CFA Institute, under the leadership of President and CEO, Paul Smith, embarked on a multi-year research project and strategic focus under the banner of "Future of Finance". From its statement of intent, the following:
Leveraging our global network of members, we are uniquely positioned to help shape a more trustworthy, forward-thinking investment profession that better serves society. The Future of Finance works with a distinguished advisory council and a content council of industry leaders who provide input for projects and share our ideas throughout the investment community. Our goal is to motivate and empower the world of finance to become an environment where investor interests come first, markets function at their best, and economies grow. Our Future of Finance work focuses on opportunities for change.
On 22 October 2018, CFA Society South Africa hosted a Future of Finance workshop for 50 senior industry professionals to deliberate what the desired future state for the South African finance and investment industry should look like, and what actions can be taken to move from the current status quo to the desired future state. The workshop was structured around four topics, as follows:
- The Investment Firm of the Future
- The Investment Professional of the Future
- The Future State of the Investment Product / Solution
- The Future State of the Asset Owner
Each of the four topics were introduced by a discussion leader, followed by a round table discussion (groups of 10 people per table) to identify action items to achieve the desired outcome. The event took place under Chatham House Rule to encourage frank discussion and debate, without fear of any proposal or comment being attributed to a specific individual or firm.
An action plan document has been compiled and is an aggregated, summarised outcome of this industry "brainstorm" and has been structured to encourage industry participants to identify actions to which they can commit to effect change and transformation.
Download your Action Plan booklet hereAction Plans Booklet web.pdf
The next step is to organise some workgroups to translate words and ideas into action and impact. Contact Executive officer, Linda Hawkins firstname.lastname@example.org if you would like to participate in a specific initiative listed below
Investment Firm of the Future
|Proposed workgroup: Work with CFA Institute to define global ESG reporting standards and metrics of ESG impact, specifically addressing societal needs; metrics to measure the impact of a rand invested on the SA society at large|
Investment Professional of the Future
|Proposed workgroup: Establish a program to connect the investment profession to broader society to engender trust. Include some form of CE/CPD credit to recognise community-based work. Allow investment professionals to share our knowledge and educate.|
Future State of the Investment Product / Solution
|Proposed workgroup: Engage government to introduce further incentives that will boost a savings culture, not further indebtedness, e.g. introduce an extension or addition to the tax-free savings and investment account that allows a flexible packaged solution offering a combination of an emergency fund, funeral cover / education policy / life insurance / risk benefits / saving and investment for retirement across regulatory licenses. Design the equivalent of an employee benefit offering for low-income earners, part-time or contract workers, self-employed individuals, people in the informal sector.|
|Future State of the Asset Owner Proposed workgroup: Design and implement a system to educate and facilitate exercising of minority shareholder rights (e.g. voting at listed company AGMs), including shareholding in retirement funds, collective investment schemes, etc. to enhance the ownership and accountability experience|