More investment advisers needed

To meet growing demand:

Harshini Perera

The Sri Lankan capital market needs to increase the liquidity by introducing more listed entities giving more options for investors to invest. There should be no shortage of choices for investors at the market.

When there is a wide range of choices, investors will not go behind limited number of stocks, Stock Brokers’ Association President Sriyan Gurusinghe told ‘Daily News Business’.

The retail market is growing at a rapid pace but there is a shortage of investment advisers in the capital market especially to cater to the growing outside demand. Currently, there are around 500 investment advisers in the industry.

“The industry immediately needs 100 investment advisers. There should be 300 new investment advisors in six months or one year’s time if the market grows at this rate,” he said.

So far Internet trading has done a great deal in supporting the market but the human touch in trading is very important. Therefore, the required number of young investment advisers is a must that the industry should look into in order to sustain itself.

He said that the standards of investment professionals are improving and it is better than four years ago. Many young CIMA, CIM qualified professionals have joined the industry.

“We are not against liberation of the industry. Since there is a shortage of investment advisers we must first strengthen the existing companies.

The trained investment adviser is a must in the capital market and currently we have seen that they shift from one brokering firm to another. New companies should be introduced slowly after a careful evaluation,” Gurusinghe said.

The Association will encourage a fund management conference in Sri Lanka as a form of bringing together local companies with international professionals. Currently, the Stock Brokers’ Association is working closely to improve the size of the market while increasing the number of investors.