Why business and finance students should learn the lessons of the global economic crisis

As the world strives to recover from the global economic crisis, it is important that the next generation of business and finance graduates learns the lessons from the past to ensure a more prosperous future.

Educating the next generation of financial planners and business leaders has never been more important, says a leading financial expert.

The string of high profile collapses of major banks, mortgage lenders and financial advisory firms has demonstrated a need for better education of the people leading and advising these institutions, Griffith Business School’s Associate Professor Mark Brimble said.

"In Australia, several financial planning firms and investment vehicles went broke in the wake of the global financial crisis, which revealed poor lending practices and inappropriate advice from financial planners that led to a lot of average people to lose their life savings," Dr Brimble said.

One such example was Storm Financial - a Queensland-based financial planning firm that was exposed for offering inappropriate advice and encouraging their clients to over commit, meaning many lost everything when financial markets crashed last year.

Positive steps for business and finance

“Internships, mentoring and better cooperation between the industry and universities was required to reduce the risk of a repeat of the disaster that devastated many families”

In the devastating wake of these collapses, reviews by the Financial Planning Association (FPA) as well as the Australian government ensued.

Several of these reviews found that financial planners needed to be degree qualified, more client focused and more aware of the 'bigger picture', Dr Brimble explained.

"The recommendation was that there was a need for tertiary qualifications and experience prior to practising, and a strong need for more structured mentoring and engagement programmes," Dr Brimble said.

Internships, mentoring and better cooperation between the industry and universities was required to reduce the risk of a repeat of the disaster that devastated many families, he said.

"The goal is to turn financial planning into a profession with much higher standards and expectations than we’ve seen in the past.

"This new breed of degrees, with the focus on financial planning, will ensure that a savvy contingent of new financial planners are prepared to take the next positive steps for rebuilding the reputation of the industry," Dr Brimble said.

Written by Julia Phipps (2010)
Communications - Business & Law
External Relations
Griffith University

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