Banker S.A. April 2014 | Page 33

TRAINING Banking is changing – so are the skills required We need to move fast to produce the right skills in the quantities needed. T he financial sector is one of the fastest-growing employers in South Africa, with the number of employees increasing by 24.5% since 2000. Since 2000 the sector has grown at an annual rate of 9.1%, compared to broader economic growth of 3.6%. It comprises over R6 trillion in assets, contributes 10.5% of our GDP annually, employs 3.9% of the workforce, and contributes at least 15% of corporate income tax. It has survived the financial crisis relatively well, and continues its strong performance of the last decade. The global financial crisis, entering its sixth year, has challenged policy makers to revisit long-held beliefs in traditional and commonly accepted theories and practices and demonstrated a need for fresh thinking about how the economy works. Without a sufficient skills base the banking sector faces distinct dangers in an environment dominated by the rapid introduction of new regulatory and supervisory infrastructure. New occupational classes and skill requirements have been identified within banks to address the regulatory changes, and banks are focusing increasingly on compliance and risk management. Regulatory changes impacting the training needs of the banking sector include the introduction of the Financial Advisory and Intermediary Services Act of 2002 (FAIS ACT), which imposed strict requirements regarding the levels of experience and education of advisors in order to be licensed to give financial advice. Other regulatory changes impacting the skills needs of the sector include: • the Financial Intelligence Centre Act of 2003; • the National Credit Act of 2005; • the introduction of Basel II & III recommendations and; • the latest proposal to introduce the Twin Peaks regulatory framework for the financial sector in 2014. The draft legislation establishes two regulatory authorities a new prudential authority in the Reserve Bank, which will be responsible for overseeing the soundness of banks, insurers and financial conglomerates; and another authority to oversee market conduct in order to protect customers of financial services firms Edition 9 training .indd 31 BANKER SA 31 2014/04/07 9:33 AM