Blue Chip Issue 90

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BLUE CHIP FINANCIAL PLANNING | Legislation Best practice: I believe that every key person would agree that possessing the necessary skills, knowledge, and expertise, as well as having appropriate resources to fulfil their functions, and perform those functions properly are basic requirements for any firm to be successful over the long term. (c) Provide for mechanisms to identify and, where appropriate, remove practices that, or persons whose, conduct materially increases the risk of the financial institution not complying with Part 1; Best practice: I firmly believe that the reasonable key person, who understands the principle of accountability to his/her firm, would want to reduce or eliminate risk to the business and its stakeholders. From a best practice point of view, to identify and, where appropriate, remove practices that, or persons whose, conduct materially increases the risk of the financial institution not complying, would be a basic part of the job description. (d) Be proportionate to the nature, size, scale and complexity of the conduct risks or business model of, and activities performed by, the financial institution; Best practice: Respectfully, the principle of proportionality is something that makes absolute sense, and looks good on paper, but it remains to be seen how exactly the regulator is going to apply it in practice. This aspect will be addressed in a future article. (e) Provide for management processes and responsibilities and the establishment, implementation and management of control functions within the financial institution; Best practice: Many respected and bestselling authors on business have made the point that bad systems will trump good people every time. It is a fundamental fact that sound systems and processes create effectiveness and efficiencies in the business that can be applied consistently. It is simple – sound policies and procedures in any business are good for business. (f) Deal with internal and external remuneration and compensation practices in a manner that promotes compliance with Part 1; Best practice: Best practice remuneration and compensation policies will establish an attractive employment value proposition and will ensure the sustainability of the business. (g) Demonstrate how the licensed financial institution will comply with this Act; and Best practice: Sound, written policies, procedures and oversight have many advantages for the business, as already highlighted above. (h) Address and provide for any additional matters relating to governance arrangements required by this Act. Best practice: Leading key persons will go beyond the obvious to ensure that they can create a very competitive and sustainable business. There is no question in my mind that leading financial services providers will excel in corporate governance, not because they have to, but because they want to. 1 Mervyn King, The Corporate Citizen, page ix 2 Mervyn King, The Corporate Citizen, page 12 3 Mervyn King, The Corporate Citizen, page 19 4 Conduct of Financial Institutions Bill 5 The Conduct of Financial Institutions Act, read with the Financial Sector Regulation Act. 6 Conduct of Financial Institutions Bill Anton Swanepoel, Founder, Trusted Advisor 78 www.bluechipdigital.co.za
FPI | Certification BLUE CHIP Next Generation Certification Standards Want to become a CERTIFIED FINANCIAL PLANNER®? The Financial Planning Institute introduces the Next Generation Certification Standards. The FPI is excited to introduce the Next Generation Certification Standards for the CERTIFIED FINANCIAL PLANNER® (CFP®) designation. The assessment process to become a CFP® professional member of the FPI will be amended from 1 January 2025 to align closely with the current international requirements for CFP® certification. WHY WE ARE CHANGING When determining the competencies of financial planner candidates, the FPI assesses both their knowledge and whether they possess the required financial planning skills and abilities. In line with international trends, the FPI is adapting the assessment processes for CFP® to include a practical component in the form of a Capstone 1 course and a financial plan assessment. The entire assessment process, across the four Es required for certification (education, examination, experience and ethics), is being streamlined. This will ensure that a new CFP® professional is evaluated practically across the knowledge, skills and abilities components of financial planning, which includes the drafting of a financial plan. WHAT IS CHANGING? The CFP® professional competency examination in its current format will be discontinued at the end of 2024. From 2025, candidates on the two different pathways to CFP® certification will be required to complete the steps as shown in the table successfully. How does it affect candidates on our CFP® pathway? If you obtained your recognised underlying qualification during or before 2023, you will be encouraged to complete the FPI Professional Competency Examination (PCE) in its current format before the end of 2024. Should you not attempt the PCE, or not be successful in passing the PCE at this time, you will have to complete the three components of the CFP® RPL pathway examination requirement from 2025 onwards (multiple choice examination, Capstone course and financial plan). The FPI encourages all qualifying candidates to complete this examination and apply for CFP® membership as soon as possible. There will be four examination opportunities available in 2024. Visit www.fpi.co.za to register for the February (8-9) or April (25-26) PCE exams. FREQUENTLY ASKED QUESTIONS How will the FPI ensure that the standard of new entrants to the CFP® designation is upheld? Although the process and method of assessment is changing, it is still based on the global international standards and requirements for CFP® professionals. Education requirements CFP® PATHWAY Education Examination Experience Ethics Obtain the recognised underlying qualification at an FPI recognised education provider. Complete the Capstone course (practical online course on how to apply the knowledge component in practice). Prove three years’ relevant financial planning experience as assessment for skills and abilities. Adherence to the Code of Ethics and professional responsibility and practice standards. and or or Complete the qualification’s Integrated Case Study Module from 2024 onward to assess the knowledge component for certification. Successfully complete the mentorship programme. and Submit a financial plan as the final form of examination assessment for knowledge, skills and abilities. Complete the mentorship programme as assessment for skills and abilities. www.bluechipdigital.co.za 79
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BLUE CHIP 0.5 CONTINUOUS PROFESSION
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Professional Financial Planning and
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Indexation: Anything but Passive. I
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CONTENTS ISSUE 90 FEB/MAR/APR 2024
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BLUE CHIP FPI UPDATES | CEO message
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BLUE CHIP On the money Making waves
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BLUE CHIP On the money Making waves
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BLUE CHIP COLUMN How to get the yea
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BLUE CHIP COLUMN Social media in fi
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INVESTMENT | Leadership BLUE CHIP C
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INVESTMENT | Leadership BLUE CHIP F
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INVESTMENT | Economy BLUE CHIP Top
Page 29 and 30: INVESTMENT | Innovation BLUE CHIP d
Page 31 and 32: Annual Refresher 2024 Cape Town 27
Page 33 and 34: FPI | Financial Planner of the Year
Page 35 and 36: Young Financial Planners Organisati
Page 37 and 38: FPI UPDATES | Awards BLUE CHIP In a
Page 39 and 40: FPI UPDATES | Awards BLUE CHIP The
Page 41 and 42: FINANCIAL PLANNING | Retirement BLU
Page 43 and 44: FINANCIAL PLANNING | Retirement BLU
Page 45 and 46: INVESTMENT | Exchange-traded produc
Page 47 and 48: STRAPLINE BLUE CHIP www.bluechipdig
Page 49 and 50: Financial Planning Institute of Sou
Page 51 and 52: INVESTMENT | ETFs BLUE CHIP Kingsle
Page 53 and 54: PRACTICE MANAGEMENT | Technology BL
Page 55 and 56: PRACTICE MANAGEMENT | Technology Be
Page 57 and 58: INVESTMENT | Economy BLUE CHIP The
Page 59 and 60: INVESTMENT | Hedge funds BLUE CHIP
Page 63 and 64: USE AI FOR EFFORTLESS AGENDAS & MIN
Page 69 and 70: CLIENT ENGAGEMENT | Coaching BLUE C
Page 71 and 72: CLIENT ENGAGEMENT | Behavioural fin
Page 73 and 74: PRIVATE CLIENT HOLDINGS IS AN AUTHO
Page 75 and 76: FINANCIAL PLANNING | Legislation BL
Page 77 and 78: DEVELOPMENT | Internships BLUE CHIP
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Page 83: Partner with us, become an FPI Appr
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Blue Chip Issue 90

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