Philippine financial sector needs to adopt global standards

CEBU, Philippines - An official of the Financial Executives of the Philippines (FINEX) has called for continued good practices in the financial industry to stay competitive amid the economic integration looming in South East Asia.

Alice Uy, president of FINEX-Cebu, said that finance executives have a bigger role today in the corporate world, being the ones handling the financial health of various companies.

In an interview with The FREEMAN, Uy said that the quality of those working the financial sector must be sustained especially that some professionals have now started to practice in other South East Asian nations.

Uy pointed out that the academe's role also is very crucial as the industry highly depends on it in terms of the quality and competitiveness of graduates of finance-related courses.

The FINEX official also made an emphasis on the importance of educating new entrants in the industry especially financial advisors of banks and insurance firms on ethical practices.

"They have the role in telling private individuals on how to go about the money [for investment]," said Uy who is also a board member of the Mandaue Chamber of Commerce and Industry (MCCI).

Moreover, according to Uy, some Filipino certified public accountants (CPAs) have started to penetrate some ASEAN nations by establishing office. These professionals are expanding services -- not necessarily migrating -- as they have still retained their services in the Philippines, she said.

Uy believes there is no other way today but to adopt to global standards in practices, saying this is where the industry is heading to.

The Philippines is said to be advanced in training and knowledge with the implementation of the International Financial Reporting Standards (IFRS).

The Securities and Exchange Commission adopted in 2005 the IFRS to which directs that work quality of CPAs and their making of financial reports should be based on global standards.  (FREEMAN)