A PROFESSIONAL IN THE
FINANCIAL SERVICES INDUSTRY
NEW REGULATIONS
The revised regulations are a great!
The FPI has always been committed to the 4 E’s.
Education, Examination, Experience and Ethics.
The new regulations are exactly that. They embrace
formal Education (NQF based), are instituting
Professional Designation Exams (PDE), retaining
Experience and Ethics requirements and now also call for
Continuous Professional Development (CPD)
DEFINITION OF
PROFESSIONAL – 1/5
A professional is a
worker required to
possess a large
body of knowledge
derived from
extensive academic
study (usually
tertiary), with the
training almost
always formalized.
In most cases at
least a first degree is
the benchmark.
Certainly 60 credits
of an NQF 5
qualification is not
enough. We
welcome the move
to a full NQF 5
qualification as a
DEFINITION OF
PROFESSIONAL – 2/5
Professionals are at least to
a degree self-regulating, in
that they control the training
and evaluation processes
that admit new persons to
the field, and in judging
whether the work done by
their members is up to
standard.
The FPI believes this is its
core purpose
There has also been
significant progress globally
as a result of the effort to
establish and self regulate
CFP® professionals
worldwide through a 23
country FPSB Affiliate
network
We see a co-regulation
regime as ideal
DEFINITION OF
PROFESSIONAL – 3/5
Professionals usually
exercise autonomy in the
workplace, and are
expected to utilize their
independent judgement
and professional ethics in
carrying out their
responsibilities. This holds
true even if they are
employees instead of
working on their own.
Just as a doctor can be a
private practitioner or work
for a hospital, so too can a
professional financial
planner. The onus is on
the individual to uphold the
professions standards or
face sanction from the
professional body and
resultant consequences.
DEFINITION OF
PROFESSIONAL – 4/5
Typically a professional
provides a service (in
exchange for payment or
salary), in accordance with
established protocols for
licensing, ethics,
procedures, standards of
service and training /
certification.
There has been some
movement in this area.
The FPI 6 step process
and code of ethics
prescribes full disclosure
on fees and earnings.
Shifting from well
entrenched practices will
take some time. The best
interests of the public need
to be kept top of mind.
DEFINITION OF
PROFESSIONAL – 5/5
A 'true' professional must
be proficient in all criteria
for the field of work they
are practising
professionally in.
The FPSB global
competency standard for a
professional financial
planner has recently been
published. It calls for skills
in Collection, Analysis and
Synthesis across the
spectrum
–
–
–
–
–
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estate planning,
retirement planning,
tax planning,
risk management,
asset management
financial management
A PROFESSIONAL IN THE
FINANCIAL SERVICES INDUSTRY
ISSUES TO BE
ADDRESSED
Achieving a common understanding of what is a
professional financial planner
Making the distinction between those persons that do
product selling and those persons that do financial
planning
Setting up the systems to synergistically implement the
recognition of financial planning professionals as distinct
from other parties in the value chain
Making professional financial planners accessible to all
A PROFESSIONAL IN THE
FINANCIAL SERVICES INDUSTRY
WHAT IS AN
INVESTMENT
PROFESSIONAL?
What do investment
managers do?
•Asset allocation
•Research & selection at instrument level
•Weighting
Who do they do it for?
Fiduciary responsibility
Portfolio
Construction
PROFESSIONAL
EDUCATION
Foundation degree
Further studies
•
•
•
•
•
Chartered Financial Analyst
CA (SA)
CAIA
ASISA Academy
Honours/Masters
ENVIRONMENT
PERSONA
Working within a team
Parameters
Process
Oversight
Ethical underpinning
Mandates
Compliance
Understanding when you
are an insider
Level playing field for all
clients
Global Investment
Performance Standards
Passion
Temperament
Employer institutions are members of ASISA
• Collaborative structures that promote professionalism
• Enforceable code of conduct and ethics
Integrity
Humility