After the introduction of the financial assessment requirement as part of FAIM 3.2 in January 2019, we have the pleasure of sharing with you the first report from EY assessing the creditworthiness of FIDI's membership, based on the financial accounts of affiliated companies.
Just to remind you, the purpose of reintroducing the Financial Assessment into FAIM was to demonstrate that FIDI Affiliates are financially sound and trustworthy to do business with. Or in other words: that FIDI Affiliates can pay the bill.
By introducing an annual financial assessment of the company’s liquidity, solvency and profitability, we will be able to not only demonstrate the financial health at time of assessment, but more importantly, we can recognize trends in these ratios over the years.
We now have real data from this first pilot year, assessed by one of the big four in auditing, EY.
The main conclusions are rather positive:
- Over 80% of our FIDI Affiliates have a low risk score
- Solvency scores best in our membership
- FIDI movers, and likely all movers worldwide, are not very profitable; this is our weakest point.
I invite you all to read through the findings, and discover how FIDI's memebrship is doing, what we are good at, where our pain points are and where we should be focusing on from a financial standpoint. This is particularly interesting at this time, when our industry is grappling with the short- and long-term effects of the COVID-19 crisis. A time when change for survival is of prime concern. It is the bottom line that counts.
Jesse van Sas
FIDI Secretary General
Do you have questions about this report or the FAIM Quality Certification programme?