Despite regulations in place to ensure that only qualified practitioners may provide financial advice, there are still under-qualified entities operating in Malaysia, said K R Raju in an interview.

There are individuals and institutions distributing financial products without the qualifications, skills, competence, and technical know-how they are required to have.

The image of the financial adviser is therefore being tarnished, explained Raju, which is affecting everyone in the industry.

It is crucial that some form regulatory enforcement takes place, in order for the industry to continue to grow in a healthy manner, he said.

Raising standards

The regulators play an active role in educating clients, said Raju. They have frequent investor awareness talks, and disseminate informative materials to Malaysian investors.

In line with this, market practitioners do get the opportunity to liaise with the regulators, and express their concerns to them, he added.

The product manufacturers also have a responsibility to ensure that only the right people are distributing their products, stated Raju.

They may be tempted to be more aggressive in terms of getting their products sold. But if advisers who do not have sufficient competence, knowledge and experience simply push products, this can give the profession – and the industry as a whole – a bad name, he added.