2010 Annual Report
Institute of Southern Africa
SETTING THE STANDARD
1 FPI Annual Report 2011 | Setting the Standard
The Financial Planning Institute (FPI) is regarded as the leading independent
professional body for financial planners in South Africa that ensures South
Africans have access to, and value, competent financial planning.
Professionalism in financial planning rests on competence and ethics. As the
custodian of the profession, the FPI is uncompromising in establishing and
maintaining world class professional financial planning standards, ensuring
that members remain competent and ethical to retain their professional
status. Many top financial institutions regard the FPI as an independent
standards partner and members include both general practitioners and
specialists in particular sectors of financial planning.
The FPI was originally formed in 1981 as the Institute of Life and Pension
Advisors (ILPA) to improve levels of professionalism amongst financial
planners and advisors. To ensure that financial planners in South Africa met
international standards, in 1998, the Financial Planning Institute affiliated with
the CERTIFIED FINANCIAL PLANNER® Board of Standards in the United States
and in April 2000 adopted its new name to more accurately reflect its role as
the custodian of competency and ethical standards. The FPI is recognised
internationally and is a founding affiliate member of the international
Financial Planning Standards Board Ltd (FPSB), along with 23 other affiliate
To be the recognised and respected Professional Body for the Financial
Planning profession in Southern Africa.
The main object and business of the FPI is to advance and promote the
profession of financial planning, to raise the status of professional financial
planners and to protect the public they serve by:
• Providing a framework within which members can achieve the
qualifications and competence to practice as professional financial
• Ensuring that members maintain the highest ethical standards in the
pursuance of their profession.
• Promoting the interest of the members as a whole.
FPI Annual Report 2011 | Setting the Standard 2
Chairperson’s Report 4
Chief Executive Officer’s Report 4
Setting the Standards 5
The World Class Value Proposition
Education Framework 6
Setting the Standards
Authoritative Voice 8
Promoting the Profession
Promoting the Profession 10
World Class Value Proposition 12
The Education Framework
Corporate Social 16
Corporate Social Investment
Corporate Governance 18
Industry Sector Group Reports 20
The Year Ahead
Employee Benefits 21
Estates and Trusts
Industry Sector Group Reports
Health Care 22
Estates and Trusts Planning
Regional Committee Reports 26
Central 25 `
Affiliate Organisations 28
Eastern cape South Africa (BUSA)
Western Capeof South Africa (EthicSA)
Our Memberships Planning Standards Board (FPSB)
Financial Services Board (FSB)
From the RegulatorsSector Education and Training Authority (INSETA)
FAIS Ombud Qualifications Authority (SAQA)
Education Partners 32
INSETA Business School
Nelson Mandela Partners
Our Accredited EducationMetropolitan University
Further Education and Training Institute
University of Johannesburg
University of the School
Milpark Business Free State
Nelson Mandela Metropolitan University
University of Stellenbosch
University of University
Stellenboschthe Western Cape Further Education
University of Johannesburg
and Training Institute
University of the Free State
Industry Bodies 35
Association for Savings and Investment SA (ASISA)
Financial Intermediaries Association (FIA)
South African Savings Institute (SASI)
2010 Headline News 37
2010 Headline News
The FPI Team 39
FPI Annual Report 2010 | Setting the Standard
Today’s financial positively changed the face of financial advice and
intermediary services in South Africa. To promote ethical
planners continue to conduct in the industry, he presented at a number of
live and operate in FPI conventions and regional Continued Professional
increasingly interesting Development (CPD) sessions.
times. One thing we can Financial Planning Standards Board (FPSB)
be sure of is that our Internationally, our contributions to the worldwide
environment will always development of the profession, through our
participation in FPSB events, make us very proud. On 21
be changing. What April 2010, FPSB hosted the first World Financial Planning
remains to be seen is the Summit with the goal of advancing financial planning as
speed at which the change will take place. a distinct profession. FPSB members, financial planning
leaders and invited guests from around the globe
engaged in a global dialogue on how best to support
Although there have been some important
the emergence of financial planning as a recognised
environmental developments over the past few years,
and bona fide profession that puts the interests of
we have not necessarily experienced rapid change. My
sense is that all of that is about to change, but more on
this later. Business Unity South Africa (BUSA)
We remained an active member of BUSA during the
Looking back on 2010, financial planners around the
year to represent the financial planning profession
world have experienced an increased demand for
on issues that may affect the profession, as well as to
professional financial planning services as consumers
contribute on a wide variety of issues facing business.
began assessing the risk of another financial crisis
We were represented at the BUSA Council and on a
occurring in their lifetime. What is noteworthy is that
number of BUSA committees and working groups during
consumers are desperate for professional advice and
the year. Senior FPI volunteers also served on the Social
a financial plan and not necessarily for the immediate
Security and Retirement Reform working group
implementation of that advice. More consumers are
able to separate – and in fact insist on the separation of
– professional financial planning advice and the use of Ethics Institute of South Africa (EthicSA)
financial products. In November 2010, we became a member of EthicSA
as a public declaration of our mutual dedication to a
As a profession we have taken great strides in adapting
vision of building an ethical South Africa. This relationship
to the changing needs of consumers. It remains of the
supports our strategic mission of ethics upliftment in the
utmost importance that we as professional financial
financial planning profession.
planners lead the changes required in our own industry.
Whenever I am given the honour of addressing any
NQF Act and Recognition of Professional Bodies
group of graduates standing on the verge of entering
During the second half of the year, South African
the financial planning profession, I request them to not
Qualifications Authority (SAQA) published for public
only work in this profession of ours but also to work on
comment, a document outlining the policy and criteria
it. I urge those of our members who have never served
for recognising a professional body and registering
on any committee of the FPI to take a turn to do so.
a professional designation for the purposes of the
The development of the profession is reliant on all of us
National Qualifications Framework (NQF) Act of 2008.
contributing our thoughts, ideas and skills.
This followed a consultative process with the professional
Former FAIS Ombud, Mr Charles Pillai body community that started in November 2009
It was with sadness that we said farewell to Mr Charles and is significant as this, for the first time in the South
Pillai, the office’s first Ombud, who passed away on African legislative framework, allows for the formal
Saturday 6 November 2010 from cancer, aged 57. He recognition of professional bodies and their professional
took office as the fourth Pension Funds Adjudicator on 1 designations. Our submission was made, and once this
April 2010. As an avid consumer champion, he brought process is finalised we will be well-positioned to apply for
international recognition to the FAIS Ombud’s office this formal recognition for the FPI and our designations.
through many groundbreaking determinations that
FPI Annual Report 2011 | Setting the Standard 4
Strategy Review In 2011, we as financial planners will need to embrace
During the fourth quarter of 2010 we started work on and play a key role in the development of our
a major review of the FPI’s current strategy to ensure environment. We must work with all our stakeholders to
that we have what we need in place in order to deliver ensure that we support initiatives such as the National
on our mandate. This review centred on our value Treasury’s Safer Financial Sector campaign, which
proposition to our stakeholders, our three professional includes amongst its many critical items under discussion
designations and also our desired role in the broader the Treating Customers Fairly initiative driven by the
financial services industry. We expect this process to be Financial Services Board (FSB).
completed by the second quarter of 2011, at which time
we hope to be in a position to announce a new and
exciting strategy that will take the FPI into the future. We must also work with the various regulators and policy
makers to provide our insights into the development and
Corporate Governance implementation of key legislative changes, such as the
The FPI Board of Directors is committed to ensuring that changes to retirement fund legislation. As a profession,
the organisation is governed appropriately and complies we must also understand how our businesses will change
with all the relevant legislation and principles of good following the implementation of legislation impacting on
corporate governance. The governance processes and the broader business community, such as the Protection
structures of the organisation are regularly reviewed of Personal Information Bill.
to reflect internal developments and to align with best
practices. In accordance with the organisation’s bylaws, I would like to thank Godfrey and the members of the
the following elections were conducted during the year: FPI board, board standing committees, FPI staff and all
volunteers who assisted the FPI in its tasks during 2010.
• Seven Industry Sector Group (ISG) committees I look forward to working with each of our members
during 2011, as all of us contribute to making this
• ISG Director
profession the leading profession serving consumers.
• Two Nationally Elected Directors.
With the introduction of the King III Report on Corporate
Governance and the new Companies Act, the FPI
will take cognisance of the guidance provided by
the report and will incorporate improvements into the
organisation’s governance and management systems,
to the extent that they are practical and relevant to Gerhardt Meyer CFP , ®
the organisation. During the year ahead, the board will Chairperson
also prepare itself for the changes brought about by the
Companies Act 71 of 2008.
Chief Executive Officer’s Report
We can all look back 2010, we met regularly with the leadership of National
Treasury, Financial Services Board (FSB), Council for
at 2010 with pride and Medical Schemes (CMS), South African Qualifications
guarded optimism Authority (SAQA), FAIS Ombud, Association for Savings
about what the future and Investment SA (ASISA), Financial Intermediaries
holds for the South Association (FIA) and corporate partners.
We are finding that these stakeholders are increasingly
African economy receptive to our message. They are impressed by
in general and the the strength of the FPI certification requirements and
financial services understand that the public is served by standards that
industry in particular. involve much more than completion of an educational
programme. They recognise the importance of
high ethical standards that require financial services
My hope is that the silver lining in the recent economic
professionals to put the interests of their clients ahead
downturn will be more engaged to customers
of their own. They also recognise that it is essential
managing their money, and a more responsive
that ethical standards be accompanied by a rigorous
and responsible industry building on principles of
professionalism to deliver solutions that are in the long-
term interest of these customers.
We were represented at these meetings by the FPI
Chairperson, Mr Gerhardt Meyer, FPI Vice Chairperson,
As the premier professional body in the financial services
Mr Solly Keetse, other directors, ISG Chairpersons and
industry, we have long advocated higher professional
myself. We were also grateful to have Noel Maye, CEO
standards. The public is right to demand high standards
of FPSB, join us for some of these meetings.
and excellent service from individuals and companies
to whom they entrust their financial futures. A higher
Delivery of Technical Information
professional standard in the industry is all the more
Our Industry Sector Groups (ISGs) remain central to
important at a time when consumers continue to
our strategy for delivering targeted added value to
face worrying times with job security, meeting bond
members working within specific disciplines, each
payments, retiring with dignity and ensuring that they
providing thought-leadership and targeted support
and their families are properly protected. Financial
to their particular community, while at the same time
planners are in a unique position to prove their mettle
contributing to the overall objectives of the FPI. At the
with these high standards, providing consumers with
end of 2010 we created a new department to enhance
advice of the best quality, reassuring customers and
the work of the ISG committees, which had up to then
allowing them to plan confidently for their financial
been predominantly run by our volunteers.
The FPI Regional committee structure continues to play
During 2010 we put much focus on aligning some of
a key role in our ability to engage with our members on
the policies and procedures that underpin our coveted
the field, especially in the area of channelling member
certification standards to ensure that ours is in line
expectations to the appropriate quarters within the
with our parent organisation, the Financial Planning
institute. Throughout the year I also had the pleasure of
Standards Board (FPSB) and other international best
interacting with many members, which proved to be
invaluable to me in gaining a better understanding of
the challenges they face, as well as their expectations
Voice of the Financial Planning Profession of the FPI. I have also been encouraged during my visits
As an institute that works in the public interest, we are by members’ determination to raise standards and
well positioned to continuously educate policy makers, lead the industry to inspire higher levels of public trust
regulators and other industry leaders on the benefit and confidence. In the coming year I hope to continue
of financial planning and the important benefit that measuring these member expectations against our
our rigorous internationally benchmarked certification current service offering and, where necessary, make
and practice standards provide to the South African informed adjustments to our strategy.
public. As part of this ongoing advocacy campaign in
FPI Annual Report 2011 | Setting the Standard 6
Chief Executive Officer’s Report
Given the economic crisis that we are still recovering • Successfully running over 40 Continued Professional
from, it should come as no surprise to anyone to see Development (CPD) events across the country, plus
the intense focus on regulation of the financial services eight national Refresher Workshops.
industry, as regulators and policy makers in South Africa • Participating in the Citadel Words on Money and South
join their counterparts around the world in an attempt to African Savings Institute (SASI) Teach Children to Save
prevent a similar crisis in the future. I see the shift in the campaigns to promote the profession.
tone of regulation as a massive opportunity for the FPI, its • Running the first ever four-part television series on
members and the companies for which they work. CNBC Africa during Financial Planning Month to
promote financial planning and the profession.
In 2011 and beyond we intend to significantly increase • Welcoming 259 new CFP professionals who joined
our effort in the area of engaging with regulators and the FPI community of over 3,700 professionals in
policy makers as the voice of the profession, since we South Africa, as well as the global community of well
are well positioned to educate and raise awareness over 133,000 CFP professionals practicing in 23 FPSB
of the benefits of financial planning and the important countries worldwide. We also welcomed 22 AFP™ and
benefits that our rigorous certification standards provide 48 RFP™ professionals.
to South African consumers. • Partnering with a number of organisations to
launch the Further Education and Training Institute’s
Articulation Pilot Project in the Western Cape.
Policy discussions tend to be wide-ranging and we
intend to cast a similarly wide net for input and dialogue
Our greatest asset is not necessarily on our balance
as the FPI takes its place in coming debates. The opinions
sheet. Our people are the true value of the FPI, inspiring
and insights of the FPI member community and others
achievement and taking our profession forward. I would
working in the public interest will be a vital factor in
like to thank our Chairperson, Gerhardt Meyer and our
developing our policy positions and priorities. We will
board members for their strong leadership, unwavering
be updating our members on policy development and
support and commitment to raising professional
will be actively seeking their input and thoughts on the
future of regulation in the financial services industry, as
well as on the FPI’s potential role in any new regulatory
I am also indebted to our staff, office bearers and all
environment as we seek to increase access for the South
other volunteer members across the organisation, whose
African public to professional, competent and ethical
hard work and commitment enabled the FPI to set
truly professional standards for our members and future
members. I look forward to working with you all in 2011
and the years to come.
My thanks to our staff and volunteers for helping us
achieve, amongst other things, the following during 2010:
It is an honour to serve as Chief Executive Officer and
I hope that, despite the difficulties our profession and
• Hosting a very successful convention at Emperors
industry must navigate, we will continue to grow from
Palace that was attended by over 900 delegates.
strength to strength to serve the public interest.
• Running another highly credible Financial Planner of
the Year competition, won by Natasja Norval Hart.
• Running three NQF Level 5 examination sessions for
1,968 learners, with an average pass rate of 60%.
Chief Executive Officer
Setting the Standards
Promoting the Profession
As the premier professional body in the It is the objective of the FPI’s Standards Department
to have the concepts of honesty and integrity reclaim
financial services sector with international their meaning throughout its membership base. These
outreach, our certification standards are concepts should be personified in the conduct of all our
constantly benchmarked against the best in members and experienced by each and every client
that approaches a member for financial advice.
There is obviously more to a profession than just passing It is with this in mind that we started the year in
of it. It is a declaration to the public at large that the which we had numerous new initiatives in respect of
advice given by a financial adviser is of the highest enforcement of standards and ethics. At the forefront
quality, is based solely on the needs of the customer, is was the development of the new Code of Ethics and
provided by someone who is not exceeding his or her Professional Responsibility. The new code has a more
level of technical competence, is governed by a code detailed and descriptive approach to ethics and the
of ethics and is subject to consistent monitoring, with application thereof. Its aim is to set the benchmark for
effective discipline applied to those who transgress. the financial services industry and to inspire conduct
from our members that will give our respective
The importance of self regulation cannot be ignored
designations the status of absolute excellence in service
and is a fundamental in ensuring the protection of the
and uncompromising values of professionalism and
public and the provision of safe, competent advice.
integrity. We will provide members with the opportunity
Our long term view is that this would ultimately be the
to comment on the document in 2011 before the new
only way in which the public interest can effectively be
code is implemented.
Our 4’E principle (Education, Examination, Experience
In addition to our certification standards, the right to
and Ethics) as well as Continued Professional
use the FPI professional designation trademarks (RFP™,
Development (CPD) is the foundation of our certification
AFP™ and CFP® professional) is subject to certain
programmes and is aligned to international best
practice. conditions. Misuse of these trademarks constitutes
a breach of our Code of Ethics and Professional
Education and Examination Responsibility as well as being a trademark infringement.
During 2010, we aligned our curriculum framework In 2010 we focused on the protection of these
and competency profile to the international standards trademarks by conducting several random member
developed by Financial Planning Standards Board audits.
(FPSB). We ensured that all accredited education
partners also aligned their curriculums accordingly. Discipline
Further adjustments were done to ensure that all board There was a significant increase in the total number
exams test what financial planners do in daily practice. of cases administered by FPI compared to 2009. The
following cases were dealt with in 2010:
Experience and CPD
New experience and CPD standards were developed Type of case Cases opened Cases concluded
by FPSB for implementation by the 23 affilliate countries. Unauthorised use 6 4
Our implementation date is planned for 2012 once of mark
these documents have been localised. Incorrect use of 19 19
Ethics Disciplinary cases 4 0
The financial services industry has, since the introduction
of the FAIS Act, been faced with numerous regulatory Register of Practising Financial Planners
challenges. Fit and Proper requirements and concepts The maintenance of the public register of practising
such as “honesty” and “integrity” have come to financial planners is core to the FPI operation. As part of
the fore as key elements of compliance, with the our website development, a section will be dedicated
looming danger of a Financial Services Provider (FSP) to the consumer to assist with finding a financial planner
being challenged before the FAIS Ombud by a as well as facilitating the verification of FPI membership.
FPI Annual Report 2011 | Setting the Standard 8
Setting the Standards
Regulatory Exams Industry Communication
The appointment of the FPI as an Examination Body in We held monthly Examination Body project meetings
2009 gave us a unique opportunity to showcase our during the year with the FSB and the other appointed
ability to set standards of competence. This also allowed Examination Bodies. We also met regularly with our
us to bring more than 29 years of core experience corporate partners and members in order to keep all
in managing examinations to the FSB licensing informed of developments with the exams as well the
examinations. delivery methods and preparation for the exams.
We spent a considerable amount of time in 2010
The Year Ahead
dedicated to system development, question bank
• We will continue to promote our certification model
development, the development of processes and
and those who have met the stringent set of criteria to
delivery models as well as setting up the examination
body operations thereby building the necessary
• We will continue to raise the levels of competencies
capacity to assist the industry in meeting the deadlines
across all areas of financial planning amongst our
for these exams.
Trial and Pilot Exams • We will scan our environment on an on-going basis
A number of trials exams took place in 2010 for the level and adjust our business model accordingly which
two exams. These trial exams gave candidates the may result in changes to our certification standards.
opportunity to provide feedback on the question design This requires a shared vision from our members as we
and complexity. We also ran a number of level one pilot must work together in building the profession and
exams for Key Individuals and Representatives which was creating an awareness of financial planning amongst
designed to test IT systems, quality management systems consumers.
and the overall composition of the exams. We offered • We will maintain the good relationships we have
these exams free of charge and pass results were with all our education partners to ensure that the
recognised by the FSB. appropriate standards are maintained.
• We will support employers of financial planners and
We continued developing questions for the level two advisors in their efforts to meet the competency and
exams during 2010 with pilots exams expected during ethics requirements set out by the regulator.
2011.We aim to have all level two exams available • We will continue to engage with the FSB’s Enforcement
towards the end of 2011. Department and the FAIS Ombud’s office to facilitate
an open channel of communication on any relevant
Delivery of Exams
matters of transgression.
The Level one exam RE1 for Key Individuals and RE5 for
• We will continuously enforce our certification standards
Representatives exams went live in the fourth quarter of
and are committed to ensuring that our standards are
2010. We expect the bulk of the delivery to only come
in line with international best practice.
through in 2011. The FPI’s delivery slogan is “any time,
any place and any medium”.
Dedicated to creating and providing an 1,313 CFP professionals in South Africa completed this
survey which was run from August 3 to 31 2010. We will
education framework and career pathways. be publishing a comprehensive report of the results of
When choosing a career in financial planning, a wide the survey in 2011.
range of opportunities exist, not only as professional
financial planners but as managers, specialists within Board Exams
the life insurance, banking, asset management and In 2010, the FPI Board approved a three-year transition
investment industries as well as other providers of plan to ensure that we exercise better control over
financial services products. Those with entrepreneurial all board exams. According to this plan, effective
skills are also able to eventually set up their own businesses. from 2013, all board exams will be developed and
managed in their entirety by the FPI. Upon complete
To support a career in financial planning, we implementation of this plan, candidates will only be
have developed partnerships with accredited allowed to sit for the board exams after they have
education partners to deliver qualifications aligned successfully completed an approved education
to our curriculum and assessment standards. These programme. Board exams will be offered twice a year
qualifications provide access the FPI board exams, and are currently planned for May and October 2013.
which support our three professional designations.
The structure of these exams will also change, in
CFP professional Job Analysis Survey
® accordance with the results of the recent job analysis
The job analysis survey of CFP professionals is designed survey, with the first of these changes being introduced
and developed to benefit the public, the financial in 2011.
planning profession and the FPI by assuring that
individuals who obtain CFP certification have adequate Board Exam Results
levels of knowledge and skill to perform competently in A total number of 649 candidates wrote the CFP board
the field of financial planning. This job analysis survey, exam in 2010. The pass rate was 47%. 62 candidates
which is used to develop test specifications and linked wrote the AFP™ board exam with a 41% pass rate. 1968
to the pass/fail decision for the CFP Certification Candidates wrote the RFP1, RFP2 and RFP3 exams last
Examination, plays a fundamental role in developing year with an overall pass rate of just over 60%.
evidence to support the validity of the CFP Certification
Examination. FETI Project
One of the many transformation initiatives which FPI
undertook in 2010 was the partnering with Further
In 2010 we, in partnership with Financial Planning
Education and Training Institute (FETI), Higher Education
Standards Board (FPSB) and its other affiliates, co-
and Training Institute (HETI), INSETA (Insurance Sector
ordinated the design and development of a job analysis
Education and Training Authority) and the University
survey questionnaire. We also made use of an external
of the Western Cape (UWC) to launch a pilot financial
psychometrician to advise on the questionnaire’s
planning articulation project in five FET colleges in the
development and to analyse the results. The purpose
Western Cape. We are very excited about this project
of the job analysis survey questionnaire was to validate
and hope that in the near future we, in partnership
the CFP certification assessment standards and
with the other stakeholders, will be able to roll out this
provide guidance for the content and format of CFP
certification examinations in the future.
FPI Annual Report 2011 | Setting the Standard 10
The initiative, dubbed FETI/HETI and designed to expand Then with a B. Commerce Honours degree and with
access, offers a “seamless articulation” between FET and three years work experience, learners are able to write
HET Institutes and will increase the number of qualified the CFP board exam at UWC and have access to
professional financial planners working in South Africa by CFP certification.
making it easier and more affordable for students to gain
the right accreditation and qualifications. The pilot programme was funded by INSETA and allows
100 learners at five Western Cape public FET Colleges
In terms of the agreement between the partners, UWC to undertake the NQF level 5 Certificate in Wealth
will now recognise the NQF level 5 Certificate in Wealth Management as the first step on the ladder to gaining a
Management as the first year of a B.Com Degree. The tertiary qualification.
NQF level 5 qualification will therefore become a bridge
to a higher qualification, which learners can obtain Accredited Education Partners
through the UWC. We accredited five FET colleges through the FET Institute
which brings the total number of accredited education
As part of the initiative, FPI accredited the UWC FET partners, who have approved programmes and are able
Institute and the five FET Colleges to offer FPI board to offer access to the FPI professional board exams, to
exams which will give the learners the opportunity to 16. These programmes range from NQF level 5 to NQF
become professional members. These are available level 7/8.
to be written at differing stages, depending on the
applicant’s work experience and qualification. The Year Ahead
• We will build and maintain our relationships with our
Graduates of the NQF level 5 certificate will be allowed
accredited education partners.
to enter the UWC School of Business Finance Advanced
Diploma in Management Studies, a two year course at • We will continue to monitor and assess our learning
NQF level 6 and 7. Graduates will then be able to pursue framework by ensuring that our curriculum, assessment
a B. Commerce Honours Degree. and board exams meet international standards.
• We will investigate opportunities for additional
Having obtained the NQF Level 5 Certificate in Wealth educational institutions to offer our accredited
Management and with one year of working experience, programmes to provide easy access to learners and
learners are allowed to write the RFP™ board exam and promote a career in the financial planning profession.
apply for membership at RFP™ professional level. With
the Advanced Diploma in Management Studies and two
years work experience in the insurance industry, learners
are be able to write the AFP™ board exam at UWC and
then apply for AFP™ professional membership.
Providing regular and effective technical Technical Updates
In 2010, we launched the Quarterly Technical Update.
insight to regulators, policy makers and Some of the main items under discussion were:
Research conducted during the year indicated that • Possible phasing out of Provident Funds
the FPI, in order to maintain its premier standing, should • Retrenchment benefits and tax amendments
regularly and effectively provide technical insight to • Social Security and Retirement Fund Reform
regulators, policy makers and members. FPI members, developments
in particular, have been calling for us to deliver regular, • Trustee Training
easy to read, understandable and implementable • PF 130 and King III and the governance of retirement
communications on changes to legislation and funds.
regulation applicable to their practices.
Estates and Trusts
The FPI, with the support of its technical committees, • Repeal of the Stamp Duty Act
endeavours to be the technical resource hub that • Appellate division case of Kruger v Goss & another
ensures that all outputs of a technical nature are co- (rehabilitative maintenance)
ordinated with expert skill and knowledge at all times. • The ‘portable’ R3.5 million estate deduction in respect
By doing this, we can be recognised as the authoritative of spouses
voice to speak for the financial planning profession. • Reporting of intestate estates (i.e. no will)
• Suicide and wills
We implemented the following technical insight • Drafting wills and remuneration.
communication services during 2010:
• Technical Updates • National Health Insurance (NHI)
• Continued Professional Development (CPD) Events • The new Code of Conduct for prescribed minimum
• Website benefits.
• Journal – The Financial Planner
Technical Committees • The review of the Collective Investment Schemes
The FPI’s Technical Committee is made up of the Control Act, 2001 (CISCA)
chairpersons of the Industry Sector Groups (ISGs) who • Draft Regulation 28 and the prudential limits of pension
contributed their technical expertise in the following fund investments.
areas of financial planning:
Personal Financial Planning
• Employee Benefits • Amendments to the FAIS General Code of Conduct in
• Estates and Trusts terms of Conflict of Interest
• Investments • Business succession planning and practice audits
• Personal Financial Planning Risk
• Risk • Risk Benefit Definitions
• Tax • FPI’s Indemnity Policy for members
• Code of Good Practice for Dread Disease Benefits.
The role of these committees is to take all reasonable
steps to promote the aims and objectives of the FPI and Tax
the financial planning profession by: • Budget 2010
• Provisional Tax and the 80 20 rule
• Staying abreast of developments in the industry. • Registration as a Tax Practitioner
• Arranging for engagement with Government at all • Cross-Border Collective Investment Schemes
levels to influence and take part in consultation about • Turnover Tax
legislation impacting the profession, • Proposals for miscellaneous and technical tax law
• Providing members with feedback in order to keep changes
members abreast of changes. • Exchange Control
• Voluntary Disclosure Programme
• The Taxation Laws Amendment Act (No 7 of 2010) and
the Taxation Laws Second Amendment Bill.
FPI Annual Report 2011 | Setting the Standard 12
The Year Ahead
CPD Events As part of the planning for the Technical Services
We successfully organised over 40 CPD events across the Department, we scheduled various strategy sessions
country with a total attendance of over 2900 delegates. for early 2011 with information sessions planned to
These events included quarterly breakfast and communicate the outcomes of these sessions to
afternoon sessions, mini conventions and eight Refresher members.
Workshops. The Refresher Workshops were the second
highest attended FPI event second to the Annual FPI Some of the activities planned for 2011 include:
• Increasing relationship building with key stakeholders,
namely, the Financial Services Board (FSB), National
New Website Treasury, the South African Revenue Services (SARS)
The website redevelopment was started during the and Council for Medical Schemes (CMS) amongst
second half of the year with changes aimed at others.
improving access of technical information as well as • Investigating and developing a research policy
events, online discussion forums and other important that addresses the technical research needs of the
resources for our stakeholders. members and the financial planning profession.
• Developing and implementing a technical
Journal – The Financial Planner communication strategy on best ways to
We issued our journal every alternate month during 2010, communicate technical information to members,
which was rated as the journal of choice for members obtaining member opinion and input on technical
according to the 2010 member satisfaction survey. matters.
The journal included quality, informative articles and • Developing and implementing a strategy to ensure
included contributions from our members across a wide that the FPI can take informed positions on matters
range of financial planning topics. affecting financial planning and the industry as
Promoting the Profession
Promoting our designations and the financial PR and Media
We actively monitor our media exposure via an online
planning profession to key stakeholders and media monitoring service in order to gauge the
the public at large. exposure we receive in the various print, online and
broadcast media. Over 400 articles were published
The public needs professional advice to guide during the year with reference to the FPI and our
them through the growing complexity, diversity, professional designations, creating a total advertising
miscommunication and uncertainty in financial services value equivalent (AVE) of over R7 million. We also
and more specifically, the setting of personal financial placed various other advertising in print publications to
goals to achieve sound retirement and financial promote the profession and our members.
security though a well structured financial plan based
on sound financial planning principles. To ensure that GIBS Expo and Sci-Bono Finance Week
the consumer is best served, the FPI has the following In July, we participated in the Gordon Institute of
consumer-facing objectives: Business Science (GIBS) Career Expo and the Sci-Bono
Finance Week, which attracted over 3000 grade 9 to
• To create awareness of professional financial planners. grade 12 learners. We interacted with many learners
• To demonstrate that they are experts in their field just and educated them about financial planning as a
like doctors, lawyers and other professionals. profession.
• To communicate that they are learned and qualified
to do financial planning. Financial Planner of the Year
• To create a desire among non FPI-accredited The FPI’s Financial Planner of
financial advisors to become members. the Year was announced at the
Annual Convention Gala Dinner
Although we faced a few challenges to ensure that at Emperors Palace, Kempton
resources were fully available to market our members Park on 26 May 2010. The 2010
and the profession, opportunities were seized to ensure award went to Ms Natasja
maximum awareness of the FPI’s brands by launching Norval Hart CFP®. Finalists in
new initiatives during 2010. the competition were Ms Pat
Blamire and Mr Jan-Carel
Inaugural World Financial Planning Day Botha.
In celebration of the Inaugural World Financial Planning
Day initiated by Financial Planning Standards Board As a financial planning
(FPSB), we ran radio advertisements on three national professional, our Financial
radio stations to promote financial planning to Planner of the Year Award is the
consumers. In addition, FPI leadership attended a World highest accolade a financial
Financial Planning Summit on 21 April 2010 in Taipei, planner can obtain.
hosted by FPSB, the preeminent international standards-
setting organisation for financial planning and owner of The competition was launched in 2000 to honour
the CFP marks outside the United States. and promote excellence in financial planning and
the process of the competition is independent and
Financial Planning Month transparent, with judges ranging from industry experts,
In November, we launched Financial Planning Month, academics and FPI personnel.
a consumer awareness campaign aimed at educating
consumers about the FPI, CFP mark and dealing with a We would like to acknowledge those who entered the
professional financial planner. 2010 competition as a tribute to those financial planners
who are committed to being at the top of their game.
We ran a weekly series during November on CNBC
Africa titled “Secure your Financial Future” with the
shows providing consumers with information about the
financial planning landscape, the financial planning
process, how to choose a financial planner and their
rights and recourse. We also held exhibitions at various
malls in Gauteng to promote the use of professional
financial planners to consumers.
FPI Annual Report 2011 | Setting the Standard 14
Promoting the Profession
Chairman’s Award The Year Ahead
We will continue to market, build and maintain a viable
and sustainable financial planning profession through
various initiatives to the benefit of the consumers we
serve and the nation as a whole.
Award to Ms
We are committed to creating maximum awareness
at the Annual
of the financial planning profession and to improve
communications to all our members and stakeholders. To
Dinner. This award
achieve this, the following initiatives will be undertaken
was introduced to
have made life- • Focussed marketing and communications activities to
long outstanding attract potential members.
contributions • Brand Ambassador Campaigns to raise the FPI’s and
to the financial our members’ profile.
planning profession in the areas of service to society, • Consumer clinics to educate customers about the
academia, training, government, media or any other financial planning profession.
• Advertising campaigns to promote the FPI as the
premier professional body in South Africa.
• Introducing a Media Award to recognise individuals
who have made outstanding contribution to the
media to promote financial planning amongst
consumers, the financial planning professional the FPI
and its marks.
World the Standards
Setting Class Value Proposition
Developing and delivering a differentiated, • Member rates and discounts to attend
world class value proposition to the market,
based on stakeholders needs. Surveys
In June, we ran our annual member satisfaction survey
The FPI’s commitment to our stakeholders is to deliver
which provided us with an in-depth analysis of our
a value proposition built on developing a sustainable
membership. 548 members completed the survey, which
financial planning profession, thereby creating
represented a response rate of 8% of our membership.
confidence in the financial services, promoting
Some of the outcomes were:
professionalism and enhancing consumer awareness.
• 70.5% CFP professionals, 14.8% AFP™ and 14.7% RFP™
Our Member Value Proposition
members responded to the survey.
During 2010, we focussed on providing opportunities
• Their preferred communication methods were monthly
for our members to nurture their knowledge and
newsletters, ad hoc alerts and the website. 65%
professional development in order to stay current in the
indicated we always communicated clearly.
rapidly changing financial planning environment.
• The FPI Journal, The Financial Planner, was the highest
rated at 47% (out of eight publications).
We provided the following valuable benefits to our
• The need for technical information was the highest
rated at 41%.
• 66.4% rated webinars as an important communication
• Regional and Industry Sector Groups (ISGs) focussed
on ensuring that the needs of our members are
• 95.2% of our members value their professional
designation, 81.6% display this on their business cards
• Consumer awareness campaigns to promote the
and 68.3% advise their clients of their professional
benefits of using a professional financial planner.
• Delivery of technical information to keep members
• 91.1% value their FPI membership, with the highest
reasons rated being recognition as a professional.
• Networking opportunities at various events.
• Business solutions through associations with value
chain partners. We also participated in the annual Magnet Young
• Career pathways for those wishing to access the CFP® Professional Survey which was conducted by Magnet
mark through accredited programmes and board Communications, a Stockholm-based company. The
exams. feedback from the analysis delivered was significant as
• Access to potential employers to gain the necessary it provided us with insight of what young professional
financial planning experience as well as career members’ expectations are in terms of employer
development opportunities. preference, their careers and benefit expectations.
• A Code of Conduct and Professional Responsibility
to ensure that the highest standards of ethics are Annual Convention
adhered to. Our 2010 Annual FPI Convention themed Beyond the
Recession was held on 26 and 27 May 2010 at Emperors
International Affiliation Palace. Some of the key speakers included
During 2010 we aligned our local standards to Dr Monde Mnyande, Ahmed Jooma, Mitch Anthony.
international best practice to ensure that our Prof. Walter Geach, David Shapiro and Gary Bailey who
professionals are on par with the best in the world. closed the convention with an inspiring presentation
on leadership and the FIFA 2010 World Cup South
As the only marks licensing authority for the CFP mark in Africa™. We were pleased that even though we
South Africa, through agreement with Financial Planning had experienced a recessionary period, attendance
Standards Board (FPSB), we were able to offer members exceeded 900 delegates.
with the following during 2010:
We ran an exhibition concurrently with the convention
• Facilitation of cross border practices and certification and over 30 companies exhibited and showcased the
for those members wishing to practice outside South Africa. very latest products, services and technology in the
• Access to international research and trends. marketplace.
FPI Annual Report 2011 | Setting the Standard 16
World Class Value Proposition
At the Induction Ceremony, we welcomed over 200 new
CFP professionals. Website
During the second half of 2010, we started working
We are very proud that the Gala Dinner was attended on the development of our new website to improve
by over 600 guests including senior representatives from access to information for our members and the public.
the statutory bodies, industry associations, education We plan to launch the website in early 2011 and part of
partners, media, FPI board members and senior FPI the development includes an online application and
volunteers. At the dinner, in recognition of excellence, renewal process, discussion forums, shopping facility,
we awarded top student prizes for the Post Graduate new event registration system and a section dedicated
Diploma in Financial Planning/B Com Honours in to keeping consumers informed.
Financial Planning and the Advanced Diploma in
Financial Planning amongst other prizes.
The Year Ahead
During 2011, to further enhance our value proposition to
our stakeholders, we plan to:
• Review our communication strategy to ensure that our
communications mechanisms are effective.
• Conduct research to determine the needs of our
stakeholders to develop and implement a compelling
value proposition for all stakeholders.
• Conduct research to establish market segmentation,
trends and characteristics to ensure that our
development of the profession is in line with market
• Continue to develop strategic relationships and
partnerships with value chain partners and key
• Investigate ISO17042 and ISO22222 accreditation.
Discharging our transformation
responsibilities with respect to the Given the huge importance that we place on
implementation of relevant Acts and practices transformation, during 2010 the Board of Directors
that are consistent with good corporate approved the charter creating a Transformation
Committee to serve as the vehicle for discharging our
transformation imperatives. The objectives of the FPI
Transformation Committee are:
All South Africans deserve a dignified and prosperous
life. We know that meeting our transformation
• Develop a shared model and framework for
expectation is not only a morally imperative but also
understanding transformation within FPI.
pragmatic one and aims to realise the country’s full
• Create internal awareness for the implementation of
economic potential. We therefore constantly strive
the transformation strategy.
to align our efforts to the Department of Trade and
• Demonstrate commitment to transformation.
Industry’s (DTI) Code of Good Practice to ensure that we
• Facilitate the effective implementation of our
contribute to a sustainable and equitable society.
• Monitor and evaluate the performance on
transformation and the achievement of set targets.
In 2009 FPI achieved a LEVEL FIVE Broad Based Black
Economic Empowerment (BBBEE) contributor status from
During 2010 the Board of Directors also approved a far
ratings agency BEE Verification Agency CC, following a
reaching Transformation Policy and Implementation
comprehensive audit of FPI’s BBBEE performance.
Framework which sets out FPI’s transformation
objectives, strategy and implementation timelines. The
In 2010, we believe that we made good progress
full document is available on our website or from the
across all our transformation measures. We are eagerly
office on request.
awaiting the results of the 2010 BBBEE verification which
is currently underway.
Corporate Social Investment
Committed to all our employees, the Woman’s Day
We partnered with the Principle Officer’s Association
communities in which we conduct our (POA) and Institute of Retirements Fund (IRF) for their
business, the environment in which we annual Women’s Day events in Johannesburg and, for
operate, the sustainability of the environment, the first time, in Cape Town. The theme of the event in
Johannesburg was Help Seniors and the charity selected
and to the sustainable development of
was the Olievenhoutbosch Retirement Centre.
The Cape Town event was held on 27 August 2010 and
The FPI, through its corporate social investment initiatives the charity selected was Matla A Bana, a project for
finds an integrated “strategic fit” between community children affected by crime.
needs and opportunities to which we can harness our
expertise, and resources, to the benefit of both FPI and
We focus on forming strategic, sound and meaningful
partnerships with the communities, civil society and
government, in dealing with community needs and
problems in an integrated and sustainable way. Focus is
given to areas of strategic importance to FPI and where
maximum and sustainable community development
impact can be achieved.
Teach Children to Save (TCTS)
In August we took part in the South African Savings Donations of food and other items were collected
Institute (SASI) Savings Month: Teach Children to Save for the charities at these events. FPI staff were at the
(TCTS) campaign targeted at grade 4-7 learners. Our event to hand over the items at the Olievenhoutbosch
members were invited to take part in this initiative to Community Centre on 30 August.
provide savings education throughout South Africa and
to promote the importance of a savings culture among Financial Services Board (FSB) Draft National Consumer
our future leaders. Financial Education Strategy
During 2010, we were invited by the FSB to comment on
its draft National Consumer Financial Education Strategy
and also attended a meeting with the FSB, alongside
other industry bodies, in November to discuss the draft
document and plan the way forward. We would like to
thank Prem Govender (SASI Chairperson and FPI board
member), Elizabeth Lwanga Nanziri (CEO of the South
African Savings Institute) as well as the FPI executive staff
who contributed in putting together our response.
The Year Ahead
We will continue to engage industry stakeholders and
Teach Children to Save South Africa (TCTS SA) was support initiatives aimed at the upliftment of all South
adopted as a key event by SASI during the July National Africans. Various internal initiatives are also planned
Savings Month, following the successful pilot launch on for 2011.
25 July 2008. The initiative aimed to take the savings
message to our youths, equipping them with the basic
financial skills to help them become better savers now
and in future.
19 FPI Annual Report 2011 | Setting the Standard
Creating a long term, financially sound and Summary Statement of Comprehensive Income
sustainable organisation with maximum Year ended 31 December 2010
utilisation of resources.
Financial Sustainability Description Rm Rm
In 2010 we focussed on ensuring financial stability, sound Membership 11.20 10.76
reporting and improvement of financial controls. We Board Exams & Courses 3.00 4.04
also grew our strategic cash reserves from R4.91 million Revenue 14.20 14.80
to R5.59 million, a growth of 33% year on year.
We were also pleased that our independent auditors, Operating Surplus 0.25 2.63
Zeelie de Kock, after an audit of our financial
statements, gave FPI an unqualified audit report for the Other Income 1.15 0.90
Expenses 1.80 2.32
Total (Loss)/Surplus (0.39) 1.20
Summary Statement of Financial Position
Year ended 31 December 2010
Our membership dues revenue increased in 2010 by 4%
from 2009. This growth, albeit smaller than we hoped for,
Description Rm Rm was mainly attributable to members finding it difficult to
Non-current Assets 1.16 1.02 retain their membership in a recessionary environment.
Current Assets 8.43 8.75 We also experienced an expected drop in revenue from
Total Assets 9.59 9.77 board exams and courses as the industry was beginning
to redirect its attention, away from obtaining FAIS credits
as a licensing requirement, to the new Regulatory Exams
Equity & Liabilities (RE), which came into effect from 1 January 2010. We
Equity 7.23 7.63 also experienced a decrease in revenue from health
General Reserves 5.00 5.00 care courses.
Retained Surplus 2.32 2.63
The resultant 2010 deficit of R0.39 million can also be
explained by unrealised income from the Examination
Current Liabilities 2.36 2.14
Body operations due to postponement of the launch
Total Equity & Liability 9.59 9.77 date for REs by the FSB. It is important to note however
that this did not result in a loss of cash.
The summary statement of our financial position above In the years to come, we hope to significantly grow
reflects a largely unchanged financial position year our non-membership dues revenue in a bid to reduce
on year. our over-dependence on membership fees. Projected
revenue from our Examination Body operations is an
During 2010, we invested R1.31 million into starting up integral part of this plan.
the FPI’s Examination Body operations. We were able to
do this without the need to draw on our strategic
FPI Annual Report 2011 | Setting the Standard 20
The Year Ahead
Human Resources We also implemented a new performance management
You would not find FPI’s greatest asset on the balance policy which we hope will maximise the productivity
sheet. Our people are the true value of the institute, their of our team whilst being fair to all. The next phase
hard work and dedication inspiring achievement and in this exercise will be the development of a talent
taking the institute to new heights. management system that will hopefully assist us in
identifying, growing and retaining good talent within
During the year we filled some key positions to help the institute.
ensure the smooth running of our operations. Mr Almo
Lubowski, CFP® joined our team as Manager: Technical
Services. Ms Carla Letchman also joined our technical
services department as a Research and Technical
Mr Phillip Kruger and Mrs Tsholofelo Dihutso joined our
team as Manager: Professional Standards and Manager:
Communications and Marketing respectively.
These new additions to our team have been instrumental
in helping us run an effective operation in 2010.
Committed to adherence to the rules, laws All directors, with the exception of the Chief Executive
Officer (CEO), are non-executive directors. This provides
and processes by which the business is the necessary objectivity for the effective functioning of
operated, regulated, and controlled. the Board.
Our corporate governance structures remained largely King III and the new Companies Act
unchanged in 2010. With the King III Code on Corporate Governance
coming into effect in March 2010, we conducted a
New Directors gap analysis to determine what the FPI, already in
During 2010, the members of the institute elected Mr compliance with King II, needed to do to comply with
Ronald King CFP®, Mr Raimund Snyders CFP® and Ms the new code.
Kathryn Franz CFP® to serve as directors of the FPI for a
two-year term. On completion of the gap analysis, the board decided
that, given the many overlaps with the new Companies
Re-Appointed Directors Act which was then in draft form, it would be prudent to
The board also re-appointed Ms Nasrat Edoo Sirkissoon delay FPI’s compliance with King III until such time that
CFP® and Sankie Morata CFP® to the board for a the new Companies Act came into effect in 2011.
further two-year term.
Meet the Board:
Gerhardt Meyer, CFP® Solly Keetse, CFP® Godfrey Nti Nasrat Edoo Sirkissoon, CFP® Kathryn Franz, CFP® Prem Govender, CFP®
Acsis Ltd Advantage Asset CEO Sanlam Acsis Ltd Mosswick Invest Pty Ltd
Chairperson Managers (Pty) Ltd Executive Director Technical Director Appointed Director
Non Executive Vice Chairperson Non Executive Non Executive Non Executive
Artwell Hlengwa, AFP™ Sheshi Kaniki Ronald King, CFP® Sankie Morata, CFP® Raimund Snyders, CFP® Esther Venter, CFP®
Self Employed Momentum PSG Konsult BOE Trust Ltd Old Mutual Milpark Business School
Appointed Director Appointed Director Director Appointed Director Director Regional Director
Non Executive Non Executive Non Executive Non Executive Non Executive Non Executive
FPI Annual Report 2011 | Setting the Standard 22
Industry Sector Group Reports
Industry Sector Group Reports
Chairpersons reflect on Estates and Trusts
The year 2010 was a busy one for
2010 the Estates and Trusts Planning ISG.
Teleconferences between members
were held on a quarterly basis, as well as
Employee Benefits one face-to-face meeting, to ensure that
everyone stays abreast of developments
Legislation in the employee benefits in the sector.
industry continues to change, and as
such, this committee spent a lot of time The committee made presentations at CPD events in Durban,
during 2010 discussing the implications Empangeni, Port Elizabeth and Bloemfontein, wrote articles for
of the various changes and keeping Financial Planner and posted important judgments and articles
track of social security and pension on the FPI website.
fund reform discussions.
Some changes in legislation that took place in 2010 include
Changes to Section 11(w) of the Income Tax Act – together with the following:
the introduction of a new section, Section 23B(4) – effectively
restrict the conditions under which employers can claim a • Section 4A of the Estate Duty Act was amended, affecting the
deduction from their taxable income with regard to the premiums regulations surrounding abatement.
payable for the disability policy of employees.
• The Reform of Customary Law of Succession and Regulation of
Also, the proposals in the 2011 Budget Speech will have a Related Matters Act was introduced.
significant impact on retirement funds and employers going
forward. Although much of the enabling legislation has not • Master’s fees (such as for trusts and estates) are now payable in
been drafted as yet, and there are still discussions with the cash or EFT to the Department of Justice as the use of revenue
regulator about various issues, it is prudent to take cognisance stamps has been discontinued.
of the proposed changes to both the structuring of employee
The committee will continue to monitor developments in the
remuneration and income tax deductions relating to employee
sector in 2011. Important issues in this regard are various court
judgments that probe and even broaden the definition of a
For example, it has been proposed that, as of 1 March 2012, valid last will and testament, as well as litigation concerning the
individuals will be allowed to deduct up to 22.5% of their taxable reconciliation of life insurance beneficiaries with the stipulations
income for contributions to retirement funding, with a maximum of a will.
deduction of R200,000 and a minimum deduction of R12,000. In
Financial planners need to stay abreast of these cases and others
addition, any contribution by employers to retirement funding
concerning the rights and obligations of spouses (as broadly
on behalf of employees, for which the employer claims a tax
defined) and those who merely live together.
deduction, will be taxed in the hands of the employees as a
fringe benefit. However, employees will be able to offset their
fringe benefit tax via the 22.5% taxable deduction. The industry
David Thomson CFP®,
is liaising with authorities to obtain clarity in respect of the
implications of these proposals.
In addition, the Minister confirmed government’s commitment
to the removal of provident funds. The changes proposed in
the Budget Speech will effectively equalise the tax regime of
contributions being paid into the fund, and it is anticipated that
shortly thereafter all funds will be required to pay a maximum
of one-third at retirement, effectively removing provident funds
from the arena.
Jennifer Grefen CFP®,
23 FPI Annual Report 2011 | Setting the Standard
Industry Sector Group Reports
Health Care increase financial planners’ knowledge of investment strategies.
As such we organised a series of educational articles written by
The South African healthcare market Chartered Financial Analyst (CFA) Franco Busetti, author of The
consists of a dual system, with Effective Investor. These will be published in Financial Planner
approximately 16% of the population
and will become part of our educational library on the FPI
enjoying a first-class private healthcare
asset while the rest make use of an
ailing public healthcare system. Busetti has also agreed to present countrywide educational
We support government’s initiatives to investment workshops with Rowan Williams-Short, who is part
provide universal access to quality healthcare to all South African of the team that sets CFA examination questions in the United
citizens, and as financial planners we need to contribute actively States of America. During 2010 we also held two mini-investment
to this goal. Our interaction with the newly appointed Registrar conventions for CPD points that were well received. Our efforts
of Medical Schemes at the end of 2010 was very positive, as a committee to build relationships with other industry bodies,
emphasising the important role that we as financial planners government, educational institutions and the media are ongoing.
Janet Hugo CFP®,
The focus of this committee for 2011 will be to advance and Chairperson
promote the profession of healthcare consulting in order to raise
the status of the professional financial planner and
enhance the experience of the public we serve. We will do this Personal Financial Planning
through education, communication and regular interaction with
the regulator. This committee traditionally dealt
with a variety of topics and discussions
André Jacobs CFP®, that fell outside of the other ‘technical’
Chairperson areas of financial planning, and as such
there was a need to renew the focus of
Investments the committee in order to provide its
members with a clearer mandate and
The investment sector experienced a
direction for the way forward.
particularly complex and challenging
year in 2010 due to the continuing This was successfully achieved in 2010, partly through the
vulnerability of the global financial introduction of the Technical Department and the appointment
system. Growth was slow and patchy, of Almo Lubowski (Technical Manager) and Carla Letchman
and debt levels remained high. This (Technical Research Analyst), who have become the driving force
demanded particular attention from behind keeping committee members focused and active in their
financial planners and advisors in terms respective fields.
of balancing risk and managing investor expectations with regard
to participating in stock market recoveries. Sound investment Besides the regular feedback and collation of relevant
strategies were therefore very important. information, two activities that ranked high on the ISG calendar
in 2010 were the ongoing research and discussions on global
From a legislative perspective, changes to Regulation 28 trends in fee-based financial planning. Another noteworthy
challenged both institutions and investors with regard to the mix activity that saw the involvement of this committee was the four-
of investments in pension funds. A trend is evident on the part of part Secure your financial future series on CNBC Africa that was
the regulators towards increased acceptance of active strategies flighted in November 2010.
or hedge funds in pension and conservative portfolios. In coming
years it will therefore be important to educate our members on Going into 2011, the committee will continue to provide
how to select and manage these investments in the context of a specialist input on non-technical matters (including global trends
client’s long-term investment plan. and legislative changes), as well as practical guidance on the
application of the six-step process of financial planning and the
During 2010, the committee resolved to promote Certified enhancement of the soft skills involved in client engagement.
Financial Planners® of sound investment knowledge and to This will ultimately result in a better consumer experience, the
FPI Annual Report 2011 | Setting the Standard 24
Industry Sector Group Reports
Industry Sector Group Reports
heightened professionalism of the financial planner and more Tax
robust practice management.
The year 2010 was a particularly active
Related to this is the introduction of the FSB’s Treating one in the tax sector. A number of
Customers Fairly (TCF) approach, as well as the potential extensive and far-reaching changes
introduction of ISO standards for financial planning practices were made to tax law and policy,
in South Africa (ISO 22222). These topics are significant in the not least of which are the changes
current business landscape, and therefore the committee will announced during the Budget Speech.
provide input on these issues to the Technical Team for the
broader focus of the FPI Board. These include changes to:
The year ahead will see the committee focusing on providing • The Secondary Tax on Companies (STC) and corporate tax.
content and input that is not only interesting but also useful for • Section 11(w), impacting on buy-and-sell policies, deferred
professionalising members’ own businesses. compensation and employee
Kathryn Franz CFP®,
• Fringe benefits on company vehicles, the travel allowance rate
and travel claims.
• Retrenchment and retirement tax, and severance payments.
• The SARS penalty regime and pay-now-argue later – debt is
The risk sector did not experience many now due immediately even if the taxpayer has been incorrectly
changes in 2010, perhaps in anticipation assessed.
of greater changes that will stem • The medical aid employer contribution, which is now
from the social security reform process. fully taxable.
Although the Inter-Departmental Task • Estate duty and capital gains tax.
Team (IDTT) paper on social security
The changes were complex, and the result is that only professional
reform has not been released as yet,
advisors who are familiar with these changes will be able to give
informal discussions in this regard gave greater insight into the
the best service to their clients. The committee therefore focused
thinking behind social security reform and a national risk pool.
on communicating clearly and regularly with its members in
The Risk committee hopes to make a key contribution when the
order to ensure that they are up to date with the changing
IDTT paper is released since insurance prior to retirement is a
key focus area.
The committee also made a number of representations to
Other developments include the fact that the Association
SARS and the National Treasury in an attempt to confirm the
for Savings & Investment SA (ASISA) began looking at the
implications of the complicated legislative amendments. These
standardisation of policy terms following approaches by the FPI
comments were taken into account, and the result is that the
to the previous Life Offices’ Association of South Africa (LOA).
final promulgated legislation contains the important changes
During 2010, the committee responded to member queries on suggested by the committee.
technical matters, for example the aggregation of insurance
benefits, and identified speakers that could enhance members’ Jerry Botha CFP®,
risk and insurance knowledge. As always, the FPI provided Chairperson
operational, secretarial and planning support to the committee.
Andrew Crawford CFP®,
25 FPI Annual Report 2011 | Setting the Standard
2010 in review Central Region (Free State
and Northern Cape)
The Central Region faced some
challenges in the 2010 financial year.
Gauteng Region Unfortunately the committee had
Gauteng is the biggest region, and in insufficient members, which meant
2010 we held successful monthly that we could not deliver all four
events that were well attended. In planned events in the region.
order to ensure that our members
However, despite these challenges, a very successful two-day CPD
receive quality information, we
session was held. The first day saw an informative investment
organised the following sessions
session followed by a cocktail function where participants were
during the year:
offered the opportunity to network and get to know one another.
The following day started off with a breakfast and a session on
• Regulatory protection for medical scheme beneficiaries. compliance and retirement planning.
• Tax development planning. In October, a number of speakers attended a seminar on how
• Developments in estate planning and the duties of trustees. to apply trust law to estate planning. Some of the committee
members were also involved in the Financial Planner of the
• Investment planning: The art of making the plan work. Year competition.
• The business case for comprehensive financial planning.
Shirly Hyland CFP®,
The biggest highlight during the year was that one of our Chairperson
committee members won the prestigious Financial Planner of the
Year Award. The winner will be travelling to the various regions
in 2011 to inspire other members to enter the competition. KwaZulu-Natal Region
The KwaZulu-Natal Region had a
Yzelle McKane CFP®, strong committee in 2010 in the
Chairperson form of seven elected members, two
co-opted members and one honorary
North Region (Pretoria) member. Many of its members are
also representatives on the Industry
The primary focus of this committee Sector Group (ISG) Committees, and
over the past year was the organisation the committee has a satellite office
of mini-conferences, in conjunction in Empangeni.
with the FPI marketing office. The aim
of the bimonthly committee meetings Some logistical changes were made in 2010, namely that
was to obtain suitable speakers for these committee sessions were changed from monthly to quarterly, and
conferences and to discuss other issues three points were allocated for a three-hour session.
relevant to the region. Several such
mini-conferences were held and were a great success. The committee was honoured to have finance journalist Bruce
Cameron as a speaker at one of its sessions, and the event
The committee received invaluable assistance from the FPI in attracted over 158 members. Members of the committee have
the form of visits and the arrangements of logistics surrounding also written articles for publication and have spoken at other CPD
the events, such as following up with speakers, arranging sessions in South Africa.
accommodation and providing backup in terms of registrations.
In 2011, the committee will continue focusing on increasing
The CPD points gained at the conferences remain very relevant
its membership, lining up knowledgeable speakers and upping
and contribute to the high regard in which the profession is held.
attendance at its quarterly sessions.
Willie Snyman CFP®, Logie Govender CFP®,
FPI Annual Report 2011 | Setting the Standard 26
Regional Reports Regional Reports
Eastern Cape Region Western Cape Region
The Eastern Cape Region has over 300 The Western Cape Region enjoyed its
members and is the smallest region. most successful year ever if measured
In 2010 it held three CPD events, one by the number of members attending
of which was a joint seminar with CPD sessions and their feedback on
the Nelson Mandela Metropolitan the value of such sessions. Attendance
University. The seminar focused on numbers soared to as high as 200 at
economic conditions and financial our quarterly mini-conventions, and
markets, that is, making sense of members’ feedback on the standard of
confusing times. The event was well attended as it provided presentations was excellent.
members with a relevant and informative overview of the
markets. The other two events covered the following topics: The committee focused on delivering top-quality continuous
professional development to FPI members in the region, and
• Key issues impacting members of DC funds. as such four mini-conventions were held that focused on the
• Professionalism and the science of financial planning.
• Investment, with an excellent economic overview provided by
• Estate planning: An update, recent cases and changes to
Prof Brian Kantor.
• Practice management and recent influences on financial
Like the Central Region we had inadequate committee members.
planning, with former Financial Planner of the Year, Alec
However, we managed to successfully support the Eastern Cape
Riddle, inspiring members with his life story and approach to
members in ensuring that they obtain the required CPD points.
Jackie Palframan CFP®, • Employee benefits and the current state of estate planning in
Chairperson South Africa, with the latter topic covered by Judge Dennis
• Recent developments in the health sector and a thought-
provoking presentation by Andrew Bradley on the savings
culture in South Africa.
Members have indicated that the CPD sessions add a lot of
value to their practices and careers, as well as providing a
useful forum for networking with other members in
Esther Venter CFP®,
27 FPI Annual Report 2011 | Setting the Standard
Statements of Support Financial Planning
A Member of
Partners in achieving excellence in financial planning
Financial Planning Standards Board (FPSB) and its 24 member
organisations, including the FPI, have gained a lot of momentum
in our quest to establish financial planning as a distinct, global
Ethics Institute of South Africa profession. Interest in CFP certification – the global symbol of
excellence for financial planning – continues to be strong, with
Building an ethically responsible society
the total number of CFP professionals reaching nearly 134,000
worldwide at the end of 2010.
In South Africa, the FPI now boasts the seventh-largest
population of CFP professionals, with a number standing at
more than 3,700. FPSB congratulates the FPI on its leadership in
the global financial planning community and for its continued
The FPI joined the Ethics Institute support for setting global financial planning standards that place
of South Africa (EthicSA) as a the interests of consumers first.
corporate member in 2010. Through
Focused on the future
its membership contribution, the FPI
FPSB’s strategic planning efforts for the future of the financial
supports EthicSA in fulfilling its vision
planning profession kicked off in 2010 with the World Financial
of “building an ethically responsible
Planning Summit, held in Chinese Taipei. The summit
brought together regulators, academics, financial services
EthicSA plays a thought leadership firm representatives, members of the consumer media and
role in South Africa and the rest representatives from FPSB’s member organisations – including
of the African continent. It also provides ethics training and the FPI – to challenge FPSB’s thinking and help shape our
consultation services to private and public-sector organisations strategy.
and to professional associations.
As an organisational member of EthicSA, the FPI has committed
• EthicSA’s mission of building an ethically responsible society.
• Operating according to the highest ethical standards.
• Creating an ethical work environment.
• Encouraging responsible business conduct in the FPI, its sector
of the economy and Africa as a whole.
Prof GJ (Deon) Rossouw,
Chief Executive Officer of the Ethics Institute of South Africa
FPI Annual Report 2011 | Setting the Standard 28
Guidance on implementing global standards
South Africa’s CFP professional community also played a leading
role in developing guidance for implementing FPSB’s global
standards. Former FPI director Wessel Oosthuizen, CFP, led
five expert panels and working groups to create tools, content,
templates and guidance documents to support FPSB member
organisations in their implementation of the standards that
have been adopted since 2008. Marius Botha, CFP, Nasrat Edoo
Sirkissoon, CFP, Shirly Hyland, LL.M, CFP, Esther Venter, CFP,
and Jackie Palframan, CFP, participated as members of the
working groups and panels.
Building for the future
As FPSB looks to the future, we have a clear vision of what we
need to do to ensure that consumers can identify and access the
services of competent, ethical financial planners. We also have a
The recommendations made by summit participants helped fuel
plan to get there, thanks to the support of organisations like the
FPSB 2025, a far-reaching plan for how FPSB can achieve global
FPI and its membership.
recognition for financial planning as a distinct profession.
We look forward to continuing our momentum in 2011 through
FPSB 2025 reinforced our commitment to working cooperatively
engaged dialogue with FPSB members such as the FPI and
with key global stakeholders – including regulators, financial
the community of CFP professionals in South Africa, and to
services institutions, consumer groups and educators – to reach
keeping the needs of consumers front and centre in our strategic
discussions, our certification programmes and our global financial
Oversight and regulation planning standards.
As a member of FPSB’s Regulation Advisory Panel, FPI
Chairperson Gerhardt Meyer joined representatives from FPSB
Chief Executive Officer of the Financial Planning Standards Board
member organisations around the world to contribute to FPSB’s
global position paper, Regulation and Oversight of the Financial
FPSB is a nonprofit organisation that sets global professional standards for financial
Planning Profession. The paper articulated those elements of planning. FPSB owns the CFP, Certified Financial Planner® and CFP® logo trademarks
financial planning that lend themselves to regulation and oversight outside the United States of America. The FPI is the marks licensing authority for the
CFP® marks in South Africa, through an agreement with the FPSB.
as an activity separate from other forms of financial services,
particularly product-based advice. In the paper, FPSB supported
professional bodies working closely with regulators to oversee the
financial planning profession.
Understanding the profession
The FPI was one of 10 FPSB members to conduct a job analysis in
2010, using a template questionnaire based on FPSB’s Financial
Planner Competency Profile. The resulting data provided a
platform for the FPI to create CFP certification examination
specifications for South Africa, and for FPSB to create a global set
of examination specifications for CFP certification globally. The
job analysis also contributed to a greater understanding of the
practice of financial planning in South Africa and around
29 FPI Annual Report 2011 | Setting the Standard
From the Regulators
Statements of Support Financial Services Board
I was humbled by my appointment as the
Ombud on 1 March 2010 and thankful
for the confidence shown in me by the
Minister of Finance. During my three The FPI has for many years been recognised as an important cog
years as Deputy Ombud, I was involved in the role that it plays in the South African financial services
in many of the decisions that set the tone industry.
and direction of the institution that is
already firmly established within the financial services sector. I Its internationally recognised CFP® accreditation and other
am thankful for having a formidable team of professionals in our educational initiatives are increasingly been sought by
office who are committed to the cause of protecting consumers professionals in the industry which goal gels with one of the main
and strengthening the integrity of the financial services industry. objectives of the Financial Advisory and Intermediary Services
During November 2010, I was invited to take part in FPI’s
Financial Planning Month campaign as a panel member for a The FSB is proud to be associated with the FPI and values not only
CNBC Africa special four part television series titled Securing the ongoing interaction with the Institute but also the role played
your Financial Future sponsored by the FPI. The show was by the members in striving towards greater investor protection in
dedicated to informing consumers about their rights and the a continuously changing environment to the ultimate benefit of
recourse available to them. We encourage this and other initiatives the South African financial services consumer.
of this nature as we believe that a lot more needs to be done to
raise awareness amongst consumers about the services and the
complaints mechanism available to them. We believe that the Executive Officer Financial Services Board
annual increase in the number of complaints lodged at our office is
largely due to increased consumer awareness which has developed
over time. In the short time that the office has been in existence,
it is our view that we have only scratched the surface. Many South
Africans are still unaware of the existence of the FAIS Ombud.
In so far as setting standards and encouraging compliance with
the law, this office will support the FPI initiatives. In this regard we
look forward to working with the FPI.
Noluntu Bam CFP®,
FPI Annual Report 2011 | Setting the Standard 30
Insurance Sector Education and South African Qualifications Authority
Training Authority Supporting world-leading development
One of INSETA’s core values is
“partner to enable others”. INSETA
is very proud of its association with
The South African Qualifications Authority (SAQA) understands
Financial Planning Institute (FPI) and
the NQF as a framework for communication, collaboration and
includes supporting the FPI in its role
coordination across education, training, development and work
of professional development in the
Financial Services Sector.
• Integrates learning and career pathways.
A ground breaking project that INSETA
is partnering with the FPI on is the Further Education and • Ensures quality.
Training (FET) Higher Education and Training (HET) articulation
project whereby learners completing the level 5 Wealth • Facilitates access, progression, articulation and redress.
Management Diploma will be able to progress to second year
• Contributes to a better life for all.
B. Comm. at the University of the Western Cape. The Colleges
in this project are Western Cape based. The Financial Planning This can only be achieved with the support of all NQF
Institute was the initiator of this project and in partnership with stakeholders, partners and role players.
INSETA is a nationally replicable model and will contribute
greatly to the transformation of the FET environment. I am pleased to say that the FPI has been exemplary in its
commitment to SAQA and the NQF through its leadership,
The FPI has always been supportive of INSETA and is represented which continues through its present CEO, Godfrey Nti. Not only
on INSETA’s advisory Committees. In addition Mr Godfrey Nti, has it ensured that FPI financial planner learning pathways are
the Chief Executive Officer of FPI also serves on INSETA’s Audit NQF-aligned and integrated across further and higher education
Committee. and training levels, but it has also made a significant contribution
to SAQA through its past CEO, John Arnesen, as a SAQA Board
We look forward to strengthening our future relationship and to
member and now Project Director: NQF Advocacy.
make meaningful contribution to the sector that we both serve.
The NQF Act, which was introduced in 2008 to further enhance
Sandra Dunn, the NQF (which was originally established in terms of the SAQA
Chief Executive Officer INSETA
Act of 1995), now provides for the recognition of professional
bodies and the registration of professional designations within
the NQF. The FPI has proactively supported this world-leading
We look forward to receiving the FPI’s application early in 2012
for its recognition as a professional body and the registration of
its professional designations on the NQF.
Chief Executive Officer of the South African Qualifications
31 FPI Annual Report 2011 | Setting the Standard
Statements of Support Nelson Mandela Metropolitan University
Milpark Business School
Commitment and contribution to the upliftment of financial
In the midst of an eventful year for
financial planners, it is the people
committed to making a difference
Milpark Business School is proud to
be associated with the FPI as one of its who will become beacons in our industry. Consumers want
preferred education partners. financial planners they can trust, who are competent and ethical
While most people would not hesitate practitioners. Financial planners want an environment in which
to contract experts for everyday tasks their work is valued, respected and rewarded, and they wish for
such as fixing geysers or drafting plans financial planning to be recognised as a distinct profession.
for building alterations, few people in
South Africa realise the importance of The FPI has been instrumental in bringing about a new
consulting a financial planner for help environment for financial planning in which both the consumer
with managing their financial affairs. and financial planner will benefit. At the Nelson Mandela
This situation is the result of some unscrupulous product pushers Metropolitan University (NMMU) we are proud to be associated
who operated in the pre-FAIS era, but is also because many
with the FPI as strategic partners in delivering undergraduate and
people think that they have their financial matters under control
if they belong to a pension fund and own a life policy. postgraduate financial planning qualifications that will assist the
FPI in developing financial planning into a profession.
Financial planning is about so much more. It is about enabling
you to reach your goals. Whether those goals entail enjoying a In supporting the growing academic environment and the
carefree retirement, providing a good education for your children development of high-level financial planning practitioners, the
or saving for a deposit on a new car, they are your life goals and
FPI is making a difference to the perception of the financial
are thus important enough to warrant expert advice. A qualified
financial planner will conduct a proper needs analysis for you, planning industry, and is assisting the public to recognise the
based on your goals. value of good advice.
We often read news stories of collapsing pyramid schemes and
other fraudulent activities where investors lose their life savings. Jackie Palframan CFP®,
Invariably the investor’s response is: “But I trusted my financial Head of Financial Planning Programmes at the Nelson Mandela
planner!” The big question for many is where to find a trusted Metropolitan University
With its rich history and international affiliations, the FPI
provides South Africans looking for financial planning assistance
with the peace of mind that comes from dealing with a Certified
Financial Planner®. A CFP® professional is competent, has the
necessary experience and is held accountable in ways that exceed
the minimum legislative requirements.
Milpark Business School remains committed to providing
quality education to the current and prospective members of
the FPI across all levels. We commend the FPI on its exceptional
commitment and contribution to the upliftment of financial
planning standards in South Africa over the past year. We are
proud to be associated with the FPI and pledge our continued
support to the institute in its future endeavours.
Julian van der Westhuizen,
Chief Executive Officer of Milpark Business School
FPI Annual Report 2011 | Setting the Standard 32
University of Johannesburg University of the Free State
Encouraging ethical and professional behaviour Longstanding education relationship
The FPI (previously known as the
ILPA) has been committed to high
standards of skills, abilities and
knowledge since its inception in the
early 1980s. For the past 30 years, the
At the University of Johannesburg FPI has been the only organisation
(UJ) we are committed to delivering in the financial services industry in
employable students to the corporate Southern Africa that is committed to
world. It is vital that students who professional financial planners. The
choose financial planning as a career FPI underlined this commitment by becoming a member of the
understand the importance of ethical Financial Planning Standards Board (FPSB) in 1999, and it is still
behaviour as well as of establishing a member to this day.
themselves as individuals worthy of
their clients’ trust. FPSB is a global nonprofit association that, through its members,
manages, develops and operates certification, education and
The FPI’s drive towards instilling financial planning as a related programmes for financial planning organisations. This
profession has created an awareness in consumers that they have enables them to benefit and protect the global community by
a right to demand professional and ethical behaviour from their establishing, upholding and promoting worldwide professional
financial advisors. This will go a long way in ridding the industry standards in financial planning.
of some of the unwanted elements that have tarnished its
reputation. At UJ, we are proud to be associated with the FPI as a The University of the Free State’s support for the FPI is reflected
strategic partner. in its longstanding relationship of 25 years with the institute
– first as the quality assurers of the FPI’s Board Examination
With the support of the FPI it is easy to develop a culture of
(professional examination) for almost 15 years, and then as
professionalism among the financial advisors of the future that
the first education provider to be accepted and approved to
will serve the public.
deliver a recognised financial planning qualification that allows
Carl Anschutz CFP®, FPI members to assume the most prestigious status as a CFP®
Programme Manager of the Honours BCom (Financial Planning) professional. In addition, for five years the university was the only
at the University of Johannesburg provider of this qualification.
The University of the Free State, through its Centre for Financial
Planning Law, certainly values the relationship and association
with the FPI as one of the recognised and approved universities
delivering financial planning education in terms of FPI and FPSB
Wessel Oosthuizen CFP®,
Director at the University of the Free State’s Centre for Financial
33 FPI Annual Report 2011 | Setting the Standard
Our Accredited Education Partners
University of Stellenbosch University of the Western Cape Further
Smoothing the way for professional integration Education and Training Institute
Coherent articulation pathways in financial
Since the inception of the
Postgraduate Diploma in Financial
Planning at the University of
Stellenbosch (US), the FPI has been
instrumental in ensuring a solid base
for the programme.
The University of the Western Cape Further Education and
After extensive discussions with the Training Institute (UWC FETI) would like to thank the FPI
FPI, collaboration with the Centre of for its unstinting support during 2010. The FPI’s guidance and
Law at the University of the Free State, contribution has directly assisted in the FET College provisioning
and many hours of planning and preparation, the programme was of financial planning curricula at a higher education level.
launched in February 2005. This was celebrated with a welcoming
The FPI’s work with the university and UWC FETI has enabled us
function that was attended by various stakeholders, including the
to develop a coherent articulation pathway in financial planning
President of the FPI.
qualifications, from NQF Level 5 in FET Colleges through to the
Frequent visits and input from the FPI, including visits by its Advanced Diploma in Management Studies at NQF Level 6 at
international executive officers, kept the US on the forefront the university’s School of Business and Finance. The credibility
of CFP® certification and smoothed the way for graduates to and recognition of the FPI as a professional quality assurance
integrate into the professional ranks of the FPI. body for the financial planning industry has been critical to the
development of this articulation pathway.
Over the past six years, the Department of Business
Management, in partnership with the FPI, has continued to offer UWC FETI’s partnership with the FPI has enabled it to
students formal postgraduate studies, affording them global CFP contribute to the integration of education and training at a
accreditation, and successful US candidates are awarded their national level. Through the piloting of a professional qualification
CFP certificates during an annual FPI/US Induction Ceremony. at higher education level, UWC FETI is able to demonstrate
The US is very proud of the consistently high pass mark that its that professional workplace training can be integrated with
students have achieved in the annual CFP examination. disciplinary knowledge qualifications through the involvement of
Department of Higher Education and Training sectoral bodies,
The US regards the FPI as the local custodian of the international namely FET Colleges, higher education institutions and the
CFP mark and will continue to strive towards maintaining the Insurance Sector Education and Training Authority (INSETA).
international standards of quality and verification for the financial
planning profession. We look forward to consolidating this partnership with the FPI
in 2011 through the development of a nationally replicable model
Prof Johann de Villiers, for FET higher education articulation, and we are proud to be
Dean of the Faculty of Economic and Management Sciences at associated with the FPI.
the University of Stellenbosch
Department of Research and Planning at the University of the
Western Cape Further Education and Training Institute
FPI Annual Report 2011 | Setting the Standard 34
Statements of Support Leon Campher,
Chief Executive Officer of the Association for Savings &
Investment SA and
Association for Savings & Investment SA
At the forefront of continuous professional development Peter Dempsey,
Deputy Chief Executive Officer of the Association for Savings &
Financial Intermediaries Association of
Professionalising the financial planning industry
The Association for Savings & Investment SA (ASISA) represents
the majority of South Africa’s asset managers, collective
investment scheme management companies, linked investment
service providers, multimanagers and life insurance companies. One of the core strategies of the Financial Intermediaries
At the end of December 2010, a total of 160 member companies Association of Southern Africa (FIA) is to support the current
managed R3.2 trillion in assets. move in the financial services industry towards greater
ASISA aims to be an active participant in creating an
environment that promotes equal opportunities for its members In order for any industry to claim that its members have a
through holistic legislation, while at the same time considering ‘profession’, it is essential to have a governing body or authority
the interests of consumers and ensuring the sustainability of the that not only takes responsibility for setting guidelines and
industries it represents and the intermediaries who promote standards, but is also involved in equipping its members – in
these industries and their products. ASISA will work towards this case, financial planners – with the necessary knowledge and
promoting a culture of savings and investment in South Africa information to carry out their careers professionally.
by playing a significant role in the development of the social,
The FPI has certainly proven itself as an organisation that sets
economic and regulatory framework in which its members
high standards, both for itself and for its stakeholders in South
operate, thereby assisting members to serve their customers
Africa. The FPI’s six-step approach to financial planning is yet
another example of its commitment to raising the bar, thereby
ASISA firmly believes that intermediaries who render sound supporting the move towards professionalising the financial
and professional advice to consumers are a vital component of planning industry. Perhaps even more important is the fact that
a healthy savings culture. We know that the vast majority of our these standards are also aligned with international trends.
citizens do not have enough life and disability protection. In
It is every financial planner’s goal to obtain CFP® professional
addition, less than 10% of our citizens are able to retire and enjoy
status, and I am certainly proud of my own. Congratulations to
financial security or comfort. These facts reinforce the value of
the FPI for assisting so many of its members through its hard
sound, professional advice.
work and determination.
We acknowledge the role that the FPI has played over nearly
three decades in helping to professionalise the financial planning
Justus van Pletzen CFP®,
Chief Operating Officer of the Financial Intermediaries
and advice sector within South Africa. The FPI is at the forefront
Association of Southern Africa
of the continuous professional development of the South African
35 FPI Annual Report 2011 | Setting the Standard
South African Savings Institute
Instilling a savings culture
We are privileged to have had the support of the FPI on a number
of our key initiatives over the years, in particular its direct
participation in the 2010 Festive Season Campaign.
During this campaign we urge consumers to exercise caution
and restraint in their spending leading up to the holiday season,
reminding them that the new year comes with new and ongoing
financial commitments. At the press conference that normally
marks the launch of the campaign, we were pleased with the
contribution of the FPI by way of an awareness of the benefits of
financial planning to consumers.
It is common knowledge that the low levels of financial literacy
in South Africa contribute directly to our low rate of savings.
The two initiatives that we at SASI drive annually are the Teach
Children to Save and the Varsity Literacy Campaign, aimed at
young schoolchildren and university students respectively.
Over the years we have had positive and active participation on
both these campaigns from the FPI, and we look forward to its
continued support in the years ahead as we attempt to instil a
culture of savings in our youngsters.
There can be no doubt that savings and financial planning are
linked, and we are honoured to have the FPI endorse and support
the work we do, particularly as the FPI is the gatekeeper of the
profession of financial planning and plays a vital role in the
financial services sector.
Elizabeth Lwanga Nanziri,
Chief Executive Officer of the South African Savings Institute
FPI Annual Report 2011 | Setting the Standard 36
2010 Headline News
2010 FIFA World Cup Visitors praised the warm welcome and infectious
enthusiasm of all South Africans. The national flag was
evident everywhere and the honking of vuvuzelas
South Africa was a permanent feature in the streets. Perhaps
more important than anything else, the World Cup
In May 2004, FIFA president Sepp Blatter uttered two succeeded in changing perceptions of the country and
words that will ring in our hearts and minds for years the continent. Africa, and South Africa in particular,
to come: “South Africa”. Beating Egypt and Morocco has now proved beyond a shadow of a doubt that
in the bidding process, South Africa became the first its people are ready and willing to host international
African country to host this prestigious event. events, and that they will give visitors a taste of African
hospitality to take home with them.
Preparations for the tournament were not without
their challenges. Some stadiums had to be revamped
or rebuilt, while others were built from scratch.
Infrastructure improvements were necessary so that
Did you know?
spectators could travel the vast distances between • South African winger Siphiwe Tshabalala was the first
venues. Foreign visitors were concerned about safety player to score a goal in the 2010 World Cup.
and security, and the media abroad was fraught with
• Soccer City is the largest stadium in Africa.
tales of the certain death awaiting those who would risk
coming here. • Bafana Bafana was the lowest-ranked host country
team in World Cup history.
Then, on 11 June, a warm winter sun shone onto the
calabash formation of Soccer City on the opening day • Green Point Stadium has a retractable dome to
of the tournament. The sound of 90,000 vuvuzelas filled protect spectators from nasty weather.
the air, and the green-and-gold Bafana Bafana players
made their way onto the field. At that moment the • The tournament had a total attendance of 3.18 million
world knew that it would experience a World Cup like people.
• The match ball for the tournament generated
Bafana Bafana left the tournament during the group controversy as some players argued that the new
stages after valiant efforts against Mexico, Uruguay and design made the ball unpredictable.
France, but we all then rallied behind Ghana to lift high
the African flag, until they lost against Uruguay in the • French player Patrice Evra blamed vuvuzelas for
quarter-finals. The final between the Netherlands and France’s poor performance in the tournament.
Brazil saw the latter winning its first World Cup title ever, • Magaliesburg decorated the entire town in
but the true victory was for South Africa. Portuguese style as a sign of welcome to the
37 FPI Annual Report 2011 | Setting the Standard
From Industry News
Local Headlines From BRIC to BRICS
In December, South Africa was invited to join the BRIC
group, whose members are Brazil, Russia, India and
Increase in electricity tariff China. These four countries have in common large
In February, the National Energy Regulator granted emerging economies, and it is estimated that they will
Eskom a 24.8% tariff increase for the 2010/11 financial account for 61% of global growth in 2014. The group
year, as well as similar increases for the following two is now officially known as BRICS, with the ‘S’ denoting
years. The anticipated consequences of the price hike South Africa’s membership. Membership of BRICS offers
include the loss of an estimated 250,000 jobs and severe South Africa a unique opportunity to influence African
financial implications for energy-intensive industries economic growth and investment.
such as mining, the automotive sector and agriculture.
However, there can be no doubt that additional power- Better Matric results
generation capacity and more stable supply are key to The year 2010 saw a 7.2% increase in the Matric pass
economic development. rate to 67.8%, with the increase being evident in all
nine provinces. This marks only the third time since 1994
Soweto paints itself blue that so large an increase has been achieved, and this
In May, Blue Bull supporters made their way to the despite a longer winter holiday to accommodate the
Super 14 final in their droves. But instead of going to World Cup, as well as a nationwide teachers’ strike just
Loftus Versveld, the home of the Blue Bulls, they went to weeks before the final exams.ate, Soweto style.
Orlando Stadium in Soweto. An all-South-African final
between the Blue Bulls and the Stormers would have Rhinos top of mind
been memorable enough, but the traditional soccer- Last year saw a total of 333 rhinos killed by poachers
obsessed city changed its colours from the black and – nearly three times the number killed in 2009. The
yellow of the Orlando Pirates and Kaizer Chiefs to the increase in the number of poaching incidents is primarily
Blue Bulls blue. Complete with vuvuzelas and shouts of the result of rising interest in rhino horns from Asia,
“Soweto loves the Bulls”, South African rugby spectators where the horns are used as an ingredient in traditional
were shown how to celebrate, Soweto style. medicine. On the bright side, however, approximately
162 poaching-related arrests were made in 2010, and
Box office hit
the cause of the rhino is now top of mind for many South
The year 2010 saw the release of the science fiction
thriller District 9. Directed by Johannesburg-born Neill
Blomkamp and shot in Chiawelo in Soweto, District 9 International headlines
took South African film making to new levels, following On 12 January, a 7.0 magnitude earthquake hit about
on the heels of acclaimed films such as Tsotsi and 25 kilometres from Port-au-Prince, the capital of Haiti.
Yesterday. District 9 was nominated for four Academy The earthquake is one of the deadliest on record and
Awards and earned $37 million in its opening weekend. over 230,000 people lost their lives.
15 minutes to the airport On 20 April, the drill rig Deepwater Horizon exploded
In June 2010, the first phase of the Gautrain network – off the Louisiana coast in America, resulting in a three-
from Sandton to OR Tambo International Airport – was month oil spill. An estimated 4.9 million barrels of oil were
completed. Instead of an hour on the roads, a short released into the ocean, causing extensive damage to
15-minute train drive will get you from the underground marine and wildlife habitats.
station beneath Rivonia Road right up to the Central
Terminal at the airport. Once the Gautrain network is On 25 July, Wikileaks makes public over 90,000 classified
complete, it is estimated that 100,000 people will use the documents on the war in Afghanistan, following with a
train each day, minimising traffic on the N1 by 20%. leak of documents related to the war in Iraq in October.
Leading South Africa On 5 August, a cave-in at a copper-gold mine in
August 2010 saw the launch of LeadSA, an initiative Chile leads to 33 miners being trapped underground.
started by Primedia Broadcasting and supported by After 69 days and the assistance of local and foreign
Independent Newspapers. By encouraging ordinary governments, all miners were brought to the surface in
people to commit to ‘doing the right thing’, LeadSA an event that is estimated to have been watched by 1
aims to make South Africa a better country for all who billion people worldwide.
live in it. From placing pointspeople on busy intersections
through to fixing potholes, arranging crime summits
and exposing corruption, LeadSA shows how even the
smallest gestures by everyday people can go a long
way towards improving South Africa.
The FPI Team
CEO’s Office Technical Services
Godfrey Nti (CEO) and Sandra Taylor (PA) From the left: Almo Lubowski and Carla Letchman
Certification and Membership Services Marketing and Business Development
Back, from the left: Zanele Xaba, Phillip Kruger, From the left: Mersey Booysen, Tsholofelo Dihutso and
Anthony Campher, Vusi Xaba and Joan Sallie Adel Victor
Front, from the left: Marlyn Veldman, Hannah Brill and
Examination Body Department Finance and Management Services
Back, from the left: Eugene Vermeulen, Anna Fick and Back, from the left: Carol Hardie, Yolanda Grobler,
Andre Rossouw Ohna Norval, Cathryn Stevens, Tinyiko Khoza, Rosie
Front, from the left: Lucille Wessels, Renny Mmusi and Lekhelebane
Toni Santana Front, from the left: Nomaxabiso Tyhutyhani, Batwa
Mzamane and Mpho Nkuna
39 FPI Annual Report 2011 | Setting the Standard
The global symbol
The global symbol The global symbol of excellence
The global symbol of excellence
of achievement in ﬁnancial planning
in ﬁnancial planning
Palms Office Court, Block A, Ground Floor, West Wing, Kudu Avenue, Allens Gauteng, South Africa
Palms Office Court, Block A, Ground Floor, West Wing, Kudu Avenue, Allens Nek,Nek, Gauteng, South Africa
CFP certiﬁcation isis the only globally recognised mark of professionalism for ﬁnancial planners. When seeking
CFP certification the only globally recognised mark of professionalism for financial planners. When seeking
Palms Office Court, Block A, Ground Floor, West Wing, Kudu Avenue, Allens Nek, Gauteng, South Africa
objective, expert and trusted ﬁnancial planning advice you should always look for the CFP mark.
objective, expert and trusted financial planning advice you should always look for the CFP mark.
objective, expert and trusted ﬁnancial planning advice you should always look for the CFP mark.
To achieve the best ﬁnancial planning results, call CFP professional.
To achieve the best ﬁnancial planning results, call aa CFP professional.
To achieve the best financial planning results, call a CFP professional.
086 FPI (374) +2711 475 www.fpi.co.za firstname.lastname@example.org
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For more information on ﬁnding aaCFP professional near ontocall 1800 999 999.call 0861000 FPI (374).
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Longtitude: -26.13031965446835, Latitude: 27.910165786743164
Longtitude: -26.13031965446835, Latitude: 27.910165786743164
Longtitude: -26.13031965446835, Latitude: 27.910165786743164
CFP® Certiﬁcation Global excellence in ﬁnancial planning
CFP® Certiﬁcation Global excellence in ﬁnancial planning
CFP FINANCIAL PLANNER and
CFP® , CERTIFIED FINANCIALPLANNER ® and ® are certiﬁcation marks owned outside the U.S. by Financial Planning
CFP ®,, CERTIFIED FINANCIAL PLANNERTM and ® are certification marks owned outside the by Financial Planning
® are certiﬁcation marks owned outside the U.S. U.S. by Financial
Standards Board Board Ltd. Planning Planning Institute of South Africa is the marks licensing authority the CFP
Planning StandardsLtd. Financial Planning Association of Australia Limited is the marks licensing authority for the CFP
Standards Board Ltd. Financial Financial Association of Australia Limited is the marks licensing authority forfor the
Marks inin in Souththrough agreement with FPSB.
Marks Australia, through agreement with FPSB.
CFP Marks Australia,Africa, through agreement with FPSB. The CFP professional designation is registered for the FPI
SA by SAQA on the National Qualifications Framework (NQF), ID number 59235.