 of 7
4 of 4
5 of 7
7 of 7
4 of 4
NOMINATIONS &
REMUNERATION
COMMITTEE
3 of 3
1 of 2
3 of 3
3 of 3
1 of 1
3 of 3
2014 ANNUAL REPORT
38
OVERVIEW
FROM THE
PRESIDENT
DIRECTORS’ REPORT
CONTINUED
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
LIABILITIES OF MEMBERS
The liability of the members of the Company is limited. Every member undertakes to contribute to the assets in
the event of it being wound up whilst they are a member or within one year after they cease to be a member.
The contribution is for payment of the debts and liabilities contracted before the time at which they cease to be a
member, and the costs, charges and expenses of winding up and for an adjustment to the rights of contributories
among themselves. The amount of contribution is limited to a maximum of two dollars per member.
LEAD AUDITOR’S INDEPENDENCE DECLARATION
A copy of the lead auditor’s independence declaration is set out on page 41.
Signed in accordance with the resolution of the directors by:
Marianne Birch SF Fin
President
Russell Thomas F Fin
Chief Executive Officer and Managing Director
Dated: 31 March 2015
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
39
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
INDEPENDENT AUDITOR’S REPORT
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
Deloitte Touche Tohmatsu Ltd
ACN 092 223 240
Grosvenor Place
225 George Street
Sydney NSW 2000
PO Box N250 Grosvenor Place
Sydney NSW 1220 Australia
Tel: +61 (0) 2 9322 7000
Fax:+61 (0) 2 9322 7001
www.deloitte.com.au
We have audited the accompanying financial report of Financial Services Institute of Australasia, which comprises
the statement of financial position as at 31 December 2014, the statement of profit or loss and other comprehensive
income, the statement of cash flows and the statement of changes in equity for the year ended on that date, notes
comprising a summary of significant accounting policies and other explanatory information, and the directors’
declaration of the consolidated entity, comprising the company and the entities it controlled at the year’s end or
from time to time during the financial year as set out on pages 43 to 70.
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error. In Note 2a, the directors also
state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the
consolidated financial statements comply with International Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in
accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical
requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance
whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks
of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control, relevant to the entity’s preparation of the financial report that gives a true
and fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by the
directors, as well as evaluating the overall presentation of the financial report.
Liability limited by a scheme approved under Professional Standards Legislation
Member of Deloitte Touche Tohmatsu Limited
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
40
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
INDEPENDENT AUDITOR’S REPORT
CONTINUED
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Auditor’s Independence Declaration
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of Financial Services Institute of Australasia, would be in the same terms if given to the directors as
at the time of this auditor’s report.
Opinion
In our opinion:
(a)the financial report of Financial Services Institute of Australasia is in accordance with the Corporations Act
2001, including:
(i)giving a true and fair view of the consolidated entity’s financial position as at 31 December 2014 and
of its performance for the year ended on that date; and
(ii)complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)the consolidated financial statements also comply with International Financial Reporting Standards
as disclosed in Note 2a.
DELOITTE TOUCHE TOHMATSU
Gaile Pearce
Partner
Chartered Accountants
Sydney, 31 March 2015
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
41
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
AUDITOR’S INDEPENDENCE DECLARATION
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
Deloitte Touche Tohmatsu Ltd
ACN 092 223 240
Grosvenor Place
225 George Street
Sydney NSW 2000
PO Box N250 Grosvenor Place
Sydney NSW 1220 Australia
Tel: +61 (0) 2 9322 7000
Fax:+61 (0) 2 9322 7001
www.deloitte.com.au
The Board of Directors
Financial Services Institute of Australasia
Level 18, 1 Bligh Street
SYDNEY NSW 2000
31 March 2015
Dear Board Members
Financial Services Institute of Australasia
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration
of independence to the directors of Financial Services Institute of Australasia.
As lead audit partner for the audit of the financial statements of Financial Services Institute of Australasia for the
financial year ended 31 December 2014, I declare that to the best of my knowledge and belief there have been
no contraventions of:
(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
(ii)any applicable code of professional conduct in relation to the audit.
Yours sincerely
DELOITTE TOUCHE TOHMATSU
Gaile Pearce
Partner
Chartered Accountants
Sydney, 31 March 2015
Liability limited by a scheme approved under Professional Standards Legislation
Member of Deloitte Touche Tohmatsu Limited
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
42
OVERVIEW
FROM THE
PRESIDENT
DIRECTORS’ DECLARATION
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
The directors of Financial Services Institute of Australasia (the “Company”) declare that:
(a)in the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts
as and when they become due and payable;
(b)in the directors’ opinion, the attached financial statements and notes are in compliance with International
Financial Reporting Standards, as stated in Note 3(a) to the financial statements; and
(c)in the directors’ opinion, the attached financial statements and notes thereto are in accordance with the
Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the
financial position of the consolidated entity.
Signed in accordance with a resolution of the directors made pursuant to S. 295(5) of the Corporations Act 2001.
On behalf of the directors
Marianne Birch SF Fin
President
Russell Thomas F Fin
Chief Executive Officer and Managing Director
Dated: 31 March 2015
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
43
OVERVIEW
FROM THE
PRESIDENT
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
AS AT 31 DECEMBER 2014
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
20142013
Note
$$
CURRENT ASSETS
Cash and cash equivalents
7
1,864,580
1,183,900
Interest-bearing deposits
9,717,118
13,768,312
Trade and other receivables
8
272,949
700,062
Prepayments 325,024191,604
12,179,67115,843,878
Total Current Assets
NON-CURRENT ASSETS
Other deposits
Plant and equipment
Intangible assets
Financial assets – available for sale
9
10
11
12
601,278
455,603
977,486
16,114,796
612,140
590,149
–
15,315,919
18,149,16316,518,208
Total Non-Current Assets
Total Assets
30,328,83432,362,086
CURRENT LIABILITIES
Trade and other payables
13
Members’ subscriptions received in advance
Employee provisions
14
Other liabilities
987,618
1,922,990
166,768
90,864
251,059
2,123,782
239,705
70,975
3,168,2402,685,521
Total Current Liabilities
NON-CURRENT LIABILITIES
Employee provisions
14
Provision for restoration of leased premises
15
Other liabilities
63,158
35,000
311,757
100,307
35,000
311,758
409,915447,065
Total Non-Current Liabilities
Total Liabilities
3,578,1553,132,586
Net Assets
26,750,67929,229,500
MEMBERS’ FUNDS
Retained earnings
Foreign currency translation reserve
Other reserves
26,455,325
(20,785)
316,139
29,047,293
(10,183)
192,390
26,750,67929,229,500
Total members’ funds
The notes on pages 48 to 70 are an integral part of these consolidated financial statements.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
44
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
CONSOLIDATED STATEMENT
OF PROFIT AND LOSS AND
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2014
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
20142013
Note
REVENUE
Member fees
Membership services
Other services
$$
3,880,176
360,254
249,291
4,250,002
708,624
310,757
Total revenue from operating activities
4,489,7215,269,383
EXPENSES
Staff expenses
Consultants and contractor expenses
Premises expenses
Course and conference expenses
Promotion and advertising expenses
Digital media content
Policy and publication expenses
IT and telecommunication expenses
Travel and accommodation expenses
Printing, postage and stationery
Other expenses
Depreciation and amortisation
Loss on disposal of fixed assets
4,034,997
655,071
935,295
419,313
335,833
235,834
268,683
386,933
256,111
126,495
472,398
153,297
–
4,538,948
654,466
847,531
882,898
266,051
366,667
551,344
390,762
229,206
84,571
491,631
136,035
245
Total expenses from operating activities
8,280,2609,440,355
(3,790,539)(4,170,972)
Results from operating activities
FINANCE INCOME
Interest income
Trust distribution
523,443
675,128
1,142,237
123,529
1,198,5711,265,766
Net finance income
Loss before tax
Income tax
6
(2,591,968)
–
(2,905,206)
–
(2,591,968)(2,905,206)
Loss for the year
ITEMS THAT MAY BE RECLASSIFIED TO THE PROFIT AND LOSS
Foreign currency translation differences
Unrealised gains on investments
(10,602)
123,749
(7,526)
192,390
Other comprehensive (loss)/income, net of tax
113,147184,864
(2,478,821)(2,720,342)
Total comprehensive loss for the year
The notes on pages 48 to 70 are an integral part of these consolidated financial statements.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
45
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2014
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
FOREIGN
CURRENCYUNREALISED
RETAINED TRANSLATION
GAINS ON
EARNINGS
RESERVEINVESTMENTS
TOTAL
EQUITY
Note$$$$
Opening balance 1 January 2013
Loss for the year
Other comprehensive income for
the year
31,952,499
(2,905,206)
Total comprehensive loss for the year
(2,905,206)
Closing balance 31 December 2013
29,047,293
(10,183)
192,39029,229,500
Opening balance 1 January 2014
Loss for the year
Total other comprehensive income for
the year
29,047,293 (2,591,968)
(10,183)
–
192,390 –
(10,602)
123,749
(2,591,968)
(10,602)
123,749
26,455,325 (20,785)
316,139 Total comprehensive loss for the year
Closing balance 31 December 2014
–
–
(2,657)
–
–
–
(7,526)
192,390
(7,526)
192,390
31,949,842
(2,905,206)
184,864
(2,720,342)
29,229,500
(2,591,968)
113,147
(2,478,821)
26,750,679
The notes on pages 48 to 70 are an integral part of these consolidated financial statements.
The entity has no share capital, hence the Consolidated Statement of Changes in Equity only contains retained
earnings and other comprehensive income.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
46
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
CONSOLIDATED STATEMENT
OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2014
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
Note
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts in the course of operations
Cash payments in the course of operations
Interest received
Net cash flows used in operating activities
20142013
$$
5,127,224
(8,062,994)
1,236,361
4,764,546
(8,782,283)
1,512,037
21(b)(1,699,409)(2,505,700)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for plant and equipment and intangible assets
Proceeds from/(payments for) interest-bearing deposits
(996,236)
3,386,926
(549,186)
(22,619,487)
Net cash flows from/(used in) investing activities
2,390,690(23,168,673)
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the financial year
Effect of exchange rate fluctuations
691,281
1,183,900
(10,602)
(25,674,373)
26,865,799
(7,526)
Cash and cash equivalents at end of the financial year21(a)
1,864,5801,183,900
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
47
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
1. REPORTING ENTITY
The consolidated financial statements for the year ended 31 December 2014 comprise the accounts of Financial
Services Institute of Australasia, Finsia Education and Finsia NZ Limited (together referred to as the “Group”).
Financial Services Institute of Australasia is a not-for-profit company limited by guarantee, incorporated and
domiciled in Australia with its registered office at Level 18, 1 Bligh Street, Sydney NSW 2000.
2. PRINCIPAL ACTIVITIES
The principal activities of the Group during the course of the financial year were the provision of membership
services, professional development and networking events, information services, mentoring, policy research, and
provision of education and career development programs.
3. BASIS OF PREPARATION
(A) STATEMENT OF COMPLIANCE
These financial statements are general purpose financial statements which have been prepared in accordance
with the Corporations Act 2001, Accounting Standards and Interpretations, and comply with other requirements
of the law.
The financial statements comprise the consolidated financial statements of the Group. For the purposes of
preparing the consolidated financial statements, the Company is a not‑for‑profit entity.
Accounting Standards include Australian Accounting Standards. Compliance with Australian Accounting Standards
ensures that the financial statements and notes of the Company and the Group comply with International Financial
Reporting Standards (“IFRS”).
The consolidated financial statements were authorised for issue by the Board of Directors on 31 March 2015.
(B) BASIS OF MEASUREMENT
The consolidated financial statements have been prepared on the basis of historical cost, except for certain
properties and financial instruments that are measured at fair value. Historical cost is generally based on the fair
values of the consideration given in exchange for goods and services. All amounts are presented in Australian
dollars, unless otherwise noted.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date, regardless of whether that price is directly observable or
estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Group takes
into account the characteristics of the asset or liability if market participants would take those characteristics into
account when pricing the asset or liability at the measurement date.
In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on
the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to
the fair value measurement in its entirety, which are described as follows:
•Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date;
•Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or
liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
48
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
(C) USE OF ESTIMATES AND JUDGEMENTS
The preparation of financial statements requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised
and in any future periods affected.
(D) FUNCTIONAL AND PRESENTATION CURRENCY
These consolidated financial statements are presented in Australian dollars, which is the Group’s functional
currency.
Comparative information is reclassified where appropriate to enhance comparability.
(E) GOING CONCERN
The consolidated financial statements have been prepared on a going concern basis, which contemplates
continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary
course of business for a period of at least 12 months from the date these consolidated financial statements
are approved.
The directors note the following conditions which they have considered in assessing the appropriateness of the
going concern assumption:
•The Group reported a loss before income tax of $2,591,968 for the year ended 31 December 2014
(2013: $2,920,206), generated net cash outflows from operations of $1,699,409 (2013: $2,520,700), and had net
current assets of $9,011,431 (2013: $13,158,357) and net assets of $26,750,679 (2013: $29,229,500) at year end.
•Financial Services Institute of Australasia (the Company) incurred a loss before income tax for the year ended
31 December 2014 of $2,260,061 (2013: $2,029,164), had a deficiency in current liabilities over current assets
at 31 December 2014 of $15,431,353 (2013: $12,335,215) and a deficiency in net assets of $13,412,754
(2013: $11,074,504).
The continuation of the Company as a going concern is dependent on Finsia Education, a controlled entity of the
Financial Services Institute of Australasia, providing continued financial support to the Company.
Finsia Education has issued a letter of support to the Company, Financial Services Institute of Australasia,
committing to provide financial support to enable it to continue to operate and meet its obligations as and when
they fall due. This letter of support will remain in place until the later of a minimum of 12 months from the date
of the letter, or the date of signing the consolidated financial statements for the year ended 31 December 2014.
As a result, the financial statements have been prepared on a going concern basis.
4. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these
consolidated financial statements.
(A) BASIS OF CONSOLIDATION
Subsidiaries are entities controlled by the Company. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
49
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
The accounting policies of subsidiaries have been changed when necessary to align them with the policies adopted
by the Group.
The consolidated financial statements comprise the aggregated accounts of Financial Services Institute of
Australasia and its subsidiaries, Finsia Education and Finsia NZ Limited. Intra‑group balances and transactions,
and any unrealised income and expenses arising from intra‑group transactions, are eliminated in preparing the
consolidated financial statements.
(B) FOREIGN CURRENCY
(I) FOREIGN CURRENCY TRANSACTIONS AND BALANCES
Transactions in foreign currencies are translated to the functional currencies at exchange rates at the dates of
the transactions. Monetary items denominated in foreign currencies at the reporting date are retranslated to the
functional currency at the exchange rate at that date.
Non‑monetary items denominated in foreign currencies that are measured at fair value are retranslated to the
functional currency at the exchange rate at the date that the fair value was determined. Foreign currency
differences arising on retranslation are recognised in profit or loss. Non‑monetary items that are measured in
terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.
(II) FOREIGN OPERATIONS
The assets and liabilities of foreign operations are translated to Australian dollars at exchange rates at the reporting
date. The income and expenses of foreign operations are translated to Australian dollars at exchange rates at the
dates of the transactions.
Foreign currency differences are recognised in other comprehensive income and presented in the foreign currency
translation reserve in equity.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned
nor likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are
considered to form part of a net investment in a foreign operation and are recognised in other comprehensive
income, and are presented within equity in the foreign currency translation reserve.
(C) REVENUE RECOGNITION
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the
revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is
recognised:
(I) MEMBERSHIP FEES
Annual membership subscriptions are recognised as revenue pro rata over the period of the membership. The date
of payment of the initial annual membership subscriptions runs from the date of joining for 12 months and is not
refundable. Subscriptions relating to periods beyond the current financial year are shown in the statement of
financial position as members’ subscriptions in advance.
(II) MEMBERSHIP SERVICES AND OTHER SERVICES
Revenue from rendering of a service is recognised upon delivery of the service to the members.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
50
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
(D) FINANCE INCOME
Finance income comprises interest income on funds invested with financial institutions that are recognised in
profit or loss. Interest income is recognised as it accrues in profit or loss, using the effective interest method.
(E) LEASE PAYMENTS
Operating lease payments are recognised in profit or loss on a straight‑line basis over the term of the lease.
Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.
(F) EMPLOYEE BENEFITS
(I) WAGES, SALARIES, ANNUAL LEAVE
Liabilities for wages and salaries and annual leave expected to be settled within 12 months of the reporting date
are recognised in other payables in respect of employees’ services up to the reporting date. They are measured
at the amounts expected to be paid when the liabilities are settled.
(II) LONG SERVICE LEAVE
The liability for long service leave is recognised in the provision for employee benefits and is measured as the
present value of expected future payments to be made in respect of services provided by employees up to the
reporting date using the projected unit credit method.
Consideration is given to expected future wage and salary levels, experience of employee departures, and periods
of service. Expected future payments are discounted using market yields at the reporting date on national
government bonds with terms to maturity and currencies that match, as closely as possible, the estimated future
cash outflows.
(III) SHORT-TERM EMPLOYEE BENEFITS
Short‑term employee benefit obligations are recognised in the provision for employee benefits and measured as
the present value of expected future payments and are expensed as the related service is provided. A liability
is recognised for the amount expected to be paid under short‑term cash bonus if there is a present legal or
constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation
can be estimated reliably.
(IV) DEFINED CONTRIBUTION PLANS
A defined contribution plan is a post‑employment benefit plan under which an entity pays fixed contributions
into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for
contributions to defined contribution pension plans are recognised as an employee benefit expense in profit
or loss in the periods during which services are rendered by employees. Prepaid contributions are recognised as
an asset to the extent that a cash refund or a reduction in future payments is available. Contributions to a defined
contribution plan that are due more than 12 months after the end of the period in which the employees render the
service are discounted to their present value.
(G) TAXES
(I) INCOME TAXES
The Group applies the principle of mutuality to its revenue and expenses in assessing its income tax liability. Under
this principle, income derived from members of the Group represents mutual income and is not subject to income
tax. Accordingly, expenses in association with mutual activities are not deductible for taxation purposes. All other
receipts and payments are classified in accordance with taxation legislation.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
51
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
Deferred income tax is provided on all temporary differences at the statement of financial position date between
the tax base of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income
tax amounts are recognised for all taxable and/or deductible temporary differences, carry‑forward of unused tax
assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry‑forward of unused tax assets and unused tax losses can be
utilised.
The carrying amount of deferred income tax assets is reviewed at each statement of financial position date and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part
of the deferred income tax asset to be utilised.
(II) GOODS AND SERVICES TAX (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where
the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is
recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from,
or payable to, the ATO is included as a current asset or liability in the balance sheet.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising
from investing and financing activities which are recoverable from, or payable to, the ATO are classified as
operating cash flows.
(H) FINANCIAL INSTRUMENTS
(I) NON‑DERIVATIVE FINANCIAL ASSETS
The Group initially recognises loans and receivables and deposits on the date that they are originated. All other
financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade
date at which the Group becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire,
or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which
substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred
financial assets that is created or retained by the Group is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when,
and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.
The Group has the following non‑derivative financial assets:
Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active
market.
Loans and receivables are recognised at amortised cost using the effective interest method, less any impairment
losses. Loans and receivables comprise cash and cash equivalents, interest‑bearing deposits and, trade and other
receivables.
An allowance for doubtful debts is made when there is objective evidence that the Group will not be able to collect
the debts. Bad debts are written off when identified.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
52
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
Cash and cash equivalents
Cash and cash equivalents comprise cash balances held by financial institutions which are regulated. Cash and
cash equivalents in the Consolidated Statement of Financial Position comprise of cash at banks and on hand and
short-term deposits with maturity of three months or less that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of change in value.
Interest-bearing deposits
Interest-bearing deposits comprise fixed term deposits with original maturities of 12 months or less that are not
otherwise classified as cash or cash equivalents. Interest-bearing deposits are held by financial institutions which
are regulated.
Available for sale financial assets (AFS financial assets)
AFS financial assets are non‑derivatives that are either designated as AFS or are not classified as (a) loans and
receivables, (b) held‑to‑maturity investments or (c) financial assets at fair value through profit and loss.
AFS investment funds held by the Company are classified as AFS and are stated at fair value at the end of each
reporting period. Fair value is determined in the manner described in Note 3(b). Changes in the carrying amount
of AFS investment funds are recognised in other comprehensive income and accumulated under the heading
of unrealised gains on investments. When the investment is disposed of or is determined to be impaired, the
cumulative gain or loss previously accumulated in the unrealised gains on investments is reclassified to profit
or loss.
Distributions on AFS investment funds are recognised in profit or loss when the Company’s right to receive the
distributions is established.
(II) NON‑DERIVATIVE FINANCIAL LIABILITIES
The Group initially recognises debt securities issued and subordinated liabilities on the date that they are
originated. All other financial liabilities (including liabilities designated at fair value through profit or loss) are
recognised initially on the trade date, which is the date that the Group becomes a party to the contractual
provisions of the instrument.
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when,
and only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.
The Group classified non‑derivative financial liabilities into the other financial liabilities category. Such financial
liabilities are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective
interest rate method.
Other financial liabilities comprise trade and other payables.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
53
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
(I) PLANT AND EQUIPMENT
ASSETS
Plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses.
Depreciation is recognised in profit or loss on a straight‑line basis over the estimated useful life as follows:
• Plant and equipment:
• Leasehold fixtures and fittings:
3 years
1‑7 years.
The assets’ residual values and useful life are reviewed at the end of each financial year end and adjusted if
appropriate.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of plant and equipment and are recognised net within expenses
from operating activities.
(J) INTANGIBLE ASSETS
Intangible assets are measured at cost less accumulated depreciation and accumulated impairment losses.
Amortisation is recognised in profit or loss on a straight‑line basis over the asset’s estimated useful life of three to
five years to the Company commencing from the time the asset is ready for use. The estimated useful live and
amortisation method is reviewed at the end of each annual reporting period, with any changes being accounted for
on a prospective basis.
The Group carries out an impairment review of its intangible assets when a change in circumstances or situation
indicates that those assets may have suffered an impairment loss and impairment is measured by comparing
the carrying value of the asset with the “recoverable amount” or “value in use”. Value in use is calculated by
discounting the expected future cash flows. When certain events or changes in operating conditions occur, an
impairment review is performed in order to ensure that the carrying value of an intangible asset is not lower than
its recoverable amount.
(K) IMPAIRMENT
(I) NON‑DERIVATIVE FINANCIAL ASSETS
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine
whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates
that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect
on the estimated future cash flows of that asset that can be estimated reliably.
Objective evidence that financial assets are impaired can include default or delinquency by a debtor, restructuring
of an amount due to the Group on terms that the Group would not consider otherwise, and indications that a
debtor will enter bankruptcy. In addition, for an investment in an equity security, a significant or prolonged decline
in its fair value below its cost is objective evidence of impairment.
The Group considers evidence of impairment for receivables at a specific asset level.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s
original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against
loans and receivables. Interest on the impaired asset continues to be recognised.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
54
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
When a subsequent event (e.g. repayment by a debtor) causes the amount of impairment loss to decrease,
the decrease in impairment loss is reversed through profit or loss.
(II) NON‑FINANCIAL ASSETS
The carrying amounts of the Group’s non‑financial assets are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is
estimated. An impairment loss is recognised if the carrying amount of an asset or its related cash‑generating unit
(CGU) exceeds its estimated recoverable amount. The Group is considered one CGU.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre‑tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually are grouped
together into the smallest group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets.
Impairment losses are recognised in profit or loss. Impairment losses recognised in prior periods are assessed at
each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that
would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(L) PROVISIONS
Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event,
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are determined by discounting the expected future cash flows at a pre‑tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The unwinding of a discount
is recognised as a finance cost.
(M) ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS
IMPACT OF THE APPLICATION OF AASB 2013‑3/AASB 136
These narrow‑scope amendments address disclosure of information about the recoverable amount of impaired
assets if that amount is based on fair value less costs of disposal.
Amendments to AASB 136 – Recoverable Amount Disclosures for Non‑Financial Assets in relation to the disclosure
requirements in AASB 136 include the requirement to disclose additional information about the fair value
measurement when the recoverable amount of impaired assets is based on fair value less costs of disposal.
In addition, a further requirement has been included to disclose the discount rates that have been used in the
current and previous measurements if the recoverable amount of impaired assets based on fair value less costs
of disposal was measured using a present value technique. The intention of this amendment is to harmonise the
disclosure requirements for fair value less costs of disposal and value in use when present value techniques are
used to measure the recoverable amount of impaired assets.
The application of amendments to AASB 136 does not result in any impact on amounts recognised in the
consolidated financial statements. The requirement to disclose additional information and discount rates about fair
value measurement when the recoverable amount of impaired assets is based on fair value less costs of disposal
have been assessed by the directors and are suggested to be satisfied with existing disclosure Note 4(k).
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
55
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
IMPACT OF THE APPLICATION OF AASB 2013‑8/AASB 10, 12, 1049 (FED)
In regards to the application of AASB 2013‑8, only amendments to AASB 12 – Appendix E Australian
Implementation Guidance for Not‑for‑Profit Entities has any impact on the consolidated financial statements.
The amendment to AASB 12 adds Appendix E Australian Implementation Guidance for Not‑for‑Profit Entities as an
integral part of that standard. The appendix explains and illustrates the definition of “structured entity” from the
perspective of not‑for‑profit entities in the private and public sectors, since the for‑profit perspective reflected in
the definition does not readily translate to a not‑for‑profit perspective.
The directors of the responsible entity reviewed and assessed the impact of this amendment in accordance with
the requirement of AASB 136. The directors concluded that the application of the amendments has no material
impact on the amounts or disclosures recognised in the consolidated financial statements.
(N) STANDARDS NOT YET ADOPTED
At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in
issue but not yet effective. The potential impact of the new or revised Standards and Interpretations has not yet
been determined.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
STANDARD/INTERPRETATION
EFFECTIVE
FOR ANNUAL
REPORTING
PERIODS
BEGINNING ON
OR AFTER
EXPECTED TO BE
INITIALLY APPLIED
IN THE FINANCIAL
YEAR ENDING
AASB 9 “Financial Instruments”, and the relevant amending standards
01‑January‑2018
31‑December‑2018
AASB 2014-1 “Amendments to Australian Accounting Standards”
– Part A: “Annual Improvements 2010-2012 and 2011-2013 Cycles”
–Part B: “Defined Benefit Plans: Employee Contributions
(Amendments to AASB 119)”
– Part C: “Materiality”
01‑July‑2014
31‑December‑2015
AASB 2014-3 “Amendments to Australian Accounting Standards –
Accounting for Acquisitions of Interests in Joint Operations”
01‑January‑2016
31‑December‑2016
AASB 2014‑4 “Amendments to Australian Accounting Standards –
Clarification of Acceptable Methods of Depreciation and
Amortisation”
01‑January‑2016
31‑December‑2016
AASB 15 “Revenue from Contracts with Customers” and AASB 2014‑5
“Amendments to Australian Accounting Standards arising from
AASB 15”
01‑January‑2017
31‑December‑2017
AASB 2014‑9 “Amendments to Australian Accounting Standards –
Equity Method in Separate Financial Statements”
01‑January‑2016
31‑December‑2016
AASB 2014‑10 “Amendments to Australian Accounting
Standards – Sale or Contribution of Assets between an Investor and
its Associate or Joint Venture”
01‑January‑2016
31‑December‑2016
2014 ANNUAL REPORT
56
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
NOTES TO FINANCIAL STATEMENTS
CONTINUED
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
EFFECTIVE
FOR ANNUAL
REPORTING
PERIODS
BEGINNING ON
OR AFTER
EXPECTED TO BE
INITIALLY APPLIED
IN THE FINANCIAL
YEAR ENDING
AASB 2015‑1 ‘Amendments to Australian Accounting Standards –
Annual Improvements to Australian Accounting Standards 2012‑2014
Cycle’
01‑January‑2016
31‑December‑2016
Disclosure Initiative (Amendments to IAS 1)
01‑January‑2016
31‑December‑2016
Investment Entities: Applying the Consolidation Exception
(Amendments to IFRS 10, IFRS 12 and IAS 28)
01‑January‑2016
31‑December‑2016
STANDARD/INTERPRETATION
5. LIABILITIES OF MEMBERS
The liability of the members of the Group is limited. Every member undertakes to contribute to the assets in the
event of it being wound up whilst they are a member or within one year after they cease to be a member. The
contribution is for payment of the debts and liabilities contracted before the time at which they cease to be a
member, and the costs, charges and expenses of winding up and for an adjustment to the rights of contributories
among themselves. The amount of contribution is limited to a maximum of two dollars per member.
6. INCOME TAX
The Group adopts the liability method of tax effect accounting. The Group had no liability for tax at 31 December
2014 (2013: Nil).
In assessing its potential income tax liability, the Group applies the principle of mutuality to its revenue and
expenses. Revenue in the form of receipts from members represents mutual receipts and is not subject to income
tax. Expenses associated with mutual activities are not deductible by the Group for income tax purposes. All other
receipts and payments of the Group are classified for income tax purposes in accordance with income tax
legislation.
The deferred tax assets relating to timing differences and any deferred tax assets relating to tax losses are not
carried forward unless it is probable there will be future taxable profit, against which the unused tax losses can
be utilised. Potential deferred tax assets not brought to account at 31 December 2014 amounted to $433,039
(2013: $400,446).
The potential deferred tax assets will only be obtained if taxable income is derived in future periods, relevant
taxation laws remain unchanged and the conditions for deductibility imposed by law continue to be met.
Finsia Education, a subsidiary entity, is a charitable institution and is income tax exempt under Subdivision 50‑B
of the Income Tax Assessment Act 1997. As a result tax effect accounting is not required for Finsia Education.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
57
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
20142013
(a) Income tax benefit
Prima facie income tax benefit calculated at 30% on the loss
Increase in income tax expense due to non-assessable items
$$
(777,590)
742,895
(871,562)
846,274
(34,695)(25,288)
Income tax benefit attributable to loss is made up of:
Current income tax benefit
Decrease/(increase) in deferred tax asset
Increase in deferred tax liability
Current year tax benefit not recognised
(34,695)
–
–
34,695
(25,288)
–
–
25,288
Income tax expense/(benefit)
–
–
(b) Tax assets and liabilities
Current
Deferred tax assets
Deferred tax liabilities
––
–
–
–
–
Net deferred tax liabilities
–
–
7. CASH AND CASH EQUIVALENTS
20142013
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
$$
Cash on hand
Cash at bank
Term deposits with less than 3 months maturities
500
514,080
1,350,000
454
333,446
850,000
Total
1,864,5801,183,900
2014 ANNUAL REPORT
58
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
8. TRADE AND OTHER RECEIVABLES
20142013
Trade receivables
Less allowance for doubtful debts
$$
8,556
–
37,282
–
8,55637,282
Other receivables
7,804
368,401
Accrued income
256,589
294,379
272,949700,062
Total trade and other receivables
Trade receivables are non–interest-bearing and are generally on seven-day terms. An allowance for doubtful debts
is made when there is objective evidence that a trade receivable is impaired.
The ageing analysis of trade debtors at reporting date was:
Neither past due nor impaired
Past due but not impaired
0 – 30 days
31 – 120 days
More than 120 days
256,409
694,599
7,915
3,555
5,070
–
5,463
–
272,949700,062
Total
9. OTHER DEPOSITS
The balance shown in other deposits comprise monies placed in term deposit with National Australia Bank as
security for bank guarantees issued by the bank on behalf of the Group. The two deposits are for $127,945 and for
$473,333 and comprise $601,278 in total.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
59
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
10. PLANT AND EQUIPMENT
LEASEHOLD
OFFICEFURNITURE
EQUIPMENT
AND FITTINGS
$
TOTAL
$$
COST
Balance at 1 January 2013
Additions
Disposals
Effect of movement on exchange rates
846,676
245,405
1,092,081
105,688 444,438550,126
(245)
–(245)
4,555
–
4,555
Balance at 31 December 2013
956,674
Balance at 1 January 2014
Additions
Disposals
Effect of movement on exchange rates
956,674
689,843
1,646,517
6,737
11,95818,695
– ––
1,843
–
1,843
Balance at 31 December 2014
965,254
689,8431,646,517
701,8011,667,055
ACCUMULATED DEPRECIATION
Balance at 1 January 2013
Depreciation for the year
Disposals
Effect of movements in exchange rates
691,109
223,729
914,838
104,412
31,623
136,035
– ––
5,495
–
5,495
Balance at 31 December 2013
801,016
Balance at 1 January 2014
Depreciation for the year
Disposals
Effect of movements in exchange rates
801,016
255,352
1,056,368
90,464
62,844
153,308
– ––
1,776
–
1,776
Balance at 31 December 2014
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
DIRECTORS
OF THE BOARD
893,256
255,3521,056,368
318,1961,211,452
CARRYING AMOUNT
As at 31 December 2013
155,658
434,491
590,149
As at 31 December 2014
71,998
383,605
455,603
2014 ANNUAL REPORT
60
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
11. INTANGIBLE ASSETS
20142013
$$
DIGITAL PLATFORM, CRM, CMS DEVELOPMENT COSTS
Cost977,486
Accumulated amortisation expense
–
Accumulated impairment loss
–
–
–
–
977,486–
Net carrying value
RECONCILIATION OF INTANGIBLE ASSETS
Balance at 1 January
–
Additions977,486
Amortisation expense
–
Impairment loss
–
–
–
–
–
Closing carrying amount at 31 December
977,486–
These costs relate to the design, build, testing and implementation of a Customer Relationship Management
system (CRM), a Content Management System (CMS), and a digital platform which will become operational during
the course of 2015.
12. OTHER FINANCIAL ASSETS
The Perpetual Credit Income Fund (the Fund) invests in a diversified range of income-generating assets and aims
to provide the Group with regular income, consistent above benchmark returns, and with low volatility. The Fund’s
approach to delivering returns and managing risk is through an active and risk-aware investment process which
invests in a diversified core portfolio of liquid investment grade securities. The Fund can also invest in other fixed
income securities such as mortgages, infrastructure debt and private debt. The Fund aims to outperform the
UBS Bank Bill Index by 2% (before fees) over rolling three-year periods. The Group holds units in the Fund which
change in price based on the unpaid distribution income and movement in asset value. The multiplication of the
unit price by the number of units held is deemed to be the fair value of the Fund at the reporting date. Unrealised
movement in the Fund’s unit price is recognised by the Group in Other Comprehensive Income, whilst distributions
are reinvested back into the Fund quarterly and are taken as income by the Group at that time.
20142013
PERPETUAL CREDIT INCOME FUND
Unit purchased initial investment
Unrealised gains on investment
Trust distribution (accumulative)
$$
15,000,000
316,139
798,657
15,000,000
192,390
123,529
Perpetual Credit Income Fund
16,114,79615,315,919
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
61
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
13. TRADE AND OTHER PAYABLES
20142103
Trade payables
Deloitte Digital costs
Other payables
$$
572,684
414,934
–
237,617
–
13,442
987,618251,059
Total
14. EMPLOYEE BENEFITS
20142013
CURRENT
Annual leave
Employee entitlements
Long service leave
$$
68,892
–
97,875
110,890
40,562
88,253
166,767239,705
Total
NON-CURRENT
Long service leave
63,158
100,307
229,925340,012
Number of employees at 31 December (FTE)
26
36
15. PROVISION FOR RESTORATION OF LEASED PREMISES
In accordance with the provisions of its lease agreements, the Group must restore leased premises to their original
condition at the termination of the leases. The greatest uncertainty in estimating the provision is the costs that will
ultimately be incurred; however a reliable estimate has been made based on the size and fit‑out of the premises.
20142013
Provision for restoration of lease premises
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
$$
35,00035,000
2014 ANNUAL REPORT
62
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
16. RISK MANAGEMENT OBJECTIVES
OVERVIEW
The Group has exposure to the following risks from its use of financial instruments:
• market risk
• credit risk
• liquidity risk.
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives,
policies and processes for measuring and managing risk, and the Group’s management of capital. Further
quantitative disclosures are included throughout these consolidated financial statements.
RISK MANAGEMENT FRAMEWORK
The Board of Directors have overall responsibility for the establishment and oversight of the Group’s risk
management framework. The Board reviews and agrees policies for managing each of the risks. Primary
responsibility for identification and control of financial risks rests with the Audit, Finance, Risk Management
& Compliance Committee under the authority of the Board.
Risk management policies and systems are reviewed monthly to reflect changes in market conditions and the
Group’s activities. A risk register is maintained and reviewed monthly by the Executive and quarterly by the Audit,
Finance, Risk Management & Compliance Committee.
The Group’s principal financial instruments comprise credit income funds, cash and short-term deposits,
receivables and payables. The main purpose of these financial instruments is to generate a return on members’
funds. The Group has various other financial instruments such as trade receivables and trade creditors, which arise
directly from its operations.
The Group manages its exposure to key financial risks in accordance with the Group’s financial risk management
policy. The objective of the policy is to support the delivery of the Group’s financial targets while protecting future
financial security.
The Group does not enter into or trade financial instruments for speculative purposes. The main risks arising from
the Group’s financial instruments are interest rate risk and credit risk.
There was no change to the Group’s approach to capital management during the year. The Group is not subject to
externally imposed capital requirements.
MARKET RISK
Market risk is the risk that changes in market prices such as foreign exchange rates, bond and interest rates will
affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising
the return.
At the date of the statement of financial position, the main exposure to the Group to market risk was via
the Perpetual Credit Income Fund. The Fund invests in a diversified range of income-generating assets and aims
to provide the Group with regular income, consistent above benchmark returns, and with low volatility.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
63
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
At 31 December 2014, if the underlying unit price had moved as illustrated in the table below, with all other
variables held constant, pre‑tax profit and retained earnings would have been affected as follows:
20142013
IMPACT ON IMPACT ON
PROFIT BEFORE
IMPACT ON PROFIT BEFORE
IMPACT ON
TAX EQUITY
TAXEQUITY
If there were $0.04 (2013: $0.04) increase
in underlying unit price with all other
variables held constant
–
If there were $0.04 (2013: $0.04) decrease
in underlying unit price with all other
variables held constant
(614,736)
614,736
–
–
588,575
(588,575)
–
At 31 December 2014, if the rate of return of distributions from funds invested with Perpetual Credit Income Fund
had moved as illustrated in the table below, with all other variables held constant, pre‑tax profit and retained
earnings would have been affected as follows:
20142013
IMPACT ON IMPACT ON
PROFIT BEFORE
IMPACT ON PROFIT BEFORE
IMPACT ON
TAX EQUITY
TAXEQUITY
If there were 100 basis points
(2013: 100 basis points) increase in interest
rates with all other variables held constant
151,852
–
153,919
–
If there were 100 basis points
(2013: 100 basis points) decrease in interest
rates with all other variables held constant
(151,852)
–
(153,919)
–
CREDIT RISK
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to
meet its contractual obligations, and arises principally from the Group’s receivables.
At the date of the statement of financial position, except for bank balances and fixed deposits placed with financial
institutions which are regulated, there was no significant concentration of credit risk. The maximum exposure to
credit risk is represented by the carrying amount of each financial asset in the statement of financial position.
There is no collateral held by the Group for the financial assets recognised in the financial statements as at
31 December 2014.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
64
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
LIQUIDITY RISK
Liquidity risk is the risk that the Group will not meet its financial obligations as they fall due. The Group manages its
liquidity risk by holding cash and various interest‑bearing deposits with varying maturity dates.
The total contractual cash flows of the Group’s financial liabilities are the same as their carrying amounts and are
due within one year.
ESTIMATION OF FAIR VALUES
The carrying amounts of financial assets and liabilities with a maturity of less than one year (including trade and
other receivables, cash and cash equivalents and trade and other payables) are assumed to approximate their fair
values because of the short period to maturity.
INTEREST RATE RISK
The Group’s exposure to interest rate risks is minimal as the Group does not have any debt instruments. The only
interest rate exposure relates to the cash and cash equivalents and interest-bearing deposits as reported in the
statement of financial position.
At 31 December 2014, if interest rates on funds held in term deposits and other interest-bearing accounts
maintained by the Group had moved as illustrated in the table below, with all other variables held constant, pre‑tax
profit and retained earnings would have been affected as follows:
2014
2013
IMPACT ON IMPACT ON
PROFIT BEFORE
IMPACT ON PROFIT BEFORE
IMPACT ON
TAX EQUITY
TAXEQUITY
If there were 100 basis points
(2013: 100 basis points) increase in interest
rates with all other variables held constant
121,528
–
152,196
–
(121,528)
–
(152,196)
–
If there were 100 basis points
(2013: 100 basis points) decrease in interest
rates with all other variables held constant
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
65
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
DIRECTORS
OF THE BOARD
The Group’s exposure to interest rate risk and the effective weighted average interest rate for classes of financial
assets and financial liabilities are set out below:
FIXED INTEREST RATE
MATURING IN:
WEIGHTED
FLOATING
NON‑
AVERAGE
INTEREST
1 YEAR MORE THAN INTEREST-
INTEREST
RATE
OR LESS
1 YEAR
BEARING
TOTAL
RATE
$$$$$%
2014
FINANCIAL ASSETS
Cash and cash equivalents
1,864,080
–
–
500
1,864,5803.64%
Interest-bearing deposits
–
9,717,118––
9,717,1183.76%
Trade and other receivables
–
–
–
272,949
272,949
Other assets
–––
325,024
325,024
Other deposits
–
590,418
–
10,860
601,2783.93%
Total financial assets
1,864,08010,307,536
–
609,33312,780,949
FINANCIAL LIABILITIES
Trade and other payables
–
–
–
Total financial liabilities
–
–
–987,618987,618
987,618
987,618
2013
FINANCIAL ASSETS
Cash and cash equivalents
1,183,446
–
–
454
1,183,9004.05%
Interest-bearing deposits
–
13,768,312––
13,768,3123.94%
Trade and other receivables
–
–
–
700,062
700,062
Other assets
–––
191,604
191,604
Other deposits
–
601,278
–
10,862
612,1403.98%
Total financial assets
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
1,183,44614,369,590
–
902,982 16,456,018
FINANCIAL LIABILITIES
Trade and other payables
–
–
–
Total financial liabilities
–
–
–251,059251,059
251,059
251,059
2014 ANNUAL REPORT
66
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
17. OPERATING LEASES
20142013
Non‑cancellable operating lease rentals are payable as follows:
Within one year
Between one and five years
More than five years
$$
772,456
2,664,508
224,449
672,275
2,509,923
647,780
3,661,4123,829,978
Total
The Group leases all its offices under operating leases. These leases run for periods up to seven years. The Group
does not have any option to purchase the leased assets at the expiry of the lease period.
18. KEY MANAGEMENT PERSONNEL AND DISCLOSURES
DIRECTORS
The directors of Financial Services Institute of Australasia during the year were:
Marianne Birch
Kevin Smout
David Gall
Mark Spiers
Jane Dharam
Russell Thomas
Alasdair Jeffrey
Loretta Venten
Warwick Negus
Patrick Waite
Malini Raj
Victoria Weekes
Michael Skully
The non‑executive directors of the Company are appointed on an honorary basis and as a result do not receive
remuneration directly or indirectly in their capacity as directors from the Company or any related party. The CEO
was appointed by the Board as an executive director and was remunerated as an employee of the Company.
Transactions entered into during the year with directors and their related parties were within normal customer
relationships on terms and conditions no more favourable than those available to other members or customers.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
67
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
KEY MANAGEMENT PERSONNEL
Russell Thomas Chief Executive Officer and Managing Director
David O’Kane Chief Operating Officer and Company Secretary
Angie Corkhill Director, Member Relations
20142013
Transactions with key management personnel
Short-term employee benefits
Post-employment benefits
$$
809,867
55,133
717,367
50,826
865,000768,193
Total
Short-term employee benefits consist of salaries, annual leave paid within the 12-month period, non‑cash benefits
and bonuses payable. Post-employment benefits consist of the component of salaries paid and payable as
superannuation.
19. AUDITOR’S REMUNERATION
20142013
Audit services
Other services
Deloitte Digital – CRM, CMS, Digital platform
Deloitte Digital – Professional services
Deloitte Tax Services
KPMG and Others
Other services
$$
39,900
39,900
814,934
381,402
3,834
–
–
–
5,027
16,000
1,245,09755,900
Total
The auditors of the Group are Deloitte Touche Tohmatsu, Sydney.
Includes fees for taxation advice provided by Deloitte Tax Services and consulting services provided by Deloitte
Digital to the Group, including a review of alternative CRM and CMS products and a scope of works proposal
for design, build, test and implementation of a new digital platform for Finsia. Other services include $814,934
for the implementation of the new CRM, CMS and digital platform, which are included as Intangible assets in the
Consolidated Statement of Financial Position. These non‑audit services were pre‑approved by the audit committee
before engagement.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
68
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
20. CONTROLLING ENTITY DISCLOSURE
As at, and throughout the financial year ended 31 December 2014, the parent entity of the Group was Financial
Services Institute of Australasia.
20142013
RESULTS OF CONTROLLING ENTITY
Loss for the period
Other comprehensive profit
$$
(2,260,061)
(2,029,164)
Total comprehensive loss for the period
(2,260,061)(2,029,164)
Current assets
Total assets
Current liabilities
Total liabilities
427,494
2,499,777
15,858,847
15,912,531
521,058
1,877,328
12,856,273
12,908,873
(13,412,754)(11,074,504)
Members’ Funds
Current assets include:
– Loan to Finsia NZ Limited
Current liabilities include:
– Loan from Finsia Education
640,375
759,836
12,364,708
10,034,006
The loans represent the intercompany transfer of revenue received by Financial Services Institute of Australasia
from Finsia Education, net of cost of recharge. The loan payable to Finsia Education is a non-interest-bearing loan
and there is no set time period for the repayment of this loan.
FINSIA NZ LIMITED
This represents a loan from Financial Services Institute of Australasia to Finsia NZ Limited. The loan is
non‑interest‑bearing and without a fixed repayment schedule. The Company has issued a letter of support to
Finsia NZ Limited to provide ongoing support to enable it to continue to meet its obligations as, and when, they
fall due. The loan has been recognised as an additional investment in the subsidiary.
GOING CONCERN – LETTER OF SUPPORT
The controlled entities of Financial Services Institute of Australasia are Finsia Education and Finsia NZ Limited.
As outlined in Note 3(e), Finsia Education has issued a letter of support to Financial Services Institute of Australasia
to assist it in continuing to meet its obligations as, and when, they fall due.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
69
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
ANNUAL
FINANCIAL
REPORT
FINANCIAL
REPORT
21. NOTE TO THE CONSOLIDATED STATEMENT OF CASH FLOW
20142013
(a) Reconciliation of cash and cash equivalents
Cash and cash equivalents at the end of the financial year,
as shown in the Statement of Cash Flow, are reconciled to the
related items in the Statement of Financial Position as follows:
Cash and Cash Equivalents
(b) Reconciliation of profit after tax to net cash flows from operations
Loss after income tax
Add non‑cash items
Depreciation and amortisation
Loss on disposal of fixed assets
Changes in assets and liabilities during the financial year:
Decrease/(increase) in receivables
(Increase)/decrease in prepayments
Increase/(decrease) in trade payables
Decrease in membership subscriptions in advance
(Decrease)/increase in provisions
$$
1,864,580
1,183,900
(2,591,968)
(2,905,206)
153,297
–
136,035
245
427,113
(133,420)
736,559
(200,792)
(90,199)
(44,375)
341,549
(166,442)
(214,190)
346,683
Net cash flows used in operating activities
(1,699,409)(2,505,700)
22. EVENTS SUBSEQUENT TO BALANCE DATE
There have been no subsequent events since balance date to the date of this report that in the directors’ opinion
would significantly affect the operation of the Group.
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
70
OVERVIEW
FROM THE
PRESIDENT
FROM
THE CEO
2014 AT
A GLANCE
VISION
IN ACTION
COUNCILS AND
COMMITTEES
CORPORATE
GOVERNANCE
DIRECTORS
OF THE BOARD
ANNUAL
FINANCIAL
REPORT
CONTACT DETAILS
AUSTRALIA
VICTORIA AND TASMANIA
INTERNATIONAL
NATIONAL OFFICE
LEVEL 18, 1 BLIGH STREET
SYDNEY NSW 2000
LEVEL 46, 525 COLLINS STREET
MELBOURNE VIC 3000
PO BOX H99
AUSTRALIA SQUARE
NSW 1215 AUSTRALIA
T61 2 9275 7900
1300 346 742
T61 3 9666 1000
F 61 3 9666 1099
T 61 2 9275 7900
F 61 2 9275 7999
F 61 2 9275 7999
www.facebook.com/finsiayfp
www.finsia.com/linkedin
www.finsia.com/twitter
Finsia.com
Finsia – Financial Services Institute of Australasia
ABN 96 066 027 389 ACN 066 027 389
Finsia NZ Ltd GST 96 458 150
FINSIA – FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA
2014 ANNUAL REPORT
71