PETALING JAYA: The Securities Commission (SC) will be expanding the scope of specific advice by financial planners (FPs) to include stocks and bonds, says chairman Datuk Syed Zaid Albar.
FPs, who help clients manage their finances, can now play a central role in encouraging informed participation in the stock and bond market, he said.
The new policy development is in line with the strategic thrusts of the SC’s recently established Joint Action Plan.
“Clearly, this will require competencies, and further details of this policy will be released in due course, ” said Syed Zaid in his keynote speech at the annual Signature Financial Planning Symposium organised by the Financial Planning Association of Malaysia yesterday.
“With a strong financial planning industry, Malaysians can rest assured that a major pillar of support for proper investment guidance is in place. FPs can play a vital role in protecting investors against bad investment choices, ” he said.
He also announced a pilot programme between the Private Pension Administrator Malaysia and licensed financial planners with SmartFinance, where a retirement advisory platform will be established for members of Private Retirement Schemes (PRS).
Syed Zaid said the initiative aims to position FPs as important pillars in guiding Malaysians towards better financial well-being and to fulfill the growing demand for retirement advice.
“As the financial planning industry matures, various planners have started to think harder about their future direction and they need to source for new growth opportunities.
“That is why the SC has liberalised certain policies, along with other measures, to make room for the industry to grow and move up the advisory value chain, ” he said.
Syed Zaid also commended the financial planning industry for coming together to set up two industry working groups in enhancing the breadth and sophistication of the role of FPs, as well as, improving professional standards.
On another note, he said a worrying trend has emerged, as the number of scams has increased.
He said many people had fallen victim to these scams due to having little exposure or understanding of useful financial concepts and basics such as inflation, interests or diversification of risks.
“That’s precisely why it’s so important that we are all involved in improving financial literacy in a systematic, sustained and coordinated way.
“The Financial Education Network – an inter-agency grouping co-chaired by the SC and Bank Negara – is committed to working collaboratively with organisers and industry associations to deliver the National Strategy for Financial Literacy.
“This is to help Malaysians to be aware and empowered to manage their money wisely, to plan ahead and invest for their future while protecting themselves from scammers, financial fraud and abuse, ” he added. — Bernama
Already a subscriber? Log in
Get 20% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
