Putting it back

Old Mutual SA has officially opened the doors to the country's first Academy for Financial Planners, an initiative aimed at training young black graduates wanting to become independent financial planners.

The Academy, located in the Johannesburg suburb of Rosebank, will be headed by Khanda Mkhize, a qualified education administrator who has worked for Old Mutual for much of his career.

"It is going to be hugely rewarding combining my two passions - education and financial services," he said.

Limited intake

The Academy will now commence its first classes, with a second and third intake of students in June and August. Numbers are limited to approximately 20 per intake to ensure that candidates receive "personal and dedicated tuition" says Mkhize.

"The industry has a responsibility to put its resources to work, ensuring that we develop and grow those who advise our clients. FAIS requires that Advisers meet certain "fit and proper" criteria. This Academy goes a long way to embedding that as a minimum standard for the industry," Paul Hanratty, Old Mutual deputy managing director said.

"We want to develop black financial advisors who can serve the many thousands of South Africans who don't already have easy access to wealth creation and protection solutions," Hanratty said.

Need addressed

Recent research has shown that, currently, fewer than 10% of adults have life cover and very few have made adequate provision for their retirement.

The applications from those who wanted to join the Academy were carefully analysed and the final selection made on a range of criteria, foremost of which was the potential to offer a sound, mature approach to financial advice.

"Only graduates who possess a degree or diploma from a higher learning institution and who have at least a year's minimum working experience in any field, have been considered for selection," Mkhize said.

"The primary objective of the Academy is to transform young black candidates into fully fledged financial planners. By the time they graduate, they will have demonstrated the ability to operate successfully in this rewarding career," he added.

Students will work through a series of modules throughout the year-long course before being allowed to begin selling products, which they will do only under supervision until they graduate from the Academy.

Candidates retain their independence although Old Mutual will provide them with an infrastructure to work in until they graduate. Thereafter they will become established in business within the financial services industry - and act as independent advisors.