Financial adviser numbers increase as life offices recruit

The number of registered financial advisers active in the South African life insurance industry increased over the past year as life assurers and corporate advisory firms stepped up their recruitment efforts, introducing approximately 3 800 new intermedia

These were amongst the findings of a recent survey by Astute, the company that integrates data from financial services product providers for use by advisers when undertaking authorised financial planning for their clients.

Biddie Biddulph, Managing Director of Astute commented: “Because of high drop off levels and the constant entry of new recruits, this is a rejuvenating industry where adviser training should be seen as a continuous priority. Some 32% of advisers have five years or more experience, while just over 49% of intermediaries have two year’s or less experience.”

He added that about 50% of the more established and successful agents tied to life assurers and banks tend to become independent, preferring to operate on their own as independent financial advisers (IFAs) or to join an IFA group.

Referring to the survey, Biddulph said: “Most encouraging was that professional financial advisers, who rely on the quality and soundness of the information and services that we provide, rated Astute highly in terms of service levels and our ability to add value to their practices.

“We’ve expanded our offering and can now assimilate information online from companies offering life insurance, disability and investment products. Advisers have been quick to exploit the efficiency benefits of our system as a one-stop provider of financial product information.”

Biddulph added that the continuous migration of financial advisers emphasised the importance of a successful training strategy, which Astute prioritised during 2011. As the Astute Consolidated Client Portfolio (CCP) platform has become an industry standard, it is included in the training curriculum of most new financial advisers entering the industry.

Last year also brought a greater level of professionalism to the role of financial advisers through the Financial Advisory and Intermediary Service (FAIS) Act, and the introduction of regulatory examinations.

Biddulph said this was significant in terms of oversight of the provision of financial advice, adding that Astute played an important role in assisting financial intermediaries meet higher regulatory standards.