A penny advised is a penny earned

It is imperative that one chooses a financial planner who has committed to a set of standards of competency Photo: Pexels.com

It is imperative that one chooses a financial planner who has committed to a set of standards of competency Photo: Pexels.com

Published Oct 9, 2023


Each year, global financial planning professionals come together for World Financial Planning Day to help raise awareness of the value of financial planning and the caveats that come with it.

It is imperative that one chooses a financial planner who has committed to a set of standards of competency and ethics via a professional body like the Financial Planning Institute of Southern Africa (Fpi) and has the regulatory accreditation and ability to be able to put their clients and consumers at large interests first.

The Financial Sector Conduct Authority (FSCA) accredits any provider and any financial adviser. It regularly suspends companies and advisers whose business practices are reckless.

Each financial adviser is listed on this website. Here, you can check what products he or she is authorised to sell.

If a Financial Service Provider (FSP) has been found guilty of any misconduct or dubious business practices, they would not appear on this database.

World Financial Planning day was on October 4, this week, and with consumers feeling the pressure of high inflation, rising interest rates, living costs and the cost of housing, a new study commissioned and launched on that day by the Fpi showed that South Africans who work with Certified Financial Planners (CFPs) have a better quality of life, enjoy more financial confidence and resilience, and are more satisfied with their financial situation.

While 3 in 4 clients of financial planners are highly satisfied with their wealth, compared to 2 in 3 unadvised consumers, the research found that approximately 60% of clients of CFPs feel financially secure, and 90% feel tangibly better off.

The FPSB Value of Financial Planning Research 2023, undertaken by independent research firm MYMAVINS, surveyed over 1 000 advised and unadvised South Africans aged 25 and over.

The study further examined the value of financial planning, measuring the financial and non-financial impact of financial planning across quality of life, financial confidence, financial satisfaction and experienced value while debunking the myths surrounding financial planning and analysing the future of the profession.

“While unadvised South Africans recognise improved financial well-being and peace of mind (56%) and improved financial decision making confidence (55%) as key benefits to seeking financial planning, only 1 in 3 South Africans perceive it as too expensive (36%) and hard to find someone trustworthy (38%),” it said. “However, close to 9 in 10 (87%) clients of CFPs say the value of financial planning outweighs the cost, with almost everyone (94%) advised by financial planners reporting they trust their financial planner to act in the best interests of the client.”

Lelané Bezuidenhout, CEO of the Fpi, said: “Obtaining professional financial advice from a CFP is important as they have specialised knowledge and expertise in various financial planning areas. CFPs create personalised financial plans, helping clients achieve their financial goals, manage risks, optimise tax strategies, and operate with a fiduciary duty to prioritise the client's best interests. The findings of the global and local study show that consumers should entrust their financial planning to a professional, and more specifically, a professional.”

Dante De Gori, CEO of the Financial Planning Standards Board (FPSB), added: “In this current volatile climate, where unexpected events can send shockwaves through the global economy, the role of financial planning in general and of CFPs in particular has become even more critical in empowering consumers to make informed financial decisions and achieve their long-term goals, while enjoying a better quality of life.”

“The findings in this global study illuminate a compelling reality: the immense value that CFP professionals bring in supporting clients’ financial needs amid times of uncertainty, reinforcing the reputation of CFP certification as the global symbol of excellence in financial planning,” De Gori added.