Equipping a workforce
In an economic environment which is becoming increasingly tough on individuals, the role of Certified Financial Planners (CFPs) is becoming immensely important.
On 18 October, CFPs from around the country will descend on Century City in Cape Town to attend the Annual Financial Planning Institute (FPI) Conference where a number of high level presentations will map out the current state of the economy and the future outlook for these important professionals.
Ahead of the conference, Anton Swanepoel CFP, Director of Amity Wealth, will be hosting a pre-convention workshop where topics such as practice management strategies for small but mighty firms and business trends from the UK will be discussed.
FAnews spoke with Swanepoel to discuss the workshop and to get his opinion on the current dynamics that are driving the financial planning industry.
What will the pre-convention workshop focus on? Who is it aimed at?
The pre-convention is aimed at financial services providers and the effective management of their business in the current conditions. At the workshop, we will be focussing on the basics that form part of the essential elements of financial planning. These include:
- Budget planning;
- Managing the real risks facing individuals; and
- Promoting savings.
We have two high level international speakers who will be presenting at the workshop. Deena Katz a CFP from the US, will be presenting on practice management strategies for small but mighty firms, and Phil Billingham, a CFP from the UK, will be presenting on business trends in the UK.
What lessons can local CFPs learn from international CFPs who have just gone through regulatory reform?
The first lesson that we need to learn is that we are not unique. This wave of regulatory reform is global and we need to embrace it. CFPs cannot get sucked in by negativity. Regardless of the changes, there are international professionals who have managed not only to survive, but thrive.
Change does not mean that the industry is no longer relevant. Although change does take effort, change is also the only thing that has ever brought progress. Positive people that look for the opportunities in a changing environment will ultimately succeed.
Are we making any headway in achieving the goals that the FPI wants to achieve?
I believe that CFPs are definitely making headway in the goals that the FPI is trying to achieve. The CFP designation will play an even more important role in financial planning of the future. It has been, and continues to be the benchmark for competence in our profession.
Passing the Board exam sets the standard for knowledge that is required for the financial planning profession.
There have been a lot of rumours that there is a general lack of trust in the industry. Do you agree with this sentiment?
Sadly, our sales-orientated history and a number of failed investment schemes have contributed to this perception.
I can understand the sentiment. However, I believe that the introduction of the Financial Advisory and Intermediary Services Act has played a significant role in enhancing the levels of professionalism. If one considers the number of complaints versus the number of transactions concluded in the industry, less than 1% of transactions end up with the Ombud.
One of the ways to get around it is for journalists to write articles, not only about the FAIS Ombud determinations against advisers, but also about the positive impact financial advisors have had on the lives of consumers. For example, one of our advisers dealt with a widow that had R 3 million to invest just after the unexpected death of her husband, aged 53, based on the efforts of an adviser some years ago. If it was not for that, she would have been in serious financial trouble. Reports like that makes me proud to be associated with the profession.
What is the future role of the CFP in the industry?
The future role for the CFP will become even more important for those who believe that advice should be regarded as a profession and that advice by robo-advisers have its limitations.
Leadership in the current environment firstly, is not being dragged down by the negativities surrounding our country. That in itself requires a strong mindset. We can’t give to clients what we don’t have ourselves.
Then, it takes a strong leader to encourage clients to stay the course in these circumstances. It takes vision and a belief in our country’s opportunities and future. I can say without hesitation that strong and inspirational leadership will make all the difference in our industry at the moment.
Editors Thoughts:
The role of the CFP is important if the country is to realise governments goal of financial inclusion and radical economic transformation. Every CFP has a role to play and attending workshops and conferences to bounce ideas of fellow professionals and learn from the efforts of others can only benefit the industry. Perhaps we are achieving more than government and National Treasury is giving us credit for? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts jonathan@fanews.co.za.
