Leadership, growth in China

In December 2010, CSI Global Education conferred its wealth management designation, the Chartered Strategic Wealth Professional (CSWP), to the first cohort of financial advisors from China. Twenty-five financial professionals from Guangfa Securities, one of the largest Securities firms in China, were awarded the CSWP designation at the graduation ceremony in Guangzhou, Guangdong, China, hosted by Guangfa Securities and CSI.

This milestone shows that the professionalization of financial services has truly become a global trend as markets shift and investors are becoming savvier.

Over the years, Canada has emerged as a role model in financial services best practices. The stability and resilience of our financial institutions during the recession offers important lessons for capital markets around the world. Leading best practices in global financial education, CSI is sharing these lessons with other countries, establishing meaningful business relationships with international partners while raising Canada’s profile.

Learning from North America’s experience

The North American financial services industry has gone through dynamic changes over the last fifteen years, demonstrating the trends that other markets are beginning to experience. The increasing sophistication of products and their growing, inherent risks, as well as demographic trends supporting wealth accumulation are the key drivers of these changes.

In this milieu, wealthy investors with more complex needs are looking for convenience, a close investor-advisor relationship, and a full service and product offer. They also demand to be served from organizations with credibility and a good understanding of their special needs. Organizations that understand this have a competitive advantage.

The wealth management message resonates very well with countries like China that are looking for international best practices they can emulate. They see the future of wealth management and are educating their most proficient, front line people to address it.

China’s financial markets are rapidly developing

China, one of the world’s economic leaders and, with over 1.3 billion people, the most populous state in the world, is one example of a country where rapidly developing financial markets are driving the need for wealth management training and development.

With an exponentially growing wealth segment, China is at the early stages of the same transitions Canada experienced not long ago. Similar to their North American counterparts, China’s wealth market players will increasingly require integrated solutions, including a full service, product and relationship offer, combined with a culture and leadership differentiating them as institutions of choice for affluent individuals.

By the numbers

• At the end of 2009, China had 670,000 households with more than $1 million wealth, up 60 per cent from the same period in 2008 (China Daily)
• The country’s composite wealth grew by some 28 per cent from the end of 2008 to the end of 2009, to $5.4 trillion (China Daily)
• Entrepreneurs account for the majority of China’s high-net-worth population (those with assets under management exceeding $1 million) (China Daily)

CSI’s Chartered Strategic Wealth Professional program (CSWP)

The Canadian financial professionals and institutions began to recognize and define the special attributes of the HNW market about ten years ago. A number of different relationship and service models have been attempted to capture market share – with modest success.

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In 2005, CSI recognized a void in financial education programs and the need for a recognized designation to address the financial and psychological expectations of these niche markets. A three-year commitment of CSI’s full resources to research and development culminated in the specialized Chartered Strategic Wealth Professional (CSWP) designation, which is now available to Chinese professionals.

The CSWP delivers the competencies that meet the requirements of this changed landscape. Designed to create and retain life-long relationships with High Net Worth (HNW) individuals, meeting their financial planning and wealth management needs, the CSWP brings together, explains and demonstrates the approaches and methods called for by the realities of the global markets.

The CSWP for China

Guangfa Securities has become the first Chinese securities firm to embrace the tenets and business acumen of the CSWP wealth management offer.

While most wealth management principles and practices are universal, the Chinese equivalent of the Chartered Strategic Wealth Professional program recognizes important differences between Canadian and Chinese regulations, systems and cultures, and content has been tailored accordingly. All text material is fully translated, and all lectures are professionally interpreted by industry knowledgeable individuals.

Guangfa Securities commits the CSWP program participants to a total of nine weeks of intensive study, mixed with institutional visits and tied to relevant wealth management courses. Upon successful completion of the exams, designates develop and present a comprehensive wealth management plan to a panel of experts to demonstrate and prove their proficiency. They also commit to the Code of Ethics, which helps to support the trusted relationship fundamental to an effective wealth management offer.

This focused, condensed and leading-edge training in the “must-know” principles of wealth management is a rare opportunity for China’s CSWP designees to leap ahead of competition and prepare for the future of China’s financial system.

Designations on a global plateau

The transfer of successful financial education models, best practices and internationally recognized designations across the globe plays a crucial role in developing a robust framework of professional standards. Having these ground rules for high-quality financial services delivered consistently across international markets is critical to the health and stability of Chinese, Canadian and global financial systems.

Dr. Roberta Wilton is President and CEO of CSI, Canada’s leading provider of financial services education. Prior to joining CSI, she operated her own company specializing in capital markets education and investor relations.