Passion and vision

FAnews met up with Masthead's new Managing Director, Ian Middleton, to discover his vision for the future of the company.

Having worked in various capacities with advisors for 21 years, Ian was part of the team that conceptualised Masthead in 2003 and has been chief operating officer since the company's launch in 2004.

He was recently appointed as the company's Managing Director, following the departure of Peter Dempsey, who had been Managing Director of Masthead since its inception. "Having worked with Peter for over 10 years, I have an enormous amount of respect for him," says Ian. "Peter was with Masthead at an important time and played a key role in establishing the organisation's credibility in the industry. We will miss his experience and counsel on a day-to-day basis; however, there is a possibility that Peter may remain involved in Masthead at a different level."

A new vision

However, Ian is ready to take Masthead into a prosperous future, building on Peter's achievements.

"I am passionate about the benefits of financial planning and independent financial advice. Secondly, I would like to realise a vision – that consumers will prefer advice from brokers who are Masthead members because they know they will receive quality advice from brokers who operate well-run financial planning businesses," says Ian.

"Masthead's mission is to keep brokers in business as independent financial advisers. We will continue with our aim to support brokers, to ensure they stay relevant and in business. This includes assisting our members to manage the challenges of operating in times of change, capitalise on opportunities, embrace trends and thrive.

"Secondly, we aim to increase awareness among consumers that advice has a value and that qualified independent financial advisors should be the source of financial advice."

Experience

Ian was a member of the national council of the Financial Planning Institute of South Africa for 12 years, serving as president from 2000 to 2002. For four years he was involved at an international level with the Financial Planning Standards Board, a US-based non-profit organisation that promotes the profession of financial planning around the world and controls the CFP trademark worldwide. During two of these years he served as director.

He also co-authored a book on retirement and estate planning and has written numerous articles on financial planning. He also serves on the board of trustees of a large retirement fund and acts as a moderator for MBA students.

All this experience, combined with 21 years in the industry, Ian has a very good understanding of the challenges facing independent brokers. "Through Masthead I am well positioned to help the organisation to achieve our vision, which is to support the independent broker," he says.

Why Masthead?

"Masthead is positioned to promote quality professional financial advice, enhance the way brokers do business, and improve the way in which our Product Partners – namely Old Mutual, Sanlam, Liberty Life, Metropolitan and Auto & General – get their offerings to consumers," explains Ian.

"I thoroughly enjoy taking on these challenges because I believe Masthead can achieve significant success in these areas. Masthead has the tools and means to provide a full range of support services countrywide to enable our members to build successful, valuable practices."

Tackling the challenges

"Brokers need to deal with issues such as lack of time, profit margin squeezes and increasing compliance pressures in an environment of increasing regulation, heightened consumer protection and tight economic times," says Ian. "In light of these complexities brokers have to reassess the way in which they do business if they want to stay in business. Our challenge is to assist our members to manage these challenges so they can successfully remain in business for the long term.

"Another challenge is to enhance the level of professionalism of the independent broker's financial advice. This, I believe, will increase consumers' demand for financial advice.

"One of the big challenges facing the industry is to provide products for the previously uninsured, as well as qualified and experienced advisors to serve that market. However, I believe appropriate products are already available. The average consumer in South Africa is underinsured, as is the case in Australia, mainly due to a preference for savings/investment products over risk cover. Consumers unfortunately don't realise how beneficial risk cover is until it is needed most – for example, in times of illness, disability or death. The more pressing challenge facing the financial services industry is to grow, in a cost effective manner, the number of advisors to satisfy consumers' needs for financial products."

Facing the future

Ian says that the changes happening in the South African industry are not unique. "We are following a path of regulation similar to that of the United Kingdom and Australia. Operating in a regulated environment helps to protect consumers, brokers and product providers. It serves to enhance brokers' professionalism and lift the standard of financial services and advice provided. It's inevitable that some financial advisors will leave the industry, however, the future is good for those who view the changes in a positive way and adapt to them.

"With financial markets in a state of turmoil, the need for financial advice is higher than ever. At Masthead we believe that advised consumers are better off than those who are not advised. Our experience shows that the majority of consumers prefer advice from independent brokers. For these reasons, I believe independent financial advisors are well-positioned to serve the needs of consumers."

Taking the lead

Ian says that instead of a single mentor, he has great respect for several people. "I like learning from many sources and especially enjoy taking lessons from real-life situations. There are some significant lessons on teamwork to be learned from books authored by Lance Armstrong (Every Second Counts) and Jon Krakauer (Into Thin Air).

"My philosophy is that people are inherently good. Give them freedom to operate – they are more likely to succeed if they are encouraged to take responsibility and use their entrepreneurial skills. What motivates me is that I can make a difference. I like to see the impact of my actions."

On a personal note

"I am also married to a wonderful lady, Mariana, and we have a 15-year-old daughter. In my spare time I enjoy playing golf, watching sport and reading autobiographies. I also take time out on my Harley-Davidson."