Gareth Stokes, FAnews Online Editor
Chartered Wealth Solutions (Pty) Ltd
There are many ways to promote professionalism in an industry. One is to ensure entrants to the industry receive appropriate education. Another is to create a set of industry standards against which industry competitors can benchmark their businesses. The SA Best Practice of the Year Awards (SAPOTY) affords domestic financial advisory businesses the opportunity to do just that. Already in its third year the competition attracts entries from hundreds of the country’s top financial advisory practices. The competition winner must demonstrate a clear mastery of all aspects of practice management.
The SAPOTY was first contested in 2007 when it attracted 80 financial advisory practices. In 2008 the number of entrants swelled by 50% to 120. Despite a more stringent evaluation approach 130 companies lined up to do battle in 2009. “The consistently increasing calibre of businesses participating in the SA Best Practice of the Year Award tells us independent financial advisory practices are maturing from a practice management perspective,” said Esmé Davies of Celestis Practice Management, the hosts of the award.
Have you got what it takes?
Past winners are full of praise for the competition. Guy de Fleuriot, MD of Adroit Financial Planning Partners believes the competition rewards companies that take practice management seriously. “Whilst the last 12 to 18 months have been very trying for financial advisors anywhere in the world, our participation in SAPOTY has instilled a sense of discipline and focus which forces us to constantly look at our longer term objectives – the ‘big picture’ – and to continue to build a world class practice which will inevitably sustain itself over time and in the face of future adversities,” said de Fleuriot. “This can only be achieved if the foundations have been laid correctly, despite the fact that such foundations come at a cost!” He urged other independent financial advisory practices to take “the time to participate in this initiative, as they will ultimately benefit from the experience.”
What is required to walk off with the laurels as South Africa’s top financial advisory practice? The competition seeks out practices that successfully implement quality business plans and business continuity plans. An important part of the competition is to access the practices’ interaction with clients. Finalists must “show a strong focus on client reviews to ensure consumers remain on track to achieving their long-term financial goals.” The judges also looked at how practices use technology to improve productivity.
The competition takes a tough look at practice succession plans. The succession problem is not unique to South Africa with many ‘owners’ of advisory businesses set to retire in the next decade. A succession plan must identify successors to ensure service delivery to clients on an ongoing basis. Finalists are also assessed on their ability to apportion resources fairly across their client bases. “Everyone deserves good service, but different categories of clients should each enjoy the level of attention they need and pay for, which means prioritising clients who invest more money with a practice,” said Davies.
And the 2009 winner is
The judges had a tough time evaluating the 10 short-listed finalists. Financial advisory practices in contention included:
Who walked away with the laurels in 2009? FAnews Online, media partner for the award, attended the 2009 SAPOTY ceremony at the glamorous The Forum function venue in Bryanston yesterday. Approximately 200 guests applauded loudly as Mr Charles Pillai, FAIS Ombud, introduced and congratulated each of the 10 finalists. And then the big moment arrived.
The winner of the SA Best Practice of the Year Awards 2009 is Chartered Wealth Solutions. “While the winner gets the accolade, all participants in the SA Best Practice of the Year Award gain valuable new insight into their businesses,” says Davies. Practices can benchmark against their peers and gain valuable insight into their business by reviewing their assessment results. Previous winners of the competition include Durban-based Adroit Financial Planning Partners (in 2008) and Execuserv (in 2007).
Editor’s thoughts:
South African financial advisory practices have endured a tough couple of years. A few short years after adjusting their business practices to comply with the numerous provisions of the FAIS Act, advisors had to deal with a local economy in recession. Market values plummeted, severely testing financial advisors and product providers alike. We would like to take this opportunity to extend our heartfelt congratulations to the 10 finalists and to all 130 financial advisory practices that took the time to enter the competition. And well done to Chartered Wealth Solutions, the winner of the SA Best Practice of the Year Awards 2009.
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