IN FOCUS INSTITUTE OF FINANCIAL PLANNING
Plan to prosper B
The Institute of Financial Planning offers fast-track D
“
solutions for advisers wishing to become planners a
in
FINANCIAL PLANNING IS the ability to led to an increase in productivity of 25%- p
apply the six-stage process and turn the 30%. Many leading firms in the UK are tr
dreams and aspirations of clients into reality, now appreciating the benefit of this devel- m
even if it means managing those dreams and opment of individuals within their teams th
expectations downwards. Financial planning and the programme will shortly be rolled tim
becomes the value proposition that so many out to a number of other interested par- Th
advisers struggle to articulate with clients ties. Opposite are some of the comments us
and can and should be delivered in a profit- that have been received in relation to the w
able way to a range of potential clients. outcomes from having put good advisers th
As businesses build or alter their through the CFP programme. fin
proposition, many talk about offering a Many of those who are reaching the co
service-driven, fee-based advice proposi- level of CFP professional are only starting to an
tion. Many then understand this to be explore financial planning techniques. The
comprehensive financial planning unless skills and development around life planning
they have somehow missed the point which are quite compelling. They also provide a
unfortunately, many still do. The challenge is huge value-added to the client proposition.
then to engage the team and to build, deliver Being able to judge and work with genu-
and articulate the proposition. To provide a ine client needs and fears is a tremendous
genuine financial planning service, firms will skill which leads to a meaningful plan and
need to ask the following: a tremendously strong relationship built on
● Are the creation of strategies involved? trust, empathy and the delivery of something
● Are all relevant aspects of the client’s relevant and unique to the client. Many good
financial situation considered? IFA firms are still not looking objectively at a
● Is the objective to meet specific life goals? client’s complete situation. The opportunities
If the answer to the above is yes and the are boundless.
six-stage process is being followed, then it A comprehensive planner is currently a
is more than likely that great value is being mile away from what is generally regarded
provided to the clients. If so, it should follow as a good RI with AFPC. Financial Plans
that income levels are also on the increase. should all give consideration to the following:
One of the big cultural changes that ● Various cash flow statements;
advisers must buy into is that by extending ● Net worth statement;
their service and taking on more people, ● Tax calculation;
the result is going to be an increase in ● Income and Expenditure statement;
productivity and profitability. A number of ● Various assumptions;
good financial planning businesses have ● Goals/Objectives; and
recently demonstrated that building up ● Recommendations;
the number of Certified Financial Planners The first in the list is probably the most
(CFP) professionals in their business has important because this enables the planner
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INSTITUTE OF FINANCIAL PLANNING IN FOCUS
ADVISERS’ COMMENTS... ANN BRISTOW, FINANCIAL PLANNING DIREC
TOR, GRANT THORNTON
“As a fee-based adviser and with the advent of depolarisation last June,
BARRY HORNER CFP, MANAGING increasingly crucial to ensuring we
we recognised the quality of our training will be
DIRECTOR, PARADIGM NORTON
add value to our clients. With the CFP qualifi cation defining the industry standard,
“All our team are either working towards or have level. Coupled with the invest-
we are encouraging all our advisers to attain this
achieved CFP status as we see this mark as the only training means that clients will
ment in a new IT platform, our focus on technical
internationally recognised professional financial
have improved access to technical expert ise across a diverse range of disciplines,
planning qualification. We offer a three-year articled ry services. The CFP qualifica-
including financial planning, tax and business adviso
training contract to our financial planners, which cul- to review a client’s financial
tion provides our advisers with a sound foundation
minates in them taking the CFP accreditation in year The broader benefits of improved
affairs with an impartial and holistic approach.
three. We have eight CFP professionals at the present are coming through in feedback from
training and internal investment in our people
time and have four working towards the qualification.
clients and profitability of the firm’s financial planning practice”
The CFP mark is a measure of competence and is
used internally to assess our planners’ progress IAN SHIPWAY CFP, INVESTMENT DIRECTOR,
within the practice. We have certainly won work on THINC DESTINI
the back of being one of the most highly qualified “Looking around the world it is clear there are two
financial planning firms in the UK and new clients are successful financial services business models. One is based
comforted by the fact that we display our certificates upon the efficient distribution of product and the other
and they know so many of us are CFP professionals” based upon the supply of professional financial planning
ROW services. In the UK the market has been distorted by the
PETER SPRUNG CFP, CHIEF EXECUTIVE, PARK regulatory imposition of the polarisation regime and this
the Corporate &
“Park Row now supports all its advisers within having been dismantled, financial services businesses
IFP and work towards the
Private Clients division to be members of the are reviewing their operations and gravitating towards
ed this level within
CFP Licence. It is preferable that they have achiev one of these two models – a new form of polarisation
CFP Licence builds on the
three years of them joining the company. The that Thinc Destini was created to benefit from. Within the
up in that it is testin g
technical knowledge that the adviser has built professional services side of the business we encourage
rehensive financial
practi cal application and the ability to provide a comp our practitioners to study for the CFP accreditation in
t that advisers have
planning service where appropriate. This has mean order to provide them with a sound technical and practi-
raised their game and are now regularly dealing with solicitors and cal foundation. We do not think it will be long before
accountants. In the last 12 months, we have seen productivity increase
astute clients are demanding evidence of professional
r development and our
by 25% due to this focused approach to advise competence before engaging an adviser. As the world’s
Row is now corporate
ability to structure our approach to clients. Park leading accreditation and having been developed over
by the Law Society. There
members of STEP and authorised to give CPD
pre-retirement semin ars to a number of years by the world’s foremost practitioners,
is also a deal with Ashridge College to deliver
is a direct result of the CFP licence demonstrates the competence to practise
mana gers and executives of FTSE 250 companies. This
CFP Licence in particular financial planning at the highest standard. Those advisers
our overall attitude to adviser education and the who have qualified as CFP professionals have experienced
UK”
which puts our advisers in the top 1% in the a significant improvement in the quality of their business
and the confidence to develop further.”
to move from guessing at outcomes to be start applying technology and other tools
able to predict and measure outcomes which to become a true Financial Planner. The
has to be one of the most valuable aspects CFP fast track and other focused courses
for a client of a financial planner. and events within the Institute of Financial
This is not the work of a normal adviser Planning should now be on the radar for all
and it takes a deal of training and focus to good advisers.
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