SIDC logo
Securities Industry Development Corporation
[Direct to content]

MEDIA CENTRE - Keynote Speech by John Zinkin

John Zinkin Keynote

Monday, 30 July 2007

Keynote Speech by

John Zinkin
CEO, Securities Industry Development Corporation

at the SIDC - ITI Launch

SIDC-ITI Launch

Speech by John Zinkin,
CEO, Securities Industry Development Corporation

YBhg Dato' Zarinah Anwar, Chairman, Securities Commission and SIDC
YBhg Dato' Yusli Mohamed Yusof, CEO Bursa Malaysia and Director of SIDC
Dr Nik Ramlah Mahmood, Senior Executive Director, SC, and Director SIDC
Tan Sri, Tan Sri, Dato, Dato'
Ladies and Gentlemen

  1. It is a great privilege for me to be part of the launch of the Securities Industry Development Corporation, and of a revolutionary capital markets and investor education initiative – the Industry Transformation Initiative.

  2. As you have just heard, SIDC is recognised by capital market regulators worldwide as an expert source of assistance, advice and training. Although it is a Malaysian organisation, its remit is global and its track record is impressive, both domestically and regionally – a symbol of Malaysia at its best.

  3. It is a truly impressive legacy which I find humbling. It is easy to make a difference in an organisation that is in trouble or only mediocre. It is so much more difficult when taking on the responsibility to build on what is already world-class.

  4. I salute my predecessors in the SC and the entire SIDC staff for a job well done.

  5. The temptation, when successful, is to relax. And yet SIDC operates in a rapidly changing environment, so we cannot rest on our laurels.

  6. Rapid technological changes and the proliferation of products, capabilities and techniques across boundaries have increased competition from all over the world.

  7. The blurring of boundaries is not just geographical, but also sectoral, with bancassurance and investment banking crossing the boundaries between financial and capital markets.

  8. So, just to maintain Malaysia's competitiveness in the international and domestic markets, we have to improve the core competencies of our capital market intermediaries.

  9. The challenge is even greater if Malaysia is to stay ahead of the game and achieve the goals laid out in the Capital Market Masterplan. If the capital market is to become a growth engine as opposed to an enabler as envisaged in the Capital Market Masterplan, we must have intermediaries who are able to add value rather than just transact orders.

  10. And that brings me to the role of the SIDC in developing the Industry Transformation Initiative.

  11. Why is it called the Industry Transformation Initiative?

  12. The answer is simple: the objective is to transform the industry through a step-change in the behaviour of its intermediaries.

  13. We did not sit in some ivory tower and decide what needed to be done and impose it on the market.

  14. Instead, in 2006, we surveyed the market and, based on 1,313 responses out of a total sample of around 5,000 intermediaries, we established what the market believed are critical improvements in technical skills to cope with the rapid changes I just mentioned, including the emergence of Islamic capital markets as a dynamic growth sector where Malaysia is in a leading role worldwide.

  15. We went further and analysed 112 job descriptions to understand what the critical success factors were in adding value, allowing us to create 8 job groupings.

  16. We then looked at the core competencies and established that there are 16 interpersonal skills which, when combined with the technical skills, take intermediaries from being merely good... to being great.

  17. The challenge we faced was how to combine these effectively, and so we sought advice from the Toronto International Leadership Centre for Financial Supervision in Canada - the best in its field in the world - in designing each module and the curriculum as a whole.

  18. We are also working with our strategic partners - Securities & Investment Institute in the UK, and the Financial Services Institute of Australasia in Australia – to ensure that the technical content is truly world-class and recognised in London, Sydney, Singapore and Hong Kong.

  19. The result - the ITI - is not just new to the region; there is quite simply nothing else like it in the world. Nowhere else can participants be taught technical content, which is then used as a vehicle to learn the interpersonal skills that are so vital to success, using a unique combination of subject matter experts and facilitators.

  20. Merging the two sets of core skills – technical and interpersonal – in a seamless manner like this has not been done before in the UK, Australia or even in Canada.

  21. What sets the ITI apart from previous programmes is that it is focused on outcomes as opposed to inputs and on changing not just the skill set of intermediaries, but also their behaviour. This change in behaviour is critical to their ability to continue to add value in the future.

  22. The ITI programme consists of 12 core modules with 13 electives. All modules earn 10 CPE points.

  23. The modules are developed to international standards. They are moderated by both the SII in the UK and FINSIA in Australia with a view to becoming part of a curriculum that leads to an internationally accredited certification.

  24. Within this framework, we are setting up a professional body for intermediaries at the end of 2008, known as the Capital Markets Association.

  25. The CMA will have accreditation at three levels – Associate; Member; and Fellow. The intention is to get mutual recognition through accreditation by SII in the UK and FINSIA in Australia.

  26. Setting up the CMA is part of a worldwide trend recognising the need for professional, accredited skills that are so important to career development.

  27. Establishing the ITI and the CMA is a huge project – requiring substantial injections of thought, effort and funds. That the ITI is being launched today demonstrates yet again the sustained commitment of the SC to human capital development.

  28. The development costs are covered entirely by the CMDF and the costs of running the modules are heavily subsidised – to the tune of 75%.As a result, a two-day module where two disciplines are learnt at the same time will cost only RM250 – incredibly good value for money.

  29. The unique combination of technical and interpersonal skills to transform the behaviour of intermediaries lies at the heart of the ITI programme. It is this combination that will raise the bar and deliver the professional excellence needed to make the Malaysian capital market the first choice for investors locally and globally.

  30. To reflect the expected improvements in the performance of capital market intermediaries, the SIDC, with Bursa Malaysia, will recognise dealers and remisiers with an annual Dealer's Representative Award, one for the Best Paid Dealers' Representative and one for the Best Remisier.

  31. These new awards are designed to highlight the performance of licensed representatives deserving recognition and spotlight their professionalism and quality for others to emulate.

  32. Any person holding a Securities Commission dealer's representative license and a minimum of two years experience in the industry is eligible to be nominated for the award.

  33. The awards are peer-based – much like “footballer of the year” for those of you who know how these things work. Dealers will be recognised and chosen by a jury of peers, based on four criteria - customer focus, ethics and professionalism, capital market knowledge, and sales targets.

  34. We will have our own Ronaldinho, Zidane and Pele, except that they compete to win in a different playing field.

    Ladies and gentlemen

  35. To quote Nietzsche, 'To do great things is difficult; but to command great things is more difficult.'

  36. Working very closely with the SC, the SIDC must and will continue to innovate, so that Malaysia will be recognised globally as a leader in capital market training and development.

Thank you.

Back to Media Centre