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Regulation, Human Capital and Increasing the Level of Transparency in Investment Recommendations

Published online by Cambridge University Press:  01 January 2023

Carol Royal
Carol Royal*
Affiliation:
School of Organisation and Management, University of New South Wales
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Abstract

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Regulatory agencies, the financial community and the investing public need to be aware that more effective investment recommendations and decisions require human capital analysis. It is important to the work of securities analysts, their clients and their industry. Bassi, Lev, Mcmurrer and Sissfield (2001) suggest that non-financial insights, particularly human capital related insights, make up a large proportion of investment decisions. More rigorous qualitative human capital analysis can illuminate the working of an organisation in a way that primary financial data on its own cannot achieve need. A model for outlining the human resource drivers of sustainable human capital is introduced and discussed in response to this need. In essence, an integrated approach is needed for the purpose of making more transparent investment recommendations. In Australia the Regulatory Agency, the Australian Securities and Investment Commission can assist in the adoption of this integrated investment process through the Training of Financial Product Advisors, Licensing Policy Statement 146.

Type
Research Article
Information
The Economic and Labour Relations Review , Volume 15 , Issue 1 , June 2004 , pp. 26 - 50
Copyright
Copyright © The Author(s) 2004

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