Fiduciary industry under the sign of regulation, digitalization and sustainability
At the annual fiduciary conference of the industry association Expertsuisse on May 17, 2022 in Bern, around 150 participants from all over Switzerland highlighted and discussed the most important trends and changes in the industry. The continuing increase in regulation, greater digitalization and the sustainability trend are shaping the development of auditing and consulting firms in Switzerland.
Around 150 participants from the fiduciary sector gathered on Tuesday, May 17, 2022 in the Kursaal Bern for the annual fiduciary conference of Expertsuisse. This professional association has represented and provided impetus to the auditing and business consulting industry since 1925 and supports the profession with a wide range of services (standards, competence transfer, quality assurance).
Regulation - intelligent, rather than a lot
The fiduciary industry stands for services in the areas of auditing, taxes, accounting and business consulting. In the area of auditing, there has been a strong market consolidation as a result of regulation and supervision - from around 3,000 to 2,000 licensed auditing firms since 2016 alone. However, there are interesting growth areas, particularly in the field of SME consulting on financial and business management issues. These are also rooted in the trends of digitalization and sustainability, which can make financial processes more efficient and - by enriching them with non-financial information - also more effective. What is desirable is not a lot or little regulation, but the right regulation: "Smart regulation" also has a positive effect on developments in digitization and sustainability. Self-regulation also has an important role to play, as Daniel Gentsch, Tax Division President of Expertsuisse, mentions: "The Tax Code of Conduct supported by Expertsuisse regulates the interaction between taxpayers, tax advisors and tax authorities. Their trusting and effective cooperation is an important locational advantage of Switzerland." Of course, the implementation of the new company law is also an important topic for the fiduciary profession and its clients.
Digitalization in the fiduciary industry: keeping the customer in focus
Digitization brings with it changes at various levels. For the fiduciary industry, integration, automation, and even disruptive business processes and models are of particular importance. There is great potential in the integration of interfaces between service providers and customers. Even though many number-driven processes have a high potential for automation, auditing and consulting will not be able to do without the human factor in the future. According to Luzia Hafen, member of the executive board of Expertsuisse, it is important to be able to provide new or additional services through targeted interaction with clients, which clients may not yet have recognized as a need, but which promote their successful business development. The job descriptions and the training and further training will have to adapt to the new trends and requirements. Marius Klauser, Director of Expertsuisse, mentions an example: "Expertsuisse's auditing training will take a completely new form from 2023: More digital skills will be taught and this in a more digital way - flexible, effective and forward-looking.
Sustainability - new reporting requirements
The fiduciary industry is a driver in sustainability developments, as sustainability - as a trilogy of economic, social and environmental aspects - is transforming reporting and corporate governance. Among investors, non-financial environmental, social and governance (ESG) factors play a central role in investment decisions. Likewise, expectations are increasing in many quarters to consider sustainability criteria in management activities - from corporate strategy to reporting. At the same time, significant progress has been made in setting explicit standards and criteria for climate and broader sustainability reporting. The next few years are likely to bring about the most significant innovations in corporate accounting and reporting in decades. It is not necessary to wait for regulation, but companies can already be advised and supported in these important developments - sustainable corporate governance is only possible on the basis of financial AND non-financial information, Expertsuisse director Klauser points out. This was also confirmed by multiple board member Michèle Etienne, who in her remarks at the Expertsuisse Fiduciary Conference positioned diversity as a strategic success factor for companies - also with a view to the fiduciary industry: "Sustainably successful fiduciary companies are changing their management and career models."
Source and further information: www.expertsuisse.ch
