Blue Chip Journal Issue 76

One thing that unites all CFP® professionals is their conviction that
the pandemic – and the associated economic impacts – has made
the financial planning profession more important than ever.
especially chipper respondent. Meanwhile, 19% of those surveyed
said Covid-19 caused them to consider postponing their own
planned retirement date and working longer.
Regarding the challenges presented by the pandemic, a full
quarter of respondents listed establishing relationships with new
clients as their primary concern while a further 21% stated planning
for the upcoming economic recession as their biggest worry.
The responses underline the fact that financial planners who
are open to technology – specifically digital marketing, cloudbased
software and video conferencing technology – have found
the fallout of the pandemic easier to manage. As one respondent
put it, “Change is inevitable. It is a great opportunity to see ‘crisis
management plans’ in action and to see where we can improve on
processes. Obviously, we do expect challenging times, but there
will also be a lot of new possibilities.”
Advice amid the pandemic
Many readers will be wondering how they should react in the face
of tumbling share prices and seesawing exchange rates. More
than two-thirds of the 761 CFP® professionals who completed the
survey say that their advice to clients is to “sit tight and wait until
volatility decreases before making any major financial decisions”.
Proving that financial planning is as much about people as it is
about numbers, more than four-fifths of respondents expressed
concern at their clients’ mounting stress levels.
Across the board, the five biggest client concerns are:
• Unemployment or reduced income
• Protecting assets
• Managing debt
• Liquidity/cashflow
• Rent/mortgage payments.
“When everything you’ve worked so hard to achieve is
disappearing before your eyes, it can be very tempting to try
to take financial planning matters into your own hands,” says
the FPI’s CEO, Lelané Bezuidenhout. “Clients should resist the
temptation to do this and speak to their financial planner and
if they do not have a planner, to visit www.letsplan.co.za to
find an FPI professional member in their area.”
Now is the time to sit tight
and wait until volatility
decreases before making
any major financial decisions.
FACTORS TROUBLING CFP ®
PROFESSIONALS IN SOUTH AFRICA
Conducting client meetings by phone
16% or video conference and not in person.
The emotional factor. Clients are
11% leaning on me as a therapist first.
Balancing the needs of my clients
11% with my own personal/family needs.
9%
Maintaining more frequent communications
with clients and prospects.
Working remotely.
8%
A huge responsibility awaits
One thing that unites all CFP® professionals is their conviction
that the pandemic – and the associated economic impacts – has
made the financial planning profession more important than ever.
A whopping 91% of respondents agree that South Africans with a
financial plan are more likely to make progress towards their goals,
even during these uncertain times.
As a result, 61% of financial planners
believe that there will be a growing
demand for financial advice delivered
by a professional in the wake of Covid-
19. Already, over a third of respondents
have seen an increase in client queries,
but this is set to grow exponentially as
the public health crisis makes ways for
an economic one.
“This is a tough time for all,” says
Bezuidenhout, “but CFP® professionals
around the country are not shying away
from the challenge of improving the
financial wellbeing of all South Africans
and their families even during turbulent
times like this.”
We wouldn’t want it any other way.
Lelané Bezuidenhout,
CEO, FPI
www.bluechipdigital.co.za
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