Surviving the stress test to know your business

Addressing a packed audience at the recently held Financial Planning Institute of Southern Africa’s (FPI) annual convention, FPI CEO Godfrey Nti said that we are currently going through tough economic times where clients are frustrated, confused and are looking for guidance.

One of the highlights of the Convention was the naming of the Financial Planner of the Year. Bruce Flemming CFP, who entered the process for a third time, was named the 2016 winner.

Pushing the CFP mark

After entering the competition twice before, Flemming knew that he would be in for a challenging competition where his practice was put under the microscope and was assessed by a panel of judges who were looking for an adviser that epitomises a client centric practice and would be a good brand ambassador for the Certified Financial Planner mark.

“I believe that people who enter the FPI Financial Planner of the Year competition are prepared to stress test their financial planning process and business through a gruelling three rounds, with each round focussing on a different area of your practice. There is nowhere to hide,” says Flemming.

During his tenure as the Financial Planner of the Year, Flemming says that he wants to be an outspoken proponent of the CFP mark in the industry as well as within the public eye.

True value

The value of the adviser in the industry has been put under the spotlight in recent years and has been reinforced during the current economic downturn where clients need to talk to an industry professional who knows how to manage their finances.

“We need to ask how we are preparing ourselves to survive in the future. Financial Planners need to look beyond the numbers to what clients are looking for from them, and then find ways to add value. Planners within the industry are finding ways to offer their services in a cheaper way; clients are embracing technology and are turning to robo-advisers to see what options they have in the industry. A successful financial planner needs to overcome all of these challenges if they want to add true value to client’s lives,” says Flemming.  

Lessons learned

Yolande Botha CFP and Francois Le Roux CFP were the other two finalists in the competition and also had a lot of praise for the process.

“By entering this competition companies are subjected to a rigorous screening of their business processes. Planners need to remember that a good financial planning business is always a work in progress,” says Botha.

“During the competition I have done a lot of reading and research to familiarise myself with all important trends and factors currently impacting financial planning, both locally and globally.  I have come to appreciate the value of financial planners in client’s lives; they do this by following a comprehensive financial planning process.  The likely results of the Retail Distribution Review (RDR) are that, if anything, the focus on adviser value add will just become greater. It is vital that we provide clients with a clear value adding experience, as the experience unlocks value for clients. Because of this, I have a new sense of how important it has become that planners remember this in interactions with clients,” says Le Roux.

Leading the profession

While the value of a financial planner is important, it is up to CFPs to take centre stage to lead the way for financial planners.

The issue of effective leadership was one that was referred to a lot during the conference. Thabo Dloti, Chief Executive of the Liberty Holdings Group, said that planners need to know the reality that they exist within and advise clients appropriately. Planners need to do the basics right and not abandon the game plan; and if this happens, they will be stranded in the middle of open water without a paddle.

“Leadership is about making a client’s vision clear to them. It is no use having a long-term plan when challenges come around and you cannot adapt appropriately. Planners are facing a lot of challenges in the industry, but the higher challenge is how we become more relevant to our clients. What challenges do our clients face today that we need to keep in mind?” asked Dloti.

Editor’s Thoughts:
Superheros are not the characters that Marvel and DC Comics provide us; they are everyday people who make a difference in society through action. The public is in desperate need of guidance if they want to come out of the end of this economic downturn whole; and the role of the financial planner is key in this. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected].

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