FNA key tool for advisers in transition – Liberty Life

Financial needs analysis (FNA) is not only a key aid for consumers, it is also a vital tool for facilitating the intermediary’s transition to the post-FAIS industry landscape in which advisers operate as a client’s knowledge partner.

That’s the view of Liberty Life, one of the industry’s leading trainers and a life office that has formally endorsed the comprehensive planning methodology championed by the Financial Planning Institute (FPI).

Objective financial needs analysis underpins FPI methodology.

Jay Naidoo, divisional director of Liberty Learning, points out: “The intermediary community is in transition and the insurance companies have a duty to facilitate the adjustment.

“There are two principal ways of doing this. Firstly by ensuring that appropriate knowledge is in place and secondly by creating processes that foster professionalism, with the FNA as the key element.”

In Liberty’s view, advisers have already begun the journey to a new marketplace position as the consumer’s knowledge partner and a source of authoritative information on financial matters. This explains Liberty Group’s preoccupation with training and people development.

Says Naidoo: “All new consultants at Liberty have completed three weeks’ training in the planning process while 94.3% of existing consultants have been assisted in achieving the 60 Seta-approved credits required by professional advisers.

“We are confident they have the knowledge necessary to assist the public on a wide range of financial issues.

“Simultaneously, our process – supported by our financial planning software (Blueprint) – creates a platform for objectivity. It not only makes life easier for the adviser, it reinforces professionalism by ensuring real needs are addressed and all recommendations are soundly motivated.”

Liberty Life’s commitment to the FNA as the basis for a socially beneficial relationship with consumers has become a crucial aspect of its own marketplace positioning following the launch of its ‘Get a plan, Get a life’ promotion.

It is Liberty’s largest ever consumer campaign and makes adherence to FPI methodology and the submission of a needs-driven financial plan mandatory for consumers, planners and administrative staff hoping to win prizes in the national draw.

Launch of the campaign was a very public signal that marketing and sales at Liberty go hand in glove with professionalism and consumer-friendly practices that reflect all FAIS requirements.

Naidoo notes: “FAIS makes it clear that full disclosure is required, that a good understanding has to be developed of a client’s current financial position before advice can be given and that Record of Advice suggests solutions that are appropriate to the client’s situation.

“To assist the adviser, it is essential that the process developed by the insurance company fulfil all these obligations and actively flag potential problems; for instance, by highlighting any conflict between the FNA and the Record of Advice.

“The process has to be adviser-friendly by establishing a structure that is FAIS-compliant and by easing the task of appropriate product selection. In addition, it must demonstrate that it is consumer-friendly by addressing real needs and suggesting workable solutions.”

Following due process should not be regarded as a chore, but ‘cruise-control’ for the generation of profitable relationships and repeat business.

“The valuable client is the informed client,” says Naidoo. “An informed client who is impressed by your knowledge and objectivity will stay with you.

“Experience shows that enduring relationships and long-term commitments to suitable products deliver the greatest benefit – for advisers, consumers and the company.”