Enhanced Competency Framework for Private Wealth Management Practitioners

HKMA recently announced the launch of an Enhanced Competency Framework (ECF) for private wealth management (PWM) practitioners in Hong Kong.

HKMA said it has led a Task Force, comprising representatives from the newly established Private Wealth Management Association (PWMA), Hong Kong Institute of Bankers (HKIB), Hong Kong Securities and Investment Institute (HKSI), and Treasury Markets Association (TMA), in developing the ECF.  Industry consultation on the ECF was completed in 2013, with general support from the industry.

The ECF is a non-statutory framework that sets out an enhanced level of core competence and on-going professional development of PWM practitioners who undertake customer-facing roles.  New entrants and relevant industry practitioners may meet the ECF benchmark by self-study and / or taking accredited training programmes, and passing examinations.  The training programmes and examinations will consist of two modules: Module 1 on technical, industry and product knowledge, and Module 2 on ethics and compliance.  Providers of the initial programmes and examinations will be HKSI for Module 1 and HKIB for Module 2.  The PWMA will be responsible for certifying qualified practitioners as Certified Private Wealth Professional (CPWP).

Following the financial tsunami, the professionalism of PWM practitioners has been severely criticized.  I had read the ECF consultation paper and found the contents of the CPWP programmes quite comprehensive and advanced.  The ECF is expected to serve as a benchmark of competency for private bankers, but how about PWM practitioners not working in the banking sector?  I don't see SFC has formally given any acknowledgement or blessing on the ECF, seemingly it is a single-handed project of HKMA, though HKMA's circular about the ECF was copied to SFC.

My questions:

• Can PWM practitioners licensed by SFC also complete the CPWP programmes and obtain SFC's recognition?
• Can other PWM related professional qualifications, like CFA, CWM, etc., get any exemption from the CPWP programmes?

Without covering all PWM practitioners (from banks and non-banks) in Hong Kong, I am afraid the ECF is only "a small circle game".