Waiting for the birth of a new profession
The 2007 Annual Financial Planning Convention got underway at the Sandton Convention Centre on 30 May 2007.
The two day event is organised by the Financial Panning Institute of South Africa (FPI), and is in its thirteenth year. FPI members turned out in their droves, and it certainly appeared that the expected attendance of 1,200 members was met.
Wednesday's programme boasted a mix of local and international speakers, who focussed on the convention's theme of professionalism in the field of financial planning. In today's email we focus on the presentation given by one of the international guest speakers, Elissa Buie.
Buie is Certified Financial Planner (CFP) who has been involved in the financial planning industry in the US since 1983. She is co-founder and director of Yeske Buie, with five offices across the US. Buie is also a past chair of the Financial Planning Association (US) and co-founder of the International Centre for Financial Planners. Her speech was titled: "The professionalisation of the Financial Planning Industry in the USA and what South Africa can learn from this."
An industry in constant flux
The world of the financial planner is constantly changing. According to Buie, when the industry started in the US, financial planners approached their jobs on a largely transactional basis.
As more products became available, financial planners were able to offer more than a single solution. The result was that US financial planners were allowed to be dual registered, opening the way for the financial planning industry to evolve from merely processing transactions to giving advice. "The financial planning profession in the US evolved from a transaction place. You used to be able to be licensed as either an insurance agent or as an investment sales person," said Buie.
The next step, said Buie saw the industry "move into a fee based environment [which] opened up a way to actually create relationships with clients." This focus on relationships is spurred on by the complex nature of the highly regulated financial services market. Buie believes that the financial planning industry in South Africa is at exactly the same place as the US. It is an industry that focuses on establishing relationships with clients, and strives to assist clients with the important process of life planning.
True profession requires a 'sacred trust'
The theme carried by a number of speakers on the first day of the FPI event was that of professionalism. The consensus is that while standards in the financial planning industry have improved significantly over the years, the industry is still far from being able to call itself a profession.
Buie said that the next logical step for the financial planning industry is to strive for the status of profession. This state will be realised, in part, when consumers have been educated to the point where they acknowledge the credibility of the financial planning industry. She does not believe that the industry has earned the right to call itself a profession as yet.
"I think we have a way to go," said Buie
Living by the golden rule
Buie is passionate about the financial planning profession. She believes that "money is the most powerful secular force on the planet." She also believes that the relationship between a financial planner and the client is a form of 'sacred trust'. She stressed that consumers should realise that money has no intrinsic value, but is rather a tool by which clients can realise their dreams and ambitions.
Many of you will have heard the phrase: "Do unto other as you will have others do unto you." The term aims to encourage fair treatment of your fellow man. It is quite a reasonable appeal and makes perfect sense. Buie suggests an amendment to this golden rule, which financial planners would do well to adopt. "Do unto others as they would have you do unto them."
In other words, strive to provide a service that not only you would expect, but that your client expects too.
Editor's thoughts:
The big debate carried on during the first day of the FPI Annual Financial Planning Convention was whether or not the field of financial planning has reached the status of being a profession. The consensus emerging from various presenters was that the industry had not yet reached the 'profession' status but was getting there. Do you think that Financial Planners in South Africa can claim to be 'professionals' in the same light as Chartered Accountants, Engineers, Architects and Doctors? E-mail me at [email protected]
