Rising to the pinnacle of financial advice
A great deal has been written about the need for professionalism in the financial advice space. There are those who believe that the Financial Advisory and Intermediary Services (FAIS) Act with its accompanying Codes of Conduct – together with the oversig
The good news is that product providers are doing their part to raise advice standards. Two years ago Old Mutual established a programme called the Circle of Distinguished Advisers (CoDA) to recognise financial intermediaries of exceptional calibre. In the 2011 inaugural ceremony, held at the One & Only hotel in Cape Town, the insurer welcomed eight advisers to the CoDA fold. This year 13 advisers lined up to receive the prestigious title… FAnews was on hand at the Taj Cape Town, 25 October 2012, to congratulate the recipients.
Measuring your worth
How does a financial adviser measure his or her worth? Aside from the handful of “adviser of the year” awards the traditional yardstick of success has been for an adviser to outsell his or her peers… Over time the volume and value approach to intermediary rankings has made way for holistic appraisals that include interactions with clients and “best practice” administration and compliance processes. As we progress through the 21st Century the brokers at the cutting edge of the industry are those who buy into the consumer-centric approach to financial services provision.
Today’s professional advisers see the people behind the policies and dedicate themselves to providing solutions that make sense… They understand that the real measure of success is in making a difference to peoples’ lives rather than notching up sales. Old Mutual is first in the financial services industry to recognise the shift in the adviser / client relationship. They realise that the adviser of the future must adopt a 360° approach to financial advice, putting the customer first.
The diversified insurer decided to create a set of standards that its financial advisers could aspire to and that financial services consumers could trust implicitly. In 2011 they devised an exclusive internal programme (CoDA) that acknowledges advisers who excel in providing this 360° / holistic advice.
Rising to the top
What does an adviser have to do to “win” CoDA recognition? “You cannot qualify for CoDA through production,” says Raimund Snyders, executive general manager at Old Mutual. “Advisers have to meet a stringent set of criteria. They are audited each year and can lose their membership even if production is of top quality”. The programme is based on quality of advice, world-class financial practices and an undying focus on the customer. There are five stringent criteria that advisers must meet before they qualify for the accolade, including:
· A minimum of three years’ experience as an adviser;
· An overall rating of “Acceptable” in the provider’s annual practice diagnostic assessment;
· A rating of “Optimal” in client review evaluation;
· A Top 100 “Trophy Point” performance; and
· Achieve and maintain the Certified Financial Planner (CFP ®) professional designation
“The one thing that distinguishes CoDA from a typical financial advice arrangement is its recognition of the fast changing environment we trade in,” says Snyders. The provider reports positive feedback from its adviser force subsequent to the 2011 launch of CoDA. There has been keen interest among advisers to obtain the CFP ® qualification, for example.
Attaining premium adviser status
An adviser who meets each of the five criteria qualifies as a CoDA member for a period of 12-months. Members are then reassessed annually to determine whether the “premium adviser” status still applies. At the 2012 CoDA Induction Ceremony 14 advisers (including all eight who qualified in 2011) had the honour of signing the CoDA code of conduct.
FAnews would like to take the opportunity to congratulate the following financial advice professionals: Abey Karam, Bernhard Visser, David Hall, Dieter Schwendinger, Erin Richard Bothwell, Gideon du Plessis, Glen Mukheibir, Jan Loubser, Johan de Villiers, Petri Joubert, Renier de Waal, Tony Hurlbatt and Willie Horn.
“CoDA is about creating a group of advisers that can tackle the future in partnership with Old Mutual,” concludes Snyders. “We support each other in building sustainable practices where customers get value and professionalism is nurtured. We view our CoDA advisers as the frontrunners who build authentic life-changing relationships with their customers by delivering exceptional, regular and on-going advice”.
Editor’s thoughts: Old Mutual’s decision to recognise elite financial planners should be welcomed by all stakeholders in the financial service industry. It raises the level and standard of advice within the provider’s distribution network and further improves the interaction between adviser and consumer… Do you welcome provider-specific initiatives that improve the overall standard of financial advice? Please add your comment or send it to gareth@fanews.co.za
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