Every professional is expected to do their duty
David Kop CFP, HOD of Advocacy and Consumer Affairs at the FPI
Every household should have a written financial plan. This is the message that the Financial Planning Institute (FPI) wants to reiterate during National Financial Planning Week, which will run from 2 to 8 October.
During this time, the FPI and affiliated Certified Financial Planners (CFPs) will open their doors to the public and run a number of initiatives to encourage the use of the particular skills that these CFPs possess. Part of this is offering pro-bono work up to the point of drawing up a written financial plan.
A matter of conjecture
National Financial Planning Week was launched at a press briefing at the end of September where a number of members of the FPI, as well as high profile South African professional footballers, spoke about the need to have an established financial plan.
However, the week was launched off the back of figures released by the Association of Savings and Investment South Africa (ASISA) that South Africa’s level of household debt is estimated to be over R1 billion.
With this in mind, and the consistent news that South Africa is not a nation of savers, are initiatives such as National Planning Week and National Savings Month (which is held in July) making the desired impact? Are these initiatives really making a difference?
“If we are completely honest with ourselves, I don’t think these initiatives have the impact we hope that they will have,” said Nigel Willmott CFP, Franchise Principal of Momentum Consult Clearwater. “The success of these initiatives is very fragmented; there needs to be a greater push to make these initiatives household names. Further, these initiatives need to be tools to kick start a greater debate regarding national savings levels.”
Forging ahead
This is by no means a criticism on Willmott’s part, merely an observation. At no stage did he call for the complete abandonment of these initiatives, but rather the galvanisation of them to make them stronger versions of their current forms.
The main aim of these initiatives has traditionally been, and will continue to be, increasing the level of financial education in the country. This is a topic that David Kop CFP, HOD of Advocacy and Consumer Affairs at the FPI, is very passionate about. However, he also feels a bit let down by the current state of affairs.
“We know that financial education and literacy has a low success rate in South Africa. However, that does not mean we should abandon our posts. In fact, National Financial Planning Week is a call for all hands on deck,” said Kop adding that it is a call for industry professionals similar to the call by Lord Horatio Nelson at the Battle of Trafalgar; the FPI expects every professional to do their duty.
“There are success stories in the industry,” Kop reiterated, “we just need to find them, talk about them, and build on them. Changing behaviour does not happen overnight, it is a culmination of years of self-discipline and changing mindset’s. At the end of the day, if we can make an impact on just one or two households, we are making a difference.”
It’s all about trust
All of the above efforts will be in vain if there is no trust in the industry. Again, this is an issue that Kop has discussed in the past pointing out that there is a general lack of trust in the industry.
“People turn towards each other for advice when it comes to financial matters. The most important foundation during these discussions is trust. The people seeking advice need to know that they can trust the person that they are engaging with to give them the best advice possible,” said Kop.
This is where CFP professionals stand out. Because of their designation and their affiliation with the FPI, they are held to higher standards by the association when it comes to engaging with clients. As Kop pointed out, CFPs take an oath that they always need to put their client’s needs ahead of personal gain.
“This is why it is important that National Financial Planning Week is a success and that the public takes advantage of the level of services and engagement that is on offer,” said Kop.
Editor’s Thoughts:
Hopefully National Financial Planning Week will have some impact on the public. This week is also about raising the awareness of the need for financial planning and we must always remember that every little difference we make is important in the grander scheme of things. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected].
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