Apply Principles of Professional Practice to Work in the Financial Services Industry

This document discusses the application of principles of professional practice in the financial services industry. It covers topics such as financial aggregates, exchange rates, and index of commodity prices. It also explores the banking sector and its professional development needs and goals.

Apply Principles
Of
Professional Practice
To Work In
The Financial Services
Industry

Table of Contents
TASK 2............................................................................................................................................3
Financial Aggregates:..................................................................................................................3
Exchange rate:..............................................................................................................................7
Index of Commodity Prices:........................................................................................................8
TASK 3..........................................................................................................................................10
REFERENCERS............................................................................................................................15

TASK 2
Reserve Bank of Australia is prime or central bank in Australia and authorised for
issuance of banknotes. This bank is continuously playing this role since January,14 year 1960,
when in Australia Reserve Bank Act,1959 has been abolished centralised banking roles/functions
from Commonwealth Bank (Chen et.al., 2012). This bank publish some statistics reports on its
website which contains vital information about economical and financial performance of
country. Following are some major reports that reserve bank publish, as follows:
 Financial Aggregates
 Weights for the TWI
 Index of Commodity Prices
 Weights for the ICP
 Exchange Rates
All these reports are collectively or separately used by investors, corporations,
importers, exporters, foreign investors etc. For study purposes following three reports are
selected and analysed here:
Financial Aggregates:
All growth rates are calculated seasonally for financial aggregates and modified for
impact of gaps by reserve bank. Financial aggregate figures are not modified for series splits, so
credit-level data shouldn't be used to measure growth rates. Historical levels as well as growth
rates with respect to fiscal aggregates have been amended due to some fiscal intermediaries
resubmitting data, re-estimating seasonal variables and incorporating securitization information.
RBA credit indexes assess credit given by locally operated financial institutions. These do not
detect intermediates or cross-border lending (Ennew, Waite and Waite, 2013). Financial
aggregates are incorporated an enhanced conceptual structure as well as unique compilation of
information since release in July 2019. It is called collection of Economics and Financials
Statistics (EFS). Legislators and wider community using the financial aggregates widely.
Monitoring shifts in bank credits supplies is relevant as it allow to understand what's going on in
economy. It may also be beneficial to detect shifts in credits to recognize risks to economic
stability. Following are financial aggregates level growth graphs as presented below:

From above graphical presentation it has been analysed that currently credit-growth in
housing sector has been decreased in year 2019 which is nor below 10%. While in business
sector growth has been increased currently. Personal sector growth rate is continuously falling
after year 2015. Growth rate in all three sector is currently below 10%. Which indicates that in
Australia people are not so much attracted with long term loan facilities they mainly move
towards short-term credit facilities like credit card, short-term overdraft faculties etc. While
upward growth in business sector indicates that corporate debts have been increased which
mainly due to new start-ups (Australia's Financial Aggregates. 2019).
Exchange rate:
Exchange rate is basically the amount at which one currency is being exchanged for
another on the agreed term and conditions. These are simple in calculation but keeps on chaining
day to day because of several external factors. An exchange rate is really the foreign value of
some other money of a nation. In certain terms, this reflects how often foreign money
transactions a customer may purchase from their domestic currency from one component.
Exchange rate that are published every day except bank and public holidays (Vanclay, Baines
and Taylor, 2013).
Exchange rates are formulas used in all global markets, like banking, trade and
development. Such prices are used by companies and shareholders to equate the buying power
within economy with those of some country. In Australia after 1 July 2008 the price display in
US dollar is WM / Reuters Australian Dollar set at 4:00 pm (Sydney) the day involved, which is
measured to four decimal points. Rates seen for many other economies were determined by
passing the US dollar level with the mid-point purchase and sale price estimates of the Reserve
Bank cited at the same period. The trade-weighted index is computed on the US currency as well
as other currencies prices (Biethahn and Nissen, 2012). Examples of the exchange-weighted
index method of calculation were provided in the October 2002 Bulletin and the latest balances
are accessible on the Bank web pages. Such prices are indicators of market price and it may vary
to those cited by foreign currency brokers as well as other outlets of market price. thus daily
latest rate of foreign currencies according to Australian Dollar are as follow (Exchange Rates.
2019):
27 Nov 2019 28 Nov 2019 29 Nov 2019

United States dollar 0.6777 0.6763 0.6777
Chinese renminbi 4.764 4.753 4.766
Japanese yen 73.96 74.02 74.19
European euro 0.6154 0.6144 0.6155
South Korean won 797.42 797.56 800.74
Singapore dollar 0.9257 0.9238 0.9259
New Zealand dollar 1.055 1.0529 1.0551
From the above tables it has been analysed that current exchange rate in context of
Australian Dollar keeps on chaining due to several factors. These are trade movement where any
import and export have a major impact on the fluctuation of exchange rate. Stock dealing
operation which includes granting of loans, sale and purchase of foreign securities due to which
demand for funds needed to deal in foreign market happen impacting exchange rate to change.
One of the main reason for changes in the rate of exchange is banking operation such as they are
responsible for selling draft, issue letter related to credit terms, collect and recognise the bills of
exchanges transfer funds etc. Due to these number of banking dealing the supply and demand of
foreign currencies increase and this impact the exchange rate in both positive and negative
manner (Türegün, 2013).
The Rate is exchange is useful for number of trader that gets impacted due to changes
some of these are Scalper those make number of trade in a day in order to attempt to retain a
small profit. Momentum traders consider stocks which have been moving with one way that is
high volume so that desired profit can be made (Suárez-Barraza, Smith and Dahlgaard-Park,
2012). Technical trader are also helpful with exchanges rate reports ad the focus on charts and
graphs in order to analyse the stock graph to make a option of purchase or sell. Swing traders
which are treated as the fundamental traders those make a investment in share for more than a
single day and requires a price movement sufficient to claim a desired profit in future.
Index of Commodity Prices:
In Australia there are number of ways that help in raising the income level that majorly
increase the overall economy of entire world. The commodity export is consider to be one of the
most crucial and effective way to generate income with the Australian economy. Exports of

products contributed for even more than 55% of total trade and 11% of GDP an aggregate, above
the previous decade's rates (Index of Commodity Prices, 2019). Increases in export values
account for about three-quarters of variations in domestic demand since 1990, changes in export
markets could have a major impact on Australia's exports and economic growth. The Bank
regularly updates the measure to guarantee that perhaps the items of value to the Australian
domestic market are used and that the cost indexes used for these goods are sufficient.
The Bank would continue to issue an additional ICP focused on market price fluctuations
of bulk products, illustrating the relative value of bulk product sales to the Australian economy.
Changes to the Coverage of the Index
The Bank annually checks the ICP's structure to insure it encompasses Australia's big
resources exported. The share of global price of Australian product exports is a factor in deciding
whether a resource is to be in the ICP. The rates for commodity goods included in the current
ICP are focused on ABS composite information on export costs, that is a fixed percentage of spot
through contract values. Average export rates often represent fluctuations in the value of
manufactured goods, while spot and contractual prices are of standardized nature; for instance, a
commonly accepted spot price for iron ore is focused on a 62% iron content.

ICP
weights(a)
Change(b)
2008/09 to
2010/11–2011/12
Existing Updated
(2008/09)
(2010/11
–
2011/12) Price(c)
Volume(
d)
Rural commodities(e) 10.3 10.9 7 19
Wool 1.1 1.4 46 −4
Beef and veal 3.2 2.5 −3 −2
Wheat 3.2 3.2 −18 50
Barley 0.6 0.7 −10 44
Canola 0.4 0.6 4 95
Sugar 0.7 0.7 49 14
Cotton 0.3 1.1 54 189
Milk powder 0.8 na 4 −9
Lamb and mutton na 0.8 20 −14
Base metals(e) 6.8 5.8 7 −7
After 2008/09, the bulk goods have seen the biggest improvement in their importance
throughout the chart. Across the past few years, the height of iron ore has increased substantially,
highlighting a sharp rise in both iron ore prices and iron ore trade quantities. The weight has also
dropped for the base metals included in the ICP, while the weight for the rural commodities
included in the list has slightly increased.

TASK 3
Selected industry sector: I wish to work in Banking sector as Australia's banking sector is
slowly being deregulated and privatized. It is appropriate for foreign banks/institutions to join
financial market. Retail banks can now supply a broad range of different financial services like
stock brokering, life insurance, retail-customer protection, general insurance, corporate loans,
personal loans etc (Baker and Dellaert, 2017).
Professional development needs and goals are required for Baking Sector:
Baking sector is very dynamic sector as it is guided by regulations and rules of central
bank. These regulations are changed or modified frequently by Reserve Bank as required so in
order to work effectively in this sector professionals are required to keep updated with these
changes.
Self-analysis of own skills and knowledge gaps: The very first step ought to be to concentrate
internally when identifying abilities and gaps in knowledge and to evaluate where gaps occur in
own experience. And if we are in a prominent role like either a team leader, project leader, or
financial analyst role and have been in job over several years, likely to have major gaps. over all,
markets are constantly evolving and there is constant need for fresh skills and expertise. Skills
gaps in expertise are particularly likely if someone have had little to do with current involvement
in formal training (Evetts, 2014). There are also several methods to undertake skill gap
evaluation on your own, but using a quick online evaluation mechanism is among easiest and
quickest strategies. Conducting this sort of personal evaluation will enable us to accurately
determine what our strengths and major weaknesses are, placing in a much stronger position to
tackle weaknesses. SWOT analysis is key tool to analyse own skills and Knowledge gape as it
provides a clear view about our core strengths/weaknesses. In this context following is personal
SWOT analysis, as follows:
Strengths Weaknesses
 I'm pretty creative. I almost always
convince customers on their offerings
with fresh perspective.
 I interact with my customers and my
group well-manner.
 I have a heavy, obsessive need to
rapidly do stuff and delete them from
my "to do" list, as a consequence of
which the standard of my job often
suffers.

 To identify the best marketing strategy,
I have potential to raise critical
questions.
 As I introduce ideas to customers, I get
anxious, and this apprehension of
public presentation also draws energy
from my presentations.
Opportunities Threats
 This year, I will participate a huge
marketing meeting. It will allow
tactical networking and give some
excellent training seminars as well.
 One of the key competitor has build a
goodwill or reputation for treating their
small customers poorly.
 Due to current problem of staff
shortages in bank, I'm often-times
overworked and this adversely affects
my creativeness.
Evaluation of selected professional development activities
In the above discussion it has been clearly defined that banking sector is increasing year
by year due to number of reasons such as more chances of growth, better working environment.
As well as regular promotion offers and other additional benefits which make a banker job to be
most satisfied ion the present time.
Licensing requirements:
Rating scale
KSA (Knowledge, skills and attributes) Very good Good Adequate Limited
Knowledge :
Proper knowledge of different aspects ✔
Knowledge of legislations and laws ✔
Proper knowledge of HR policies ✔
Skills :
Skill to prepare letter templates ✔
Skill to manage HR assistant ✔

Communication skill ✔
Attributes :
Ability to monitor key performance indicator ✔
Assist and support to business ✔
Punctual of time ✔
Development objectives Level Activities to be
undertaken
Resources Timeline
1. Knowledge of
legislations and laws
Medium Training related to
laws and
regulation.
To enhance the
knowledge recent
laws and regulation
related to UK
banking sector must
be included.
2 months
2 Ethical High In this aspect, the
managers should
provide proper
training programs
in order to improve
HR policies.
In this, the resources
can be theoretical
contents published
by different authors
about human
resource policies.
3 months
3. Team working skill Medium It can be increased
with the help of
organising
different group
activities.
Listening and
understanding the
need of every team
member
1 month
4.Communication skill High I have to make
proper
communication
In order to make any
changes I can
undergo different
3 months

with everyone to
maintain this skill.
kind of books which
cloud motivate me
to improve my skills
5. Banking Knowledge Medium I can read banking
modules or attend
classes that can
develop banking
knowledge within
me.
This attribute can be
enhanced by
increasing
knowledge about
various aspects such
as team change,
restructure etc.
2 months
6. Time Management High I am good at
managing time as
well as punctual
enough so that my
work are
completed on
actual time.
To enhance, this
attribute, the HR
advisor should be
given example of
ideal staff members
who come on time.
This can motivate
advisor to become
punctual of time.
Less then
one month

REFERENCERS
Books and Journals:
Ennew, C., Waite, N. and Waite, R., 2013. Financial services marketing: An international guide
to principles and practice. Routledge.
Vanclay, F., Baines, J.T. and Taylor, C.N., 2013. Principles for ethical research involving
humans: ethical professional practice in impact assessment Part I. Impact Assessment
and Project Appraisal. 31(4). pp. 243-253.
Biethahn, J. and Nissen, V. eds., 2012. Evolutionary algorithms in management applications.
Springer Science & Business Media.
Türegün, A., 2013. Rebuilding professional lives: Immigrant professionals working in the
Ontario settlement service sector. Journal of International Migration and
Integration. 14(3). pp. 597-614.
Suárez-Barraza, M.F., Smith, T. and Dahlgaard-Park, S.M., 2012. Lean Service: A literature
analysis and classification. Total QualitIndex of Commodity Prices, 2019y Management
& Business Excellence. 23(3-4). pp. 359-380.
Baker, T. and Dellaert, B., 2017. Regulating robo advice across the financial services
industry. Iowa L. Rev. 103. p. 713.
Evetts, J., 2014. The concept of professionalism: Professional work, professional practice and
learning. In International handbook of research in professional and practice-based
learning (pp. 29-56). Springer, Dordrecht.
Chen, H.G., Yu-Chih Liu, J., Shin Sheu, T. and Yang, M.H., 2012. The impact of financial
services quality and fairness on customer satisfaction. Managing Service Quality: An
International Journal. 22(4). pp. 399-421.
Online:
Australia's Financial Aggregates, 2019. [Online]. Available through:
<https://www.rba.gov.au/publications/bulletin/2019/mar/updates-to-australias-financial-
aggregates.html>
Exchange Rates, 2019. [Online]. Available through:
<https://www.rba.gov.au/statistics/frequency/exchange-rates.html>
Index of Commodity Prices, 2019. [Online]. Available through:
<https://www.rba.gov.au/statistics/frequency/commodity-prices/2019/icp-1019.html>