FPI Strategic Plan 2015:
The Future of FPI’s Designations
Message from the Executive
The Financial Planning Institute recently launched its new Strategic Plan 2015 which has at
its core the pre-eminence of the CFP® designation as well as positioning FPI to be a bona
fide professional body. In this regard we refer you to the summary of the FPI Strategic
Plan 2015, attached hereto as Annexure “A”.
The FPI’s ambition is that members of the Financial Planning Institute are more
competent; adhere to the highest standards of professionalism and inspire trust and
confidence in the community.
Our challenge is to focus on the future and to do what is required to elevate financial
planning to a universally respected profession.
Following extensive consultation and research, the Board resolved to make some
fundamental changes that are aimed to transform the FPI into a bespoke professional body
as well as increase its value to its members. We are determined to speed up the
transformation of the FPI into a true professional body which is respected regionally,
nationally and globally.
This consultation paper explains the proposed structural changes to membership flowing
from the FPI Strategic Plan 2015 as adopted by the FPI Board of Directors.
These changes are important to the successful re-positioning of the FPI as a pre-eminent
professional body and the CFP mark as a symbol of excellence in financial planning. Whilst
we appreciate that some of these changes may potentially cause some discontent we
assure you that the issues were carefully deliberated and the tough decisions made were
carefully considered.
An important focus area of the new strategy is an increase in the number of competent
and ethical CFP professionals. This increase will in turn be a good measure of how FPI
serves the public interest.
We look forward to engaging with our members, listening intently to what you have to say
and working with you to build and to inspire public trust in our profession.
Yours faithfully
Godfrey Nti
Chief Executive Officer
Anthony Campher, CFP®
Head: Business Development & Membership Services
Your opportunity to comment
This consultation paper explores the provisions of the new strategy concerning the
proposed structural changes in the Institute’s professional designations. Members are
invited to comment on these proposed changes.
Members may comment in the following ways:
Road shows:
We will shortly be embarking on a series of road shows that will provide an opportunity for
consultation sessions between the FPI and members. We have already met with a number
of members and employers and invite you to attend one of the upcoming sessions:
Bloemfontein
23 July 2012
Durban
24 July 2012
Port Elizabeth
25 July 2012
Cape Town
26 July 2012
Johannesburg
30 July 2012
Pretoria
30 July 2012
Klerksdorp
31 July 2012
Additional consultation sessions will be scheduled throughout the country during the
months of August and September 2012.
By contacting us:
Members can send comments and feedback to these proposed changes to:
Email:
Tel:
Fax:
Mail:
[email protected]
011 470 6000
086 636 0288
PO Box 6493 Weltevredenpark, 1715
Summary of proposed changes
The following structural changes to FPI membership are proposed to allow the FPI to more
effectively represent financial planning professionals and their professional interests:
Changes
Change 1
Change 2
Change 3
Description
To create a new membership level, with a minimum entry requirement
of a qualification at NQF level 7. Members at this level will have no
voting rights. The designation for this level will be called, Financial
Services Advisor™, FSA™.
To phase out the RFP™ and AFP™ designations over time as described
below.
To convert the TFP™ designation to a Candidate category of
membership.
Rationale for proposed changes
FPI has led the way in raising professional standards for the South African financial
planning profession since its formation in 1981. Our world class certification standard has
set the benchmark for competence and professionalism, with the CFP mark as the symbol
of excellence.
Despite its successes, it is the view of the Board that the structural changes detailed
below are necessary before the FPI can achieve the vision of positioning financial planning
as a recognised and respected profession.
Mindful that the regulator can only set minimum standards of professionalism, it follows
that for the FPI to lead the way in terms of the highest levels of professionalism in
financial services, the standards of competence and practice set for its members by FPI
needs to be significantly higher than those set by the regulator.
Change 1: To create a new designation, FSA™, Financial Services Advis or™,
with a minimum entry requirement of a N QF level 7 qualification (on the
new NQF levels), FSA board exam, 2 years of experience as well as an
ethics requirement.
Why a new designation?
1.
2.
3.
4.
5.
This new designation will allow the FPI to clearly define financial advice in the
market place as a logical progression to financial planning, giving the FPI the
authority to speak, and be seen to be speaking, for the broader financial services
industry. This will go a long way towards resolving concerns that were raised during
the strategy review process of financial planning (therefore FPI) being seen as
niche/elitist in the broader financial intermediary market.
This new designation will allow for recognition of a more logical career pathway
from advisor to financial planner.
It is aligned with the current international positions. The Financial Planning
Standards Board (FPSB) will soon be implementing a similar designation at the
advisor level for the same reason as in 1 and 2 above. The plan is for the FPI to align
the FSA designation with that of the FPSB’s.
It provides the FPI with an opportunity to re-define its certification standards for
awarding designations to ensure that it stays well above the regulator’s
requirements.
It promotes access to the CFP certification.
Criteria to obtain the FSA designation:
•
•
•
•
•
An appropriate NQF level 7 qualification.1
Two (2) years’ practical financial advice experience
Adhere to FPI’s Code of Ethics and Professional Responsibility
Meet the CPD requirement as set by the Board from time to time
Movement from FSA to CFP level will not be compulsory.2
Effect on other designations:
•
•
•
CFP professional – None (potential to help strengthen the pre-eminence of this
mark)
AFP and RFP – See proposed Change 2 below
TFP – See proposed Change 3 below
Change 2: To phase out the RFP T M and AFP T M Designations over time.
Over a decade ago when FPI introduced the RFP™ and AFP™ designations, the environment
we operated in was much different from what it is today. Historically, very few people in
the industry had an industry related qualification and advisors in the industry were given
until the end of 2009 to achieve a minimum qualification.
A lot of value was attached to these designations. Not only did the RFP exams assist
advisors in meeting the qualification requirement but provided a further opportunity for
advisors to distinguish themselves by being awarded the RFPTM designation. Both
designations were an indication that the holder has met certain competency requirements
and that they were on a pathway to CFP certification. The CFP professional designation
was at that time and still is the most coveted designation in this industry.
In the beginning, the pathway to CFP certification was not easy. Access to the
qualification that led to CFP certification was limited and without meeting the access
requirements one’s options where fairly limited. This was perhaps the reason why many
members never continued with the pathway to CFP certification.
Many AFPTM professionals were awarded the designation through an informal3 recognition
of prior learning (RPL) process. These members did not achieve an approved tertiary
qualification but courses and internal training that they attended were recognised and
they were awarded the AFPTM designation. Subsequently, many AFPTM professionals
completed an approved qualification at NQF level 6, wrote the board exam and were
awarded the designation.
During this period the membership numbers of FPI grew substantially but started to
decline towards the end of 2007. This was one of the reasons why the Board embarked on
the strategic review process during the latter part of 2010.
The result of the strategic research conducted during the strategy review process revealed
the following:


1
There is growing confusion in the market place - it became more difficult to
differentiate between the different designations as most members at the lower
levels focussed on financial advice and not financial planning.
There is growing consumer confusion as to the difference between the three
designations.
Ensure that we stay ahead of FSB’s requirement of a minimum NQF level 5 qualification for licensing of representatives.
The value proposition for the next level should be enough reason to make members want to move to the next level.
3
The RPL process did not lead to an underlying qualification but only a designation.
2

There is a significant decline in the perceived value of membership at the AFPTM and
RFPTM levels resulting from an environment where the most advisors in the industry
meet the minimum requirements set by the regulator and thus eliminating the
distinctiveness of these designations.
The strategy review recognised a need to elevate the CFP mark to pre-eminence. This
proposed change will phase out the RFPTM and AFPTM designations over a period of six (6)
years from 31 December 2012 as more clearly described in the “Timetable for Changes”,
set out below. Please note that we are only referring to the designations, and not the
qualifications underpinning these designations.
Change 3: To convert the TFP™ designation to a Candidate category of
membership.
The purpose of this change is to allow the FPI to monitor the progress of students along
the CFP certification pathway and thereby be in a position to offer greater support to
students.
Timetable for Changes
As from 1 January 2014, the FPI will not accept new applications for TFPTM, RFPTM and
AFPTM certification. Existing members at these levels, as on 31 December 2012, will have
to meet the FSATM or CFP certification requirements in accordance with the deadlines
below:
Designation
TFP™
Timeframe & Requirements
With immediate effect
RFP™ professional
Maximum of Six (6) years to meet
the requirements for FSA or CFP
certification. The six year period
will end on 31 December 2018,
irrespective
of
when
the
designation was awarded.
AFP™ professional
Consequences
Loss of designation, with immediate
conversion
to
Candidate
membership category. Individuals
who have achieved an approved
qualification for certification, but
lack sufficient experience, will also
be converted to Candidate member
category until they meet the
experience requirement.
All
members
who
do
not
immediately
meet
the
requirements for FSATM certification
will retain their RFPTM and AFPTM
designations, subject to annual
recertification, until they meet the
FSATM requirements provided the
requirements are met within the 6
year period.
Those meeting the requirements
have the option to convert to the
FSATM designation on the first
recertification
date
after
implementation of these changes. If
the requirements for the new
designation are not met within
timeframe, those members will be
moved to the Candidate category.
To assist members in meeting the requirements for certification the FPI compiled a
detailed learning progression pathway to FSA and CFP certification. In this regard refer to
Annexure “B”. FPI will also endeavour to negotiate discounted tuition for members with
our education partners. Further FPI will make available discounted board examination
preparation workshops across the country to assist members in preparing for the
respective board examinations.
Conclusion
When the new strategy was first considered it was apparent that it would not be an easy
journey, neither one to be undertaken lightly. We appreciate that this journey involves
difficult decisions and perhaps even unpopular changes, but the reward at the end of the
day would be much greater, the prize will be an endearing and respected financial
planning profession.
FPI Strategic Plan: A Path to 2015
Foreword
As the pre-eminent standards-setting body for competent and ethical financial planners, Financial Planning Institute benefits the public
by creating and upholding rigorous professional standards for the financial planning profession, with the CFP® mark as its symbol of
excellence.
June 2012 marks the culmination of nearly two years of effort devoted to formulating a comprehensive, long-range strategic plan to
provide on-going direction for FPI. This plan ushers in a new era of professionalism in financial services and is designed to move FPI to
pure professional body status. Premised on the pre-eminence of the CERTIFIED FINANCIAL PLANNER® designation, individual financial
planners will be at the centre of its focus, acting in the interest of all South Africans who entrust their financial future to an FPI member.
It’s the start of a journey for us all to rebuild consumer trust in our community and communicate the importance of professional
financial planning that demonstrates how FPI members are the ones who stand up and commit to taking ultimate responsibility for
delivering on the core promise of professional and ethical behaviour, not because they are required to by law, but because of the
higher standard that they have opted to hold themselves to, through association with the FPI.
It requires all FPI members to not only act in the public interest, but to be seen to do so. It also means that as a professional body we
will continue to set higher standards for the financial planning profession and support its growth through awareness campaigns, a
commitment to higher standards and our expectation of our members adhering to a code of ethics and professional responsibility
conduct higher than the minimum standards of professionalism set by regulators and policymakers.
Strategic positioning is best achieved when there is a good understanding of an organisation’s value proposition and capturing its
attributes so they are easily conveyed to and recognised by all its stakeholders.
Like you, the FPI leadership understands the key questions to unlock an organisation’s potential for differentiation: Who are we? What
do we do? Why does it matter? Further, we understand the power of these questions is revealed when your audience answers them
for you. In that spirit, we reached out and have been honoured to hear from many members and other stakeholders throughout the
strategic planning process.
We must acknowledge that our ability to invest time in this effort is borne by our 30 year legacy of quest for excellence in financial
planning and the dedication of our past and current board of directors as well as our staff.
We hope our exhaustive efforts have resulted in a clear path for FPI in the years ahead. However, we recognise the natural ebb and
flow that will occur as the plan’s strategies and tactics are deployed. Our progress will be marked by a constantly changing business
environment and the increasing value of financial planning professionals offering competent and trusted services in the market
place. The Board and staff will re-evaluate the plan regularly in light of emerging trends affecting the financial planning profession
as well as the environment in which it operates. To that end, we will seek an open, on-going dialogue with our members and all other
stakeholders as we strive to achieve the plan’s goals.
Since 1981, FPI has bulldozed pathways for financial planning professionals to establish solid careers in the financial services industry.
Today, with FPI’s re-stated vision of Professional financial planning for all, we look to take the financial planning profession to even
greater heights and to a greater number of South Africans.
A strong FPI and the successful positioning of the CFP mark as the pre-eminent symbol of excellence in financial planning will support
the public’s understanding of the value of financial planning from a CFP professional.
Godfrey Nti
Chief Executive Officer
2
FPI Strategic Plan: A Path to 2015
Vision
Tagline
[What is our goal?]
[Our brand promise]
Professional financial planning for all.
THE PROFESSIONAL STANDARD
Mission
For the past 30 years, the FPI tag line has been: Setting the
Standards”. It’s a brand promise that has served us well and on
which we believe we have delivered for our members.
[How will we achieve it?]
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)Provide 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.
Value proposition
[What’s in it for you?]
However, the enhancement of the FPI vision means that we
are now aiming to build on the significant brand equity that
we have established in the South African financial services
industry over the years and offer our members, and the
financial planning community as a whole, even higher levels of
service, advocacy and partnership.
To demonstrate that FPI is raising the bar in this way, our new
vision is represented by a new brand tagline.
On the surface, this may seem like a very minor adaptation
of the FPI’s brand tagline. However, the inclusion of the word
‘professional’ implies the following very important promises
that the institute is making to its members and South African
consumers.
As the leading independent professional body for financial
planners in southern Africa, the FPI is committed to:
• Leading the development, maintenance and promotion
of standards of professionalism for financial planning.
• Serving the public by ensuring that people who carry the
CFP designation are qualified, competent experienced
and professional.
• Affording financial planners with the CFP designation the
opportunity to differentiate themselves from their peers.
• Ensuring its members maintain the highest professional
and ethical standards.
FPI provides vision, leadership and resources to raise the
professional standards and community standing of its
members.
Core Values
[What do we stand for?]
•
•
•
•
•
•
•
•
Client centricity
Integrity
Objectivity
Fairness
Professionalism
Competence
Confidentiality
Diligence.
3
FPI Strategic Plan: A Path to 2015
Strategic Objectives
Leadership (L)
FPI is the pre-eminent financial planning standards setting body for competent, ethical and professional financial planners. CFP
certification is the standard of excellence for professionalism in financial planning in South Africa and the world over.
(L1) Establish and uphold the premier positioning of the CFP designation.
(L2) Position FPI as the standards setter or thought leader for financial planning with key stakeholders.
(L3) Growth in the number CFP professionals.
(L4) Secure organisational sustainability.
(L5) Protect FPI and associated trademarks or brands.
(L6) Promote transformation in the financial planning industry
(L7) Define and grow the financial planning market space.
Standards Upliftment (S)
Ensure that FPI has established the highest standards of practise for the practise of financial planning and ensure that members and
stakeholders are in full compliance with CFP certification standards.
(S1) Ensure strict adherence to FPI’s Code of Ethics and Professional Responsibility.
(S2) Establish pre-eminent standards of practise for professional financial planners and advisors.
(S3) Uphold world class certification standards.
Recognition and Awareness (R)
Implement a consumer and employer advocacy campaign on the value of the financial planning process and of CFP certification.
(R1) Promote awareness of the benefit of financial planning profession and the CFP mark.
(R2) Position CFP professionals as the financial planners of choice.
(R3) Promote career pathways in financial planning.
(R4) Develop a solid value proposition for employers.
4
FPI Strategic Plan: A Path to 2015
FPI Strategic Plan: Path to 2015
In the last quarter of 2010 the Board of Directors of FPI unanimously agreed to carry out a major strategy review of the institution against
a backdrop of 30 year legacy of excellence in financial planning, declining membership, emergence of serious competition from other
industry players to standard-setting positioning and financial planning being increasingly being erroneously seen as a niche profession
that serves only the wealthy in our society.
Strategy Review Process
The Board retained the services of Perry & Associates Strategy Consultants and other consultants to assist in this endeavour. Since then,
the strategy review process has entailed an environmental scan to measure the value of financial planning to the financial services
industry, awareness of the FPI and its professional designations in the marketplace and the needs, perceptions and preferences of FPI
members and other stakeholders.
Strategic research was conducted via three main avenues:
1.Focus Groups: Strategy review working group made of directors and staff.
2.A number of our corporate partners responded to an electronic survey in 2010. Similar survey was conducted among consumers.
3.Face-to-face interviews with members (selected from all membership levels), corporate partners, regulators and other important
industry players.
The research revealed four major themes:
Theme 1: General lack of understanding of FPI’s mission and value proposition, with some seeing FPI as a trade association whilst
others seeing FPI as a professional body. The former was strongest among the RFP™ and AFP™ certificants whilst the latter
was strongest among CFP professionals.
Theme 2: The quality of the CFP mark is easily recognised and respected by industry insiders. There was however general lack of
awareness among consumers of FPI and its associated professional designations.
Theme 3: Confusion in the marketplace due to difficulties in the industry of being able to differentiate between the many designations
awarded by FPI (RFP, AFP, and CFP mark).
Theme 4: FPI is perceived primarily as a self-centred and elitist association for well-educated white individuals. With the assistance
of Perry & Associates Strategy Consultants, the Board proceeded to map out a long-term strategic plan with clear and
concise goals to address these themes. The process included authoring a vision statement and writing a new mission
statement in support of that vision. It also included authoring of a new tagline – The Professional Standard. In addition, the
board identified three main objectives to help shape the strategies and tactics of the overall plan – Leadership, Standards
Upliftment and Recognition and Awareness.
The Board approved the “FPI Strategic Plan 2015” in December 2011 and tasked the executive to develop a detailed implementation
plan.
Clearly, the past two years has been about the formulation of our strategy. Moving forward FPI will execute the FPI Strategic Plan
2015 with clear purpose and resolve. The 2012 Board of Directors and those that follow will adopt systems to manage initiatives and
maintain dynamic communications with all stakeholders. Simultaneously, FPI will implement devices for strategy learning, including
benchmarking, best practise sharing and change management.
5
FPI Strategic Plan: A Path to 2015
Strategy Implementation Focus Areas
To achieve the strategic objectives outlined above, the FPI has developed four primary strategic thrusts as follows:
Marketing and Communications Strategy
a.Consumer Awareness – pre-eminence of the CFP mark
b.Brand positioning Strategy
c. Website Strategy.
Membership Growth Strategy
a.Re-organisation to categories of membership
b.Introduction of new “products”
c. Consumer awareness and advocacy
d.Student outreach programme
e.Employer outreach programme
f. Membership retention programme.
Advocacy and Thought Leadership Strategy
a.Advocacy strategy
b.Research Initiative
c. Thought leadership initiative.
Pre-eminence on Certification and Professional Body Standards
a.Local benchmarking
b.International benchmarking.
New FPI Logo Designs
FOR FURTHER INFORMATION
If you have questions about the enhanced FPI strategy, or would like to find out more about the way in which it will position the
institute as your valued partner in professional financial planning, send us an email on [email protected]
6
FPI Strategic Plan: A Path to 2015
About the FPI
The Financial Planning Institute of Southern Africa (FPI) is a non-profit professional body formed in 1981 as the Institute of Life and
Pension Advisors (ILPA) to improve levels of professionalism. To ensure that financial planners in South Africa meet international
standards, in 1998 the Financial Planning Institute affiliated with Financial Planning Standards Board Ltd. (FPSB), in the United States
and in April 2000 adopted its new name; Financial Planning Institute of Southern Africa to more accurately reflect its role as the
custodian of competency and ethical standards in South Africa.
Through its global partnership with FPSB along with other 23 countries, the FPI is the only institution in Southern Africa able to offer
the CFP certification. The CFP mark asserts that the financial planning professional has met appropriate competency, ethics and
professional practice standards to provide comprehensive personal financial planning services to clients.
Today the institute is the leading independent professional body for professional financial planners and advisors in South Africa. Many
top financial institutions have adopted the FPI as an independent standards partner and members include both general professionals
and specialists in particular branches of financial planning.
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 FPSB’s website for more
information at www.fpsb.org.
7
FPI Strategic Plan: A Path to 2015
Financial Planning Institute of Southern Africa
Palms Office Court, Block A, Ground Floor
Kudu Avenue, Allen’s Nek
PO Box 6493, Weltevredenpark, 1715
Tel: 086 1000 FPI (374)
E-mail: [email protected]
www.fpi.co.za
Annexure “B”
REQUIRED QUALIFICATION FOR FPI MEMBERSHIP
NQF5 Wealth Management
NQF5 Old (Partial)
NQF6 Financial Planning
NQF5 Old (Full)
CURRENT QUALIFICATION
NQF5 New (Partial)
Complete
outstanding modules
OR
OR
NQF 6
THEN
THEN
THEN
THEN
OR
OR
NQF5 New (Full)
OR
OR
NQF8 Financial Planning Post
Grad (FPI Approved)
NQF7 B Degree (FSB approved)
NQF7 (Other)
NQF7 (Approved Provider/Qualification)
NQF8 (Other)
NQF8 (Approved Qualification)
FPI Board Exam
FPI Board Exam
FPI Board Exam
FPI Board Exam
RFPTM Designation
AFPTM Designation
FSATM Designation
CFP® Professional Designation
1 year experience
2 yrs experience or
1 yr SuS
2 yrs experience or
1 yr SuS
3 yrs experience or
1 yr SuS