Student Brochure. FPI Student Brochure

Transcription

1 Student Brochure 1

2 Vision Professional financial planning for all. Our Mission The FPI s mission is to advance and promote the pre-eminence and status of financial planning professionals, while at all times acting in the interests of the society (community, constituency) whom the profession serves, by: 1. Improving the quality and accessibility of professional financial planning for all in Southern Africa. 2. Acting as advocate for professional financial planning, building a recognition of the importance and need for such planning by the general public. 3. Providing a framework within which members can achieve qualifications and maintain competence to create greater value for their clients, practices and employers. 4. Ensuring that members maintain the highest ethical standards in the pursuance of their profession. 5. Providing a leadership role within financial services by providing balanced, credible input and commentary to government and the public. 6. Facilitating transformation within the profession. 2

3 Table of Contents Introduction 4 The financial services industry 4 Professionalism in the industry 4 Learning Pathway 6 Career pathway 6 How to become a Professional Financial Planner 6 3

4 Introduction Financial planning is a profession, just like medicine, law, accounting or engineering. As a career, it enables those people with entrepreneurial skills to eventually set up their own businesses. Financial planning is the process of developing strategies to assist clients in managing their financial affairs to meet life goals through the proper management of their finances. Life goals can include buying a home, saving for their child s education or planning for retirement. The process of financial planning involves reviewing all relevant aspects of a client s situation across a large breadth of financial planning activities, including inter-relationships among often conflicting objectives. This enables the professional financial planner to deliver integrated financial solutions that allow clients to take control of their finances to create and protect wealth and financial security for clients in a holistic way. Most consumers do not have the ability to perform their own financial planning and there is a huge need for professional financial advisors and planners to assist the consumers in firstly drafting a financial plan, and secondly executing the plan. We advise school leavers to achieve their suitable Bachelors Degree, gain their experience at an FPI approved mentorship centre and continue with the pathway to CFP professional certification. Once qualified, a wide range of career opportunities exist, not only as professional financial planners but as managers, specialists within the life insurance, banking, asset management and investment sectors as well as other providers of financial planning products in the financial services sector. The financial services industry The financial planning industry can be divided into three main categories, namely representatives, advisors and planners. This is also the typical pathway for people in the industry to develop and promote themselves. This pathway can be illustrated as follows: CFP professional (± 4 000) Advisor (± ) Representative (± ) Approximated 2012 figures Professionalism in the industry The CERTIFIED FINANCIAL PLANNER or CFP professional designation is the pinnacle in the industry and should be the ultimate goal in terms of job progress and promotion. In order to become a CFP professional, the learner has various options available and can obtain a relevant B Degree and then an approved postgraduate qualification. Full time or part time studies are available that allows the student to study whilst building a career and working in the industry. The following table elaborates on the different types of courses and jobs available in each category, but it is a generalisation and the information could also be applicable to other categories depending on individual circumstances. 4

5 Type of job Minimum qualification On-going education Other attributes Articulation options Designations offered by FPI Representative Advisor Planner The role of this job is A financial advisor A financial planner is a practicing to help sell investment addresses the financial professional who identifies client s needs products to the needs of clients by through a comprehensive needs analysis institution s clients. This proposing specific products process, with a holistic view, develop a plan job consists of financial to address those needs. that will assist the client to achieve his/ planning advice and the Financial advisors focus her life goals. The financial planner will sale of financial products. on single needs analysis then implement the plan as the life events Responsibilities will vary and do not necessarily give occur during the life of a client. Progress depending on which holistic and comprehensive is monitored and reviewed on a regular company you work for. financial advice. basis to ensure that any changes to goals and objective are addressed and that any external changes that might affect the plan are considered. Financial planners often specialise in one or more financial planning component like asset management, risk management, estate planning, etc. An NQF Level 5 or 6 qualification in Financial Planning or Wealth Management. Financial representatives need to ensure that they are abreast of ever changing legislation and regulations. An NQF Level qualification may be required to get promoted to advisor. Self-Driven Excellent customer service and sales skills Goal orientated Work under pressure A learner with a NQF Level 5 qualification can gain entry into NQF Level 6 at any registered provider A learner with a NQF Level 6 qualification may gain entry into NQF Level at any registered provider A learner that does not meet the minimum requirement can apply for Recognition of Prior learning at a registered provider. None An NQF Level qualification as listed in the FPI list of approved qualifications. Financial advisors need to ensure that they are abreast of changing legislation and regulations. Changes to the different financial products result in on-going learning. An NQF Level qualification and a professional competency exam are required to become a financial planner. Self-Driven Excellent customer service Good listener Analytical skills Communication skills Goal orientated Work under pressure A learner with a NQF Level qualification may gain entry into NQF Level at any registered provider. A learner that does not meet the minimum requirement can apply for Recognition of Prior learning at a registered provider. Financial Services Advisor TM (FSA TM ) NQF Level qualification in financial planning. Financial planners need to ensure that they are abreast of changing legislation and regulations. Changes to the external environment that might affect their clients financial plans are major aspects in continuous professional development. Changes to the different traditional and non-traditional financial products result in on-going learning. An Advanced Postgraduate Diploma, Masters or Doctoral degree are options for further studies. A qualification specialising in one of the financial planning components is also an option. Self-Driven Excellent people skills Good listener Analytical skills Communication skills Ability to synthesise Goal orientated Work under pressure A learner with a NQF Level qualification can gain entry into NQF Level 9 at any registered provider. A learner that does not meet the minimum requirement can apply for Recognition of Prior Learning (RPL) at a registered provider. CERTIFIED FINANCIAL PLANNER or CFP professional 5

6 Learning Pathway According to the South African Qualifications Authority (SAQA) the learning pathway for learners in Insurance and Investments is: NQF Level 6: Higher certificates or NQF Level 5: national diplomas National NQF Level 4: Further certificate Education and Training certificate NQF Level : Advanced certificates, diplomas and degrees NQF Level : Postgraduate degrees and diplomas Career Pathway There are many career opportunities available for financial planners, and being a CFP professional will assist you to be considered for the more sought after positions. As a CFP professional you will have demonstrated extensive industry experience, have undergone rigorous study and you will maintain high standards through continuous professional development. CFP professionals can be clearly distinguished from the majority of people in the industry in terms of professionalism, expertise and client relations. Careers in financial planning are available in large insurance companies and banks, in small and medium, independent practices. Ultimately one can start your own financial planning practice, creating and protecting wealth for your own clients. In any of these institutions, you will find it rewarding to assist your clients in meeting their life goals. A typical career path for becoming a CFP professional would be: Become a CFP professional Gain promotion to a financial planning or Join a practice in paraplanning role a client service or administrative role Senior or executive financial planner Senior or executive management role at an financial institution How to become a Professional Financial Planner In order to be awarded a professional designation and be accepted as a professional member of the FPI, candidates must meet the certification requirements. They are: Education Experience Examination Ethics In addition, members are required to maintain technical competence and fulfil ethical obligations by renewing their membership annually. Every two years, CFP professionals must complete at least 65 hours of Continuous Professional Development (CPD) to stay current with developments in the financial planning profession. At least five of these hours must be spent on the FPI Code of Ethics and Professional Responsibility and the Financial Planning Practice Standards. 6

7 Step 1 Obtain a relevant approved qualification (Education) Step 2 Obtain the necessary financial planning experience (Experience) Step 3 Successfully complete the FPI Professional Board Exam (Examination) Step 4 Apply to the FPI for membership. Two designations are available Step 5 Ascribe to the FPI Code of Ethics and Professional Responsibility (Ethics) Step 6 Pay the prescribed membership fee Approved Education Providers InstitutionQualification New NQF Level University of the Free State University of Johannesburg University of Stellenbosch Nelson Mandela Metropolitan University Milpark Business School PSG Konsult Academy Further Education and Training (FET) Institutions: (Boland College, College of Cape Town, False Bay College, Northlink College and Cape College and False Bay College) B. luris Financial Planning Law Postgraduate Diploma in Financial Planning B. Com Finance B. Com Honours Financial Planning B. Com Financial Planning Postgraduate Diploma in Financial Planning B. Com Financial Planning Postgraduate Diploma in Financial Planning National Certificate in Wealth Management 5 National Certificate in Financial Planning 6 Postgraduate Diploma in Financial Planning Higher Certificate: Wealth Management 5 Advanced Certificate in Financial Planning 6 National Certificate: Wealth Management 5 The CFP, CERTIFIED FINANCIAL PLANNER and are trademarks owned outside the U.S. by Financial Planning Standards Board Ltd. The FPI is the marks licensing authority for the CFP marks in South Africa through agreement with FPSB. Visit the FPSB website for more information at For more information about membership, please contact the FPI on: Tel: FPI (34) Fax: fpi@fpimail.co.za

8 Financial Planning Institute of Southern Africa Palms Office Court, Block A, Ground Floor Kudu Avenue, Allen s Nek PO Box 6493, Weltevredenpark, 115 Tel: FPI (34) fpi@fpimail.co.za