Extending financial services to 19 million low income South Africans got enhanced recently with the graduation of 20 black financial planners from the Old Mutual Academy of Financial Planners. This brings to 171 the number of financial planners who have made it through the academy since 2004.
Anthony Petersen, Head of the Old Mutual Academy of Financial Planners, promised that graduates would be used as instruments of education to tackle financial literacy in the previously disadvantaged communities - where the need for financial education is acute.
“Driving the need for this intervention is the nation’s low personal savings rate, over-indebtedness and financial illiteracy,” said Petersen.
According to Petersen, graduates will do financial planning presentations in communities beyond the narrow view that says financial education to low-income individuals should be confined to funeral policies. He said the presentations would cover the following topics: budgeting, planning for retirement and the importance of saving and investing money to grow wealth.
Speaking at the graduation ceremony on 11 July, Paul Hanratty (pictured), Managing Director of Old Mutual (South Africa), said: “These efforts are part of Old Mutual’s economic transformation aim of narrowing the economic divide between South Africa’s parallel economies by being a stimulant for growth using our tools, infrastructure and expertise.”
In a message of encouragement to students, Hanratty said graduates have chosen a challenging but rewarding career. “A long-term mindset is crucial in this field but equally important is the need to put your customers first because they look up to you to manage their financial affairs,” said Hanratty.
Established in 2004, the academy addresses a specific need to bring new black brokers into the market and equip them with the skills necessary to address the financial planning needs of the growing black middle class and provide market access for previously disadvantaged individuals.
Petersen said the academy also offers an opportunity for aspirant black financial planners to gain a foothold in the highly competitive financial services sector.
He disclosed that the academy spends about R150 000 on each trainee and this includes learnership fees, an allowance that graduates are paid during training and operational costs.
“The 12-month learning opportunity is a powerful transformation tool that affords unemployed graduates an opportunity to earn the full 120 Credit, NQF level 5, Wealth Management qualification,” says Petersen.
“With the urgency of Financial Advisory and Intermediary Services Act (FAIS) compliance requiring both brokers and financial planners to have the minimum required 60 credits by September 2008, the academy offers a practical solution to the pressing industry issue of compliance and accreditation,” said Petersen.
“There is a recruitment and placement drive twice a year and established brokers are literally queuing to appoint these graduates,” said Petersen. “All of the 2008 graduates are already fully employed, 15 with within the Old Mutual group and seven with other financial services companies.”
Looking ahead, Omer Abdullah, Academy Director, said Old Mutual aims to graduate 40 per year by 2010. Further to this, in support of existing brokers who may require additional credits or further development, the academy is in the process of developing and procuring accredited training modules.
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