Blue Chip Issue 97

Issue 97 • NOV/DEC 2025 / JAN 2026

www.bluechipdigital.co.za

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PROFESSIONAL DEVELOPMENT

THE OFFICIAL PUBLICATION OF THE FPI

0.5 CONTINUOUS


01 CONTINUOUS


01 CONTINUOUS


1.5 CONTINUOUS


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Theoniel McDonald,

CFP®

Brendan Dunn,

CFP®

Nicola Langridge, CFP®

FINANCIAL PLANNER OF THE YEAR 2025

Meet the top three finalists

SUCCESSION PLANNING • INVESTMENT • FINANCIAL WELLBEING

Young Financial Planners Organisation

Advancing Professional

Financial Planning and

Advice for All

Young Financial

Planners Organisation

All that glitters…

South African business leader, advocate for financial literacy and driver of equality in

the finance sector, Olwethu Masanabo, CFP®, has taken over the helm of the FPI as

the FPI Board’s chairperson. In this edition of Blue Chip, we speak to Masanabo about

her aspirations for the FPI.

Masanabo’s long-term vision for the FPI is to position it as a globally recognised professional

body that sets the gold standard in financial planning, while remaining deeply rooted in the

realities of South Africa. “I want the FPI to be known not only for excellence and ethics, but

also for its impact on society and ensuring that financial planning is accessible, inclusive and

transformative,” she says (page 26).

While the FPI has been setting the gold standard in financial planning, there are three

financial planners, in particular, that have been going for the ultimate gold. Meet the top

three finalists competing for the 2025 FPI Financial Planner of the Year Award on page 18.

Congratulations to all three of you and the best of luck for your roads ahead!

The winner will be announced at the FPI’s annual gala dinner that forms part of the FPI

Professional’s Convention, which takes place on the 3 and 4 November at the Sandton

Convention Centre. The theme for this year’s convention is “Bring it home”.

And bringing it home is Rudolf Geldenhuys: the 2024/25 FPI Financial Planner of the Year.

Geldenhuys shares the immense journey of growth he experienced as the FPI Ambassador

in 2024/25. “I’ve learned that you never truly ‘arrive’, but you must keep moving forward –

continuously growing, learning and getting better. One step at a time. Because we owe it to

ourselves, our clients and our families to be the best version of ourselves for them,” he says.

Wisdom, it is said, is better than silver and gold. The FPI has recently launched the FPI

Education and Training Trust, which is dedicated to making professional financial planning

accessible to all South Africans. The Trust is designed to fund bursaries, scholarships, workintegrated

learning and development programmes that remove barriers to entry and

strengthen the pipeline of competent, ethical financial planning professionals. With the

support of industry stakeholders, the Trust will grow the financial planning pipeline, advance

transformation and ensure that all South Africans have access to trusted, competent financial

planning professionals. Please visit www.fpi.co.za to find out more.

Wondering if you should invest in gold? Michael Mgwaba, Absa CIB, provides the ultimate

answer to whether gold warrants a place in your diversified investment portfolio (page 38).

If it doesn’t, perhaps try the Braaibroodjie Index. I believe that it is worth its weight in gold

(page 65).

See you at the convention!

Alexis Knipe, Editor

Blue Chip Journal – The official publication of FPI

blue-chip-journal

Blue Chip is a quarterly journal for the financial planning industry and is the official publication of the Financial

Planning Institute of Southern Africa NPC (FPI), effective from the January 2020 edition. Blue Chip publishes

contributions from FPI and other leading industry figures, covering all aspects of the financial planning

industry.

A total of 7 500 copies of the publication are distributed directly to every CERTIFIED FINANCIAL PLANNER® (CFP®)

in the country, while the monthly Blue Chip Digital e-newsletter reaches the full FPI membership base. FPI members

are able to earn three verifiable Continuous Professional Development (CPD) points per edition of the print journal

(four per year) under the category of Professional Reading.

Special advertising packages in Blue Chip are available to FPI Corporate Partners,

FPI Recognised Education Providers and FPI Approved Professional Practices.

ISSUE 97 |

NOV/DEC 2025 / JAN 2026

Publisher: Chris Whales

Editor: Alexis Knipe

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No portion of this book may be reproduced without written consent

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of any nature arising out of, or in connection with, the contents of

this book. The publishers would like to express thanks to those who

support this publication by their submission of articles and with their

advertising. All rights reserved.

CONTENTS

ISSUE

97

NOV/DEC 2025 / JAN 2026

4

EDITOR’S

10

12

16

17

18

21

22

23

24

26

30

32

NOTE

By Alexis Knipe

THE SPIRIT OF GROWTH, GENEROSITY AND RENEWAL

Message from the FPI CEO

ON THE MONEY

Milestones, news and snippets

LET THE MAIN THING REMAIN THE MAIN THING

Column by Rob Macdonald, Independent Consultant

THE FINANCIAL PLANNING VIEWS OF THE YOUTH

Column by Florbela Yates, Managing Director, Equilibrium

THE CRÈME DE LA CRÈME

Meet the three finalists for the 2025 FPI Financial Planner

of the Year Award

STEADY HANDS IN UNSTEADY TIMES

The University of the Free State writes about the vital role

of financial advisors

BEYOND THE TROPHY

Rudolph Geldenhuys, winner of the 2024 FPI Financial

Planner of the Year Award, shares the invaluable lessons

that he learnt over the year

UJ JOINS THE CPD LANDSCAPE

The University of Johannesburg is now an FPI-approved

Continuous Professional Development provider offering

a dynamic masterclass series

RETIREMENT, FINANCIAL EDUCATION AND THE

CURIOUS ROLE OF AI

Written by David Venter, Head of School, Milpark School

of Financial Services

SETTING THE GOLD STANDARD IN

FINANCIAL PLANNING

Blue Chip speaks to Olwethu Masanabo, CFP®, the FPI’s

new Board chairperson

A CHANGING WORLD

By George Herman, Chief Investment Officer, Citadel

3% INFLATION COULD CHANGE EVERYTHING

By Peter Foster, Chief Investment Officer, Fundhouse

36

38

40

42

44

46

48

50

HOW TO BUILD A SUCCESSFUL

INVESTMENT PRACTICE

By Kritz Koetzee, Head of Business Development –

South, Glacier by Sanlam

SHOULD YOU INVEST IN GOLD?

Michael Mgwaba, Head of Exchange Traded Products

at Absa CIB, defines the value of gold

BITCOIN IN SOUTH AFRICAN PORTFOLIOS

Why a small allocation makes sense, by Altvest

Capital Solutions

STOCKS FOR THE LONG RUN

Neil Padoa, Head of Global Developed Markets,

Coronation Fund Managers, asks what the catch is

AFRICA’S TRILLION-DOLLAR DECADE

Moses Njuguna, Analyst, Mazi Asset Management,

warns you not to miss the African boat

BLENDING ANNUITIES

Just SA uncaps a strategic approach to help retirees

navigate retirement income challenges

LEGACY WITH PURPOSE

Momentum Corporate is empowering South Africans

through knowledge

LEGACY PLANNING: AN ACT OF CARE

Siyasanga Kashe, Executive Member Solutions at

Momentum Corporate, shares five key guidelines to

assist you in safeguarding your legacy

6 www.bluechipdigital.co.za

Free yourself to make

your greatest impact.

CONTENTS

ISSUE

97

NOV/DEC 2025 / JAN 2026

51

52

54

56

58

62

64

A WILL IS NOT A COMMODITY

By Louis van Vuren, CFP®, FPSA®, TEP, outgoing CEO of

the Fiduciary Institute of Southern Africa (FISA®)

FIRST PEOPLE, THEN PRODUCT, THEN PROFIT

Blue Chip speaks to Brandon Garbutt from King Price

FROM WEALTH TO WELLBEING

Marius van der Merwe, CEO, Amity Investment Solutions,

says that the future of advice lies in broadening our

value proposition

LEARNINGS FROM THE FIELD

Kathryn van Dongen, Group COO, Carmel Wealth, has

noticed some interesting patterns in the IFA M&A space

PRACTICE DURABILITY PRESSURES

Succession, consolidation and margins by Commspace

THE 4 CORNERSTONES OF A SUSTAINABLE

FINANCIAL PLANNING BUSINESS

Kevin Feather, Head, Galileo Financial Planning, on

succession planning

ACCOUNTABILITY: TAKING OWNERSHIP

OF OUTCOMES

By Kobus Oosthuizen, CFP®, Manager: Legal & GRC, FPI

65

66

68

69

70

72

74

76

BRAAIBROODJIES ARE MORE IMPORTANT THAN YOU

EVER IMAGINED

Guy Holwill, founder of Fairbairn Consult, has some

advice to all the breadwinners out there

PROTECT YOURSELF FROM FINANCIAL FRAUD

By Bryan Leach, CFP®, Wealth Manager, Private

Client Holdings

FROM INTERMEDIARY TO STRATEGIC ADVISOR

Lessons from WWASA

FROM WELLNESS TO STRATEGY

Redefining human capital and healthcare leadership

COURAGE, COMPASSION AND CONSISTENCY

Martin Loots, Medical Aid Advisor, Medihelp, speaks

about his journey from zero to 1 300 clients

GUARDING AGAINST THE IMPACT OF THE 3PS IN THE

CURRENT GLOBAL SYSTEM

Protecting investors from “groupthink”

SOUTH AFRICA’S RETIREMENT INDUSTRY IS PROVING

ITS RESILIENCE

By Henré Prinsloo, Head of Employee Benefits and

Actuarial Consulting at Momentum Corporate

IT’S ALWAYS BEEN GOOD PRACTICE, BUT NOW IT’S A

LEGAL REQUIREMENT…

By Zeldeen Müller, CEO, inSite Connect and Creator,

AgendaWorx.com AI


Education And Training Fund Trust

Professional Financial Planning and Advice for all

Make a DONATION Today!

FPI UPDATES | CEO message

The spirit of

growth, generosity

and renewal

Lelané Bezuidenhout, CFP®, CEO,

Financial Planning Institute of Southern Africa

The CEO of the Financial Planning Institute of

Southern Africa shares the FPI’s latest news.

As we open this edition of Blue Chip, I would like to

extend a heartfelt welcome to every reader. With

the arrival of summer, there is a renewed sense of

energy, hope and promise. The cheerful songs of birds

in the early morning serve as a gentle reminder of new

beginnings and the ongoing cycles of growth, both in nature

and within our profession. This time of the year is inherently

optimistic – and I trust that optimism is reflected throughout

this magazine and inspires your work in the coming months.

Celebrating the voices of our profession

One of the defining strengths of Blue Chip is its ability to bring

together the collective wisdom of the Financial Planning

Institute of Southern Africa (FPI) community. The contributions

from our members offer insights that not only inform but also

uplift and inspire. In this edition, we are honoured to feature

three significant articles from the FPI community.

In “A will is not a commodity” written by Louis van Vuren,

CFP®, he reminds us that a last will and testament should

never be treated as a mere transaction or something that can

be casually selected off a shelf. Instead, it is the result of a

comprehensive process of estate and financial planning,

which requires a deep understanding of family dynamics,

assets, liabilities and personal aspirations. Van Vuren’s

reflections highlight that even in familiar matters such as

drafting a will, there is considerable complexity and a need for

professional expertise (page 51).

Kobus Oosthuizen, CFP®, shares his perspective in

“Accountability: taking ownership of outcomes”. Oosthuizen

explores the concept of accountability, emphasising that it

is much more than simply avoiding blame. It is about actively

taking responsibility for outcomes. Drawing from analogies

in the healthcare sector, he challenges us to consider how

accountability is influenced by our skills, ethical standards,

client expectations and the frameworks established by

regulators and third parties. His article serves as a timely

reminder that accountability is an ongoing, collective

responsibility that is fundamental to building trust (page 64).

Finally, Rudolph Geldenhuys, CFP®, our Financial Planner

of the Year 2024/25, reflects on his journey in “Beyond

the trophy: the invaluable lessons of a Financial Planner of the

Year”. Geldenhuys shares the growth, sense of responsibility

and opportunities that come with this prestigious recognition.

His story is both motivating and encouraging – a true

testament to the passion, resilience and professionalism that

characterise financial planners in South Africa. Geldenhuys’s

call for others to participate in the 2026 competition is an

invitation for us all to strive for excellence and contribute

to the ongoing advancement of our profession (page 22).

Together, these three articles showcase the depth and

richness of our field, encompassing technical expertise, ethical

reflection and personal development. On behalf of the FPI, I

extend my sincere gratitude to these contributors for their role

in enhancing our collective knowledge and professionalism.


FPI UPDATES | CEO message

I call upon every member, partner and reader to support the

FPI Education and Training Trust in whatever way possible.

Milestones and community highlights

Looking beyond the magazine’s pages, I am filled with

appreciation for the recent milestones achieved by our

community. The FPI Women’s Day event was a standout

moment, providing a powerful platform to celebrate the

leadership, resilience and vision of women in financial planning.

This gathering was more than just a commemoration; it was

a space for mentorship, meaningful dialogue and inspiration.

The stories shared and the atmosphere in the room underscored

the crucial importance of diversity and inclusion to the strength

of our profession.

Another significant highlight was LeaderEx 2025. This

event once again proved to be a valuable forum for dialogue

and innovation. The FPI’s participation underscored the

evolving nature of financial planning, as we adapt to emerging

technologies, shifting client demographics and consumer

needs. It was inspiring to witness how our core message – that

financial planning is centred on people, ethics and long-term

value – resonated with both professionals and the public. My

heartfelt thanks go to every speaker, volunteer and staff member

who contributed to making this event a success.

Looking ahead with optimism

As we embrace Q4 of 2025, let us carry forward the spirit of

growth, generosity and renewal. May this edition of Blue Chip,

serve as a source of inspiration, reminding us of the positive

impact we can make together. I encourage you not only

to support the FPI Education and Training Trust (see below)

but also to remain engaged and committed to the profession

that we all value deeply.

Warm regards,

Lelané Bezuidenhout, CFP®, CEO, Financial Planning Institute

of Southern Africa

Fostering the future

Among our recent achievements, the launch of the FPI Education and Training Trust is especially meaningful to me. This

initiative goes beyond mere funding; it is about creating real opportunities for students who might otherwise lack the

means to enter the financial planning profession. Our aim is to ensure that the next generation of financial planners

mirrors the diverse potential of our country.

We have set an ambitious goal: to raise R300 000 by 31 December 2025. With these funds, we can significantly impact

the lives of students through bursaries and training, broadening the reach and influence of the profession. Each student

we support represents another household gaining access to competent and ethical financial planning advice, resulting in

a powerful ripple effect. By investing in the future of our profession, we are ultimately investing in the financial wellbeing

of families and communities across South Africa.

However, achieving this goal requires collective effort. I call upon every member, partner and reader to support the

Trust in whatever way possible. Every contribution, regardless of size, brings us closer to our target. I encourage you to

visit www.fpi.co.za, learn more about the initiative and consider how you might play a part in this journey. Together, we

can reach our R300 000 goal and transform lives in the process.


11

On the money

Making waves this quarter

FPI CEO honoured

TWO FINANCIAL PLANNER LEADERS HONOURED

Lelané Bezuidenhout, CFP®, and Stephen O’Connor, CFP®, awarded the FPSB 2025 Noel Maye Award

The Financial Planning Standards Board (FPSB), the standards-setting before an audience of more than 70 financial planning leaders

body for the global financial planning profession, is pleased to from around the world.

announce Lelané Bezuidenhout, CFP®, and Stephen O’Connor, CFP®, “The FPSB Noel Maye Award is the pinnacle of recognition

as the recipients of the FPSB 2025 Noel Maye Award for Outstanding in the global financial planning profession, acknowledging

Contribution to the Profession. The award recognises individuals individuals who embody values of service, vision and

who have made a lasting impact on the advancement of financial commitment that define our community,” said FPSB CEO,

planning and CFP® certification worldwide through leadership, Dante De Gori, CFP®. “This year’s award recipients have

advocacy and volunteer service.

made a profound difference in advancing financial planning

The awards were presented during the FPSB 2025 Global Meeting on and CFP® certification worldwide, and we are proud to

10 October in Chicago, Illinois (US), where recipients were recognised celebrate their remarkable achievements.”

LELANÉ BEZUIDENHOUT, CFP®

STEPHEN O’CONNOR, CFP®

A driving force in the

financial services industry

for nearly three decades,

Lelané Bezuidenhout

has served as CEO of the

Financial Planning Institute

of Southern Africa (FPI)

since 2019. Under her

leadership, the number of

CFP® professionals in South Africa has grown to more

than 5 000 – a substantial milestone. A respected leader

and relationship builder, she has elevated the profile of

financial planning locally while serving as a dedicated

global ambassador for the profession. Bezuidenhout’s

significant and tireless commitment to the FPSB

Network includes leadership roles as chair of the Chief

Executives Committee and FPSB Council, and service on

the FPSB Nominating Committee. Through her positive

and collaborative leadership style, she has encouraged

and motivated her peers around the world, helping to

strengthen and propel the global financial planning

profession.

Since attaining his

CFP® designation

in 1996, Stephen

O’Connor has

dedicated his career

to advancing the

financial planning

profession in New

Zealand and globally.

Over more than two decades, he has served

in leadership roles with New Zealand’s

professional associations and held significant

positions within FPSB, including chair of both

the FPSB Board of Directors and Council.

Recognised as a natural and unifying leader,

O’Connor implemented enduring governance

systems within FPSB and strengthened the

global network around a shared mission.

As a mentor and advocate, he continues to

champion CFP® certification and support the

profession through his guidance, mentorship

and sustained volunteer service.


On the money


THE FPI LAUNCHES EDUCATION AND TRAINING TRUST

The FPI has launched the FPI Education and Training Trust, a landmark

initiative dedicated to making professional financial planning accessible

to all South Africans. The trust is designed to fund bursaries, scholarships,

work-integrated learning and development programmes that remove

barriers to entry and strengthen the pipeline of competent, ethical

financial planning professionals.

The idea of a fund was first seeded under the leadership of Prem

Govender, and later formalised through the commitment of Sankie

Morata, Navin Ramparsad and Kirsty Scully during their terms as

FPI chairpersons. Their vision, persistence and governance laid the

foundation for what has now become a reality.

Lelané Bezuidenhout, CFP®, CEO of the FPI and trustee of the trust,

says, “This trust is not about us. It is about the young student in Limpopo

Removing barriers to entry

or the Eastern Cape who dreams of a career in financial planning but

cannot afford the fees. It is about the mid-career professional who has

the experience, but not the resources, to formalise their learning and

become a CFP® professional. The trust ensures that financial planning

does not become a privilege for the few, but a profession accessible to

all who are committed to excellence, ethics and service.”

Olwethu Masanabo, CFP®, Chair of the FPI Board, adds, “Today is a

proud day for our profession. The trust is more than a milestone – it

is a promise to the next generation of financial planners and to the

communities they will one day serve. We are inviting our members,

our corporate partners and the public to walk with us and invest in this

pipeline. The future of financial planning in South Africa begins here.”

Donations to the trust qualify for a Section 18A tax certificate.

EMPOWERING WOMEN WITH ADAPTIVE FINANCIAL ADVICE

According to Momentum’s What Women Want 2025 research, there’s

a striking paradox in financial freedom between women and men.

While 68% of women view financial independence as a key measure

of success, far fewer feel confident about their retirement. This isn’t

due to a lack of ambition but rather a case of not accessing the right

support. South African women typically retire with 21% less in assets

than men. This is even though most women contribute to their savings

more consistently than men. This disparity is a symptom of a financial

landscape that often fails to account for the unique life challenges

women face.

The solution to this disparity lies in adaptive advice, says Cebile Zibi,

head of trade marketing at Momentum Advice. “An approach to financial

planning that prioritises flexibility and responsiveness to changing

life circumstances and market conditions, adaptive advice evolves

with you through every stage of life. It recognises that a woman’s

journey is not a straight line and that financial plans need to be flexible.”

Adaptive advice plans for life’s pivots whether you’re taking a

career break, starting a business or caring for a family member,

helping you rework your financial plan to stay on track. It helps

women optimise their earnings, working with them to identify

opportunities to increase their disposable income through strategies

like tax efficiencies, smart use of benefits and restructuring debt. It

provides layered protection, ensuring women are not just saving

for the future but also protecting what they have built. This includes

Cebile Zibi, Head of Trade Marketing, Momentum Advice

having the right insurance for their income, health and dependants.

“Adaptive advice relies on a strong relationship with a financial

advisor who works closely with their client as they move through

various life stages. Adaptive advice considers the individual and

their financial journey holistically. Women can track their progress

and, together with their financial advisor, make course corrections

to ensure that they retire on their own terms,” she says. “Financial

freedom should be a part of every woman’s success story.”


13

On the money


Success, dealmaking and strategy

THE FINANCIAL ADVISOR’S BLUEPRINT FOR SUCCESS

The Financial Advisor’s Blueprint for Success: A Roadmap to Unlocking

Peak Performance presents a distinguished international collaboration

of thought leaders in the profession, offering a rigorous exploration of

strategies that extend well beyond technical proficiency. The volume

underscores the critical role of cultivating enduring client relationships,

delivering exceptional client experiences and sustaining continuous

professional development.

Structured as a practical guide, it provides advisors at all stages of

their careers with actionable insights on success mindsets, adaptive

strategies for a changing environment and internationally recognised best

practices. By combining scholarly perspectives with proven real-world

ADVISORY FIRMS THAT COMBINE DEALMAKING

The role of corporate finance advisory services has shifted in recent

years. These services are increasingly being conducted with the focus

on strategic stewardship, writes Sydney Mhlarhi, founder of corporate

finance advisory and fund management company, Tamela.

This is why firms that offer technical expertise combined with local

context are increasingly in demand. In response to this need, a select

group of South African boutique advisory firms have positioned

themselves as long-term growth partners for businesses operating in the

country and other jurisdictions. Historically, corporate finance advisory

in South Africa was focused on conducting discrete transactions. This

approach, however, was found lacking, especially in a country where the

regulatory environment and socio-political status quo have a significant

impact on businesses.

Increasingly, clients are looking for advisors who understand the

intricacies of their businesses as well as the local economy; and who can

deliver insights and support over the long term. This means nurturing

relationships premised on trust, creating symbiotic relationships and

providing value beyond the transaction.

Along with trust, comes reputation: what is the firm’s reputation in

the market; is it reliable, or does it have a proven track record? From

an investor and investee perspective, are the people with fiduciary

responsibilities present, and do they offer exceptional local expertise?

Boutique firms are becoming gamechangers. They are agile,

independent and in touch with subtleties. They are entrenching

themselves in their clients’ businesses and advising on financial

structuring as well as operations, housekeeping and market positioning.

They have become the mouthpiece for clients in situations that

require third-party impartiality, where responsiveness is an issue or local

approaches, the work positions itself as an

essential contribution to the advancement

of professional standards, ensuring that

advisors are well-equipped to build resilient

practices, foster client loyalty and secure a

meaningful legacy within the profession.

The book is available internationally

through Amazon and in South Africa

through Takealot, with all proceeds directed

to the MDRT Foundation in support of noble

causes globally.

insights are necessary. Or they have taken a “hit” for the client in volatile

situations. This is driven by client needs and requires strategic capability.

On the investment side, building relationships that endure for over

a decade is crucial, allowing for future opportunities to be harnessed.

As these firms grow, they attract more clients and talent, the focus on

relationships remains paramount. It requires a concerted effort to ensure

senior people are equipped to take over certain relationships or specific

investment clusters. Their advice is more objective. For that reason,

large operations looking to raise capital have at times enlisted boutique

advisory firms for an impartial view of competing funding proposals.

As South African businesses seek out world-class and locally astute

guidance, the role of the corporate finance advisor will continue to

evolve. The leaders in this space are becoming trusted allies and stewards

of growth and co-creation for local businesses.


Independent financial

advice: the power of choice

Independent advisors offer unbiased recommendations, holistic planning

across financial needs, support through life transitions and peace of mind.

FINANCIAL PLANNING | Independence

Tishalan Pillay, Director of

Sales and Marketing, ASI

South Africa’s financial services sector is among the most

advanced on the continent. In 2024, the country led with

an insurance penetration rate of 11.54%, significantly

surpassing the continental average of 1.47% in 2022 and

drawing closer to the global benchmark of 5.6%. This demonstrates

the depth and maturity of South Africa’s insurance landscape,

a market that sets the pace for innovation and regulatory

development across the region.

Insurers and brokers face pressure to grow, prompting many

to acquire stakes in independent brokerages for customer access

rather than innovation. As a result, financial advice is often driven

by profit targets, not client needs, and consumers end up with

products that serve the insurance industry rather than their

personal goals. In this environment, South Africans pay not just

in premiums but also in missed opportunities to build wealth,

protect their families and plan for the future. Without a shift

towards financial literacy, transparency and independent advice,

this cycle will continue making independent advice not just

helpful, but transformative.

Why independence matters

Unlike tied agents who represent a single provider, independent

financial advisors (IFAs) have the freedom to recommend solutions

tailored to your needs, especially within advisory houses offering

access to many products and providers. Research by the Bureau

of Market Research and Momentum found households with

professional advice have portfolios 9.5 times larger on average.

For some, this is the difference between renting for life and owning

a paid-off home, highlighting the impact of financial guidance.

Beyond compliance, towards care

Employee benefits professionals must deliver more with less.

Independent brokers balance cost and care, navigate regulatory

shifts like NHI and medical scheme reform, build wellness

strategies for retention and offer guidance to boost engagement.

Their independence unlocks innovative solutions across the market.

Ultimately, it’s about fostering cultures of care that support

both people and performance.

Protecting the vision

Africa’s youth face a future of potential: by 2035, the continent is

expected to have the world’s largest workforce. For them, financial

literacy is crucial for sustaining businesses, making informed

decisions and achieving long-term growth. When young

entrepreneurs master cash flow, asset protection and planning, they

don’t just build wealth – they build resilience. This resilience fuels

job creation, economic stability and inclusive prosperity.

Independent advice helps founders:

• Separate personal and business finances

• Plan for liquidity events and succession

• Structure ownership and protect assets

• Build long-term wealth while scaling their ventures

“Entrepreneurs are builders,” adds Tishalan Pillay, director of sales

and marketing at ASI. “But without the right financial strategy,

even the best ideas can falter. Independent advice helps turn

vision into legacy.”

Reclaiming purpose and professionalism

Choosing to be an independent advisor means serving clients

without compromise, building trust and creating value beyond

commissions. While tied agents often earn more selling specific

products, independents prioritise clients’ interests. Remaining

independent is a bold, client-first choice in a market where

providers tie advisors to their offers.

The trade-offs

Independence comes with trade-offs. Advisors and clients may

face higher costs and more compliance. But these challenges

are balanced by the freedom to choose products in the clients’

best interests. For many, this freedom outweighs the constraints

of tied models. Independent advice empowers individuals to

control their financial futures. It helps businesses build caring

cultures, individuals plan confidently and entrepreneurs protect

what they build.

At ASI, we provide accessible, inclusive, purpose-driven advice

to help South Africans make decisions that truly matter through

our advisers, platforms and podcasts.

The ASI podcast

ASI is launching a podcast series with Nicolette Mashile,

South Africa’s leading voice in financial education. The

series features ASI experts and independent advisors

discussing a range of topics, including medical schemes,

employee benefits, entrepreneurship and wealth creation.


15

COLUMN

Let the main thing remain the main thing

The dramatic evolution of technology is challenging financial planners to think about what is their “main thing”?

Rob Macdonald,

Independent Consultant

Rob Macdonald has held

several senior positions in the

investment industry. He is an

independent consultant and

coach who also develops and

facilitates training programmes

in behavioural coaching and

practice management. Before

joining the financial services

industry, Macdonald was MBA

director at the UCT Graduate

School of Business. He is the

author of the book The 7 Pillars

of Financial Health and is coauthor

of Rethinking Leadership.

Macdonald has a Master’s

degree in Management Studies

from Oxford University and is a

CFP® Professional.

The Springbok rugby team’s success

since Rassie Erasmus became coach

in 2018 is testament to his mantra,

“Let the main thing remain the

main thing.” In response to many factors

influencing the Springboks at the time –

poor win-loss ratio, tactical frailties and

demands for greater transformation –

Erasmus advocated winning as the “main

thing”. His remarkable success in winning

and achieving significant transformation

makes his generation of Springboks arguably

the most successful of all time.

Another lesser-known South African

sportsman who has been successful by

keeping the “main thing” the “main thing” is

Paul Sinton-Hewitt, the founder of parkrun,

a free weekly timed 5km run for anyone, be

they runners, walkers, old, young or even

dogs. In October 2024, parkrun celebrated

its 20th anniversary, with 10-million

registered participants, a weekly average

of 300 000 taking part in over 2 000 events

across 23 countries. How did Sinton-Hewitt

achieve this success?

Having moved to the UK from South

Africa when he was 28, a talented runner, he

injured himself so badly while training for a

marathon that he couldn’t run competitively

any more. Sinton-Hewitt documents in his

book One Small Step how he went into a

mental and emotional decline because he

couldn’t run. He missed running but realised

he missed the camaraderie and connection

with fellow runners more. He organised

his first “park run” in 2004, the “Bushy Park

Time Trial”, with 13 runners and encouraged

runners to go for coffee afterwards and

enjoy some connection and community.

The name “Time Trial” did not capture

the “main thing” which was that it was for

runners of all abilities, and that it wasn’t

about the time, but the sense of community

that came from participating in the event. At

the suggestion of one of his volunteers, and

with the help of Nike’s marketing team, he

changed the name of the event to parkrun.

Technology proved to be the backbone

of Sinton-Hewitt’s ability to scale the event.

He worked in IT, so he had the expertise

to build a database and system that

enabled the remarkable growth in parkrun.

While technology played a key role in the

evolution and success of parkrun, there was

a limit to which Sinton-Hewitt was willing to

take it.

Some potential competitors offered

similar timed events but with less “hassle”,

giving participants a chip that was

automatically read at the start and finish.

Sinton-Hewitt’s events require teams of

volunteers to act as a starter, timers and

marshals handing out finishing position

tokens and scanning these tokens and the

personalised parkrun identity barcodes

every runner has.

Sinton-Hewitt rejected the temptation

to automate parkrun with readable

chips. His “main thing” is connection

and community, so he limited potential

efficiency gains from technology to ensure

that the “main thing” remained the “main

thing”. The extraordinary global success of

parkrun suggests that his decision was the

correct one.

Technology is facilitating efficiencies on

a scale unimaginable only a few years ago.

So much can now be done without genuine

human contact. All this efficiency begs

the question, what is the “main thing” for

financial planners? Is your client a person or

is it their money?

As Pablo Picasso said: “Computers are

useless. They can only give you answers.”

What answers do your clients really

need? And can technology alone equip

you to provide them? Or as Paul Sinton-

Hewitt decided, there is a need to limit

technology to let the “main thing remain

the main thing”.

Being skilled and tactically astute

at human connection is likely to beat

computers as consistently as the Springboks

seem to beat every team they play.


COLUMN

The financial planning views of the youth

Young people today are navigating a complex financial environment, characterised by ambition and anxiety.

Florbela Yates, Managing

Director, Equilibrium

Florbela Yates is the

Managing Director

of Equilibrium in the

Momentum Metropolitan

group. Equilibrium is an

independent discretionary

fund manager that partners

with financial advisors

to help them enable

their advice outcomes.

Equilibrium brings balance

to an advice practice by

delivering services and

investment solutions to

help clients achieve their

defined investment goals.

Their views on financial planning

diverge significantly from those of

older investors, primarily due to their

evolving relationship with money. A

prevalent trait among younger investors is the

“save-to-spend” mindset. While many are aware

of the importance of financial discipline, their

priorities lean towards immediate gratification,

often overshadowing longer-term investment

strategies. At Equilibrium, we have recognised

these differences and have invested heavily

in behavioural analysis to supplement our

offering to financial planners and our combined

investors. We categorise our younger investors

into three broad groups:

Planners tend to have clear financial goals

and are happy to work with financial advisors.

Dreamers aspire to financial success but

often lack the concrete plans to get them there.

Drifters neither set goals nor make plans,

often defaulting to family for financial support.

One of the most notable distinctions

between the youth and older investors is

their mistrust of traditional financial channels.

Growing up in an era of instant answers and

on-demand information, young people prefer

the immediacy of online tools over face-toface

interactions with advisors. Psychologically,

while many young people recognise the

importance of budgeting and saving, they

often lack confidence in managing money and

making financial decisions.

This is compounded by a gap in financial

education, which is critical for building

budgeting skills, saving habits and overall

financial confidence. In South Africa, this is

exacerbated by our youth facing a uniquely

tough financial landscape, shaped by systemic

and economic challenges:

High unemployment. Nearly 50% of young

South Africans are unemployed.

Low financial literacy. Fewer than 30% of

young people have a solid monthly budget, and

over 50% struggle with financial management.

Limited access to financial tools. Despite

having AI at their disposal, research shows

that products like life insurance, retirement

plans and emergency funds are underutilised.

Industry statistics show only 35% of people

under 30 have life insurance, just 13% have

critical illness cover and a mere 18% have

disability cover.

Social media misinformation. Over 45% of

youth get financial advice from social media,

which can be misleading or incomplete. This

contributes to misconceptions about wealthbuilding

tools and risky financial behaviour.

Lack of savings culture. Many young South

Africans grew up in households without a

savings tradition. For them, the idea of saving is

unfamiliar and often undervalued.

Lifestyle pressures. Keeping up appearances

leads to spending on branded goods and

lifestyle upgrades rather than savings or

investments, which undermines long-term

financial stability.

Digital disconnect. Only 39% of youth feel

confident using digital financial tools. This limits

their ability to engage with modern banking,

investing and budgeting platforms.

As investment managers, we have a vital

role in partnering with financial advisors to

help younger investors meet their long-term

financial goals. Investors who use a financial

advisor tend to have three times the financial

outcomes as those who don’t. But it’s up to us to

work together with financial advisors to educate

the youth, ensure that they see the value of

advice and saving and that we encourage them

throughout the journey to:

• Invest regularly

• Review their changing needs regularly and

adjust their plans to help them accordingly

• Show them how we help them build trust,

meet their short-term needs while remaining

focused on their longer-term financial goals

I challenge our industry to work together to

remain relevant and empower South Africa’s

youth to grow their wealth. After all, they are

our future clients, and their financial success is

our shared responsibility. As an independent

discretionary fund manager (DFM), we enable

you to do what really matters – spending

more time with your clients and building your

business. To find out more, visit eqinvest.co.za.

Equilibrium Investment Management (Pty) Ltd (Equilibrium) (Reg. No. 2007/018275/07) is an authorised financial services provider (FSP32726) and part of Momentum Group Limited, rated B-BBEE level 1.

©2025 Equilibrium Investment Management (Pty) Ltd (Equilibrium).


17

FPI UPDATES | FPotY

The Crème de la Crème

The Financial Planner of the Year Award was launched in 2000 and is the most prestigious award in the

industry. It recognises South Africa’s top CERTIFIED FINANCIAL PLANNER® – a stellar professional who

exhibits revolutionary ideas, consummate skill and unimpeachable ethics when dealing with clients.

Meet the three finalists.

THEONIEL MCDONALD, CFP®

Senior Financial Planner, Wealth Associates

What changes would you like to see in the industry?

Too much of our industry still focuses on single-need plans.

Advisors often gravitate to the areas they are most comfortable

with or where their process is strongest. I would like to see

comprehensive financial planning elevated, with greater

emphasis on all six components of planning. Advisors don’t need

to be experts in every area, but we should be able to identify

gaps and know when to refer clients to trusted specialists.

This shift would strengthen client outcomes and reinforce the

professionalism of our industry.

What are your long-term objectives?

My long-term objective is to make a meaningful difference

not only in the wellbeing of my clients, but also in the broader

financial planning profession. I want to elevate the perceived

importance and value of advice, while making it more accessible

and relevant to the average South African.

Why did you enter the Financial Planner of the Year Award?

I entered because I am proud of the advice process we’ve built

and believed it could stand alongside the best in the profession.

The awards offered an opportunity to benchmark our work

against leading practices, test ourselves against peers and see

where we can raise the bar even further.

What have you learned through the process of entering?

One key lesson I’ve learned is that we often spend too much

time working in the business and not enough time working on

it. This process highlighted the importance of regularly stepping

back to review our processes, tools and templates – and making

that a priority at least once a year.

How has the process of applying for the Financial Planner of

the Year Award benefitted or changed your business?

Although we have always prided ourselves on delivering

comprehensive financial planning, measuring our work against

the FPI’s financial planning framework showed areas where

we could refine and strengthen our approach. It has inspired

meaningful enhancements to our plans and given us a fresh

perspective on how to elevate the value we deliver to clients.

About Theoniel McDonald

I believe financial planning should give you more than

spreadsheets and projections, it should provide clarity,

confidence and control over your future. For over 20 years, I

have helped ambitious professionals, families and founders

navigate life’s most important financial decisions: from

building wealth and protecting loved ones to succession,

retirement and legacy planning. As head of financial planning

at Carmel Wealth and senior financial planner at Wealth

Associates, my mission is simple: to make the financial journey

straightforward and empowering, helping people move from

uncertainty to momentum.

I began my career with a passion for solving problems

and bringing structure to financial challenges. Over time, I

learned that planning is not just about numbers, it is about

people. Money choices are deeply connected to values, family

and purpose. This insight has shaped the way I work: deeply

personal, always strategic and grounded in trust.

Today, I lead our advice philosophy across the group,

ensuring our planning culture is evidence-based, human and

future-focused. I partner with clients to design strategies that

preserve and grow wealth across generations, building longterm

relationships that adapt as life evolves.


FPI UPDATES | FPotY

NICOLA LANGRIDGE, CFP®

Wealth Manager, Private Client Holdings

I believe financial planning has

the power to change lives.

constructive feedback to our teams, which helps ensure that

we remain ahead of industry standards.


I would like to see more young advisors qualifying as CFPs® to

ensure that the financial planning advice the public receives

is of the highest ethical standard. I believe it is critical to

educate the public regarding what to look for when choosing

an advisor so that they receive professional, ethical and truly

client-centric care.


I attended the FPI Convention Gala Dinner for the first time

in 2017, just a year after becoming a CFP®. That evening, my

colleague, Mark MacSymon, won the prestigious Financial

Planner of the Year Award. Watching him during the year that

followed gave me a front-row view of the incredible platform

this award provides to educate, inspire and empower others.

I decided that year that when I had the necessary experience,

I would enter as I, too, want to contribute to the profession in

a meaningful way.


Preparing for this award encouraged me to pause and

consider my strengths, weaknesses and the ways in which I

am contributing to the profession. This exercise highlighted

just how passionate I am about being a spokesperson for

the industry. I believe financial planning has the power to

change lives, not only through technical excellence, but also

by incorporating behavioural insights that help clients align

their decisions with their long-term goals.



Private Client Holdings has been working on refining our

processes, both through a regulatory and efficiency lens, with

teams consistently focused on improvement. The application

process allowed me to stress-test these processes and provide


I am determined to continue empowering my clients to achieve

their wealth management goals, providing guidance, clarity

and support at every stage. As a finalist for this award, I am an

ambassador for the profession. My grounding in behavioural

finance gives me a unique lens to highlight the “human side”

of wealth management, focusing not only on markets and

returns but also on listening, understanding and helping people

live meaningful lives. In the long run, I hope to help build a

profession that not only attracts but retains passionate, valuesdriven

financial planners who can carry our industry forward.

About Nicola Langridge

Nicola Langridge joined Private Client Holdings in 2016, growing

into wealth management from a strong foundation in unit trust

operations with a local asset manager. She holds a BBus Sci (Honours)

in Finance from the University of Cape Town and a postgraduate

diploma in financial planning from the University of the Free State.

At Private Client Holdings, Langridge follows a goals-based

process that is part of a Family Office approach to wealth

management. This complex structure effectively positions client

capital to achieve meaningful outcomes. Langridge has a strong

grounding in behavioural finance, which she applies to ensure clients

make better long-term decisions by understanding their biases,

values and emotional responses to money. She has a special interest

in empowering women to take charge of their financial affairs and

she is committed to providing comprehensive, professional and

client-centred advice.

Having travelled extensively, Langridge is now settled in her

birthplace of Cape Town with her husband and two children. The

family spends their free time on the beach and in the ocean.


19

FPI UPDATES | FPotY

BRENDAN DUNN, CFP®

Executive Head Johannesburg, Hewett Wealth

Since I learned about the

award more than 10 years ago,

I dreamed of one day reaching

the high standards of the

planners that had won it.

getting more people interested in their own financial planning

and as a potential career path. I would like to see much more

focus on education and the creation of educational resources

for the public.


Since I learned about the award more than 10 years ago,

I dreamed of one day reaching the high standards of the

planners that had won it. After nearly 10 years in the industry

and with the encouragement of my colleagues, I decided to

enter this year. I wanted to test myself and to learn and improve

in the process.


That I am on the right path in terms of how I do financial

planning and how I serve clients.



To make the final three of this competition is a great honour for

me and the business I work for, Hewett Wealth. It is an objective

confirmation of our excellence in terms of how we do financial

planning and how we serve clients. It therefore enhances our

marketability and referability. I have also gained much greater

confidence and belief in myself as a planner and the way I think

about financial planning.


I would like to see more young planners joining and becoming

well established. Mentorship and support are key in this

regard. I would like to see more engagement with students,


I want to give back and uplift the financial planning profession,

by mentoring and helping bring through more young planners

and equipping them with the skills to bring through the next

generation and the next, etc. I want to create more high-quality

educational content (videos, podcasts, articles and maybe even

write a book or two).

About Brendan Dunn

Brendan Dunn obtained a BCom Honours degree in

Accounting Sciences from the University of Pretoria and

completed his articles at TGVN Auditors, registering as a

chartered accountant (CA(SA)) in 2016. In 2016, he joined Verso

Wealth as a paraplanner, obtaining his postgraduate diploma

in financial planning through the University of the Free State

and becoming a CERTIFIED FINANCIAL PLANNER®. He served

as a financial planner from 2018 until the end of 2020 and then

worked in asset management with Galileo Asset Managers

before joining Hewett Wealth in 2023 as a financial advisor

and is now the executive head of Johannesburg.

Dunn chose a career in financial planning because it

married his purpose of helping others with his love for

investments, analysis and strategy. He is passionate about

financial education and the mentoring and support of young

financial planners.

Dunn is married to Jacqui, and they have a four-year-old

daughter, Kylee. He is an avid road runner and has completed

seven Comrades Marathons and counting.

20


FINANCIAL PLANNING | Professionalism

Steady hands in unsteady times:

the vital role of financial advisors

Financial strain not only disrupts budgets but could also shape our behaviour, our decisions and even our

sense of security.

Life is expensive and getting more costly by the day. It is not

merely the occasional complaint; it is widespread, a living

reality for most South Africans. Many households have had

to re-evaluate their priorities and spending habits due to

increased food and fuel prices. Interest rates remain high and debt

is heavy to manage.

When times are tough, we become more reactive. We start

thinking in terms of survival rather than strategy. The long-term

picture blurs because the immediate problem feels so pressing.

Just as we guide our clients through complex decisions, we

must also remember that even financial advisors and professionals

are not immune to the emotional weight of money decisions.

When faced with personal crises, it is often as difficult for us to

think clearly as it is for anyone else. As the saying goes, even the

best doctor can’t operate on themselves, and the same applies

to our profession, obviously not in that extreme, but to a certain

extent. Seeking objective financial advice from a trusted colleague

or advisor is not a sign of weakness; I would go as far as to say it

is a mark of professionalism. It allows us to step out of our own

emotional fog, to see our situation with clarity, and make decisions

that align with the same long-term principles we

advocate for our clients.

I have experienced this myself. Going

through a divorce, I remember sitting

down and thinking, “How am I going to

rebuild? What am I going to do financially

now that I am on my own?” My very first

instinct was to dip into my pension fund.

It seemed like the easiest solution, a way

to take back some control in a life turned

upside down. As someone passionate

about the importance of saving and

preserving pension savings, I know

better than most what that decision

would mean for my future. It was a

moment of real tension between

emotion and reason, between

what felt urgent and what I knew

to be wise. Conversations with

my financial advisor and colleagues in the industry helped me

regain perspective and guided me towards a decision that was

better for my future.

As financial professionals, we

have to be careful not to let

our own financial pressures

cloud our thinking.

That moment has stayed with me, and it also made me realise

something important: as financial professionals, we have to be

careful not to let our own financial pressures cloud our thinking

or affect how we support our clients. When we’re under personal

strain, it’s easy to become reactive, focus only on the short term

or make overly cautious decisions. And that can unintentionally

influence the advice we give. Keeping our own finances and

emotions in balance helps us stay clear-headed and objective, so

we can guide clients with the same calm, long-term perspective

we encourage them to take. Just as we ask our clients to plan

for the future, we need to practise that discipline ourselves

and not let today’s pressures dictate our actions.

Clients today are not only looking for financial plans,

but someone to steady their thinking when life feels

unsteady. Our role is to listen, empathise and help them

pause before making choices that may harm their future

selves. Clients may forget the spreadsheets, but they will

remember the advisor who stood by them when

life felt overwhelming. This is the essence of

our profession: not to dictate, but to guide;

not to lecture, but to empower.

Professor Liezel Alsemgeest, Director of

the UFS School of Financial Planning Law


21

FPI UPDATES | FPotY

Beyond the trophy: the invaluable

lessons of a Financial Planner of the Year

Rudolph Geldenhuys shares his experience of winning the FPI Financial Planner of the Year 2024/25.

Receiving the title of South Africa’s Financial Planner of

the Year for 2024/25 has been an incredible honour. It’s

a bit surreal, and while the trophy sits on my desk at

home, the true value of this journey lies far beyond

the awards ceremony. This past year has been one of immense

personal and professional growth.

The opportunity to even compete for this award was a deeply

personal goal of mine. I planned for it and worked towards it,

yet I never truly expected to win, given the calibre of incredible

financial planning professionals in our country. To be added to

the list of FPI Financial Planner of the Year award recipients – a

list of people I have looked up to and aspired to be like – is a

profound privilege.

The journey since August 2024 has been both incredible

and daunting. The weight of responsibility of being the official

ambassador for financial planning in South Africa is something

I did not take lightly. And the competition process itself? It

forced me to critically look at what I bring to the table for my

clients. It helped me to strengthen the conviction of the WHY

behind what I do, which then more easily informed the WHAT

and the HOW of the day-to-day of being a financial planner

and business owner. The competition also confirmed that I

am on the right track and encouraged me to keep deepening

the foundations of my work. I’ve learned that you never truly

“arrive”, but you must keep moving forward – continuously

growing, learning and getting better. One step at a time. Because

we owe it to our ourselves, our clients and our families to be the

best version of ourselves for them.

As professionals, we are

all better together.

The award has also been a catalyst for new opportunities,

accelerating my ability to have an ownership stake in an

independent financial planning firm. At Firecrest Wealth in

Cape Town, my business partner, Gareth Collier, and I have the

amazing opportunity to help clients make decisions that serve

them not just in the present, but for their future. It is a profound

privilege and responsibility that we get to partner with our

clients for the long term as they navigate life’s many transitions

and help them steward their balance sheets in order to live a

meaningful and purposeful life.

Being the 2024/25 FPI Financial Planner of the Year has also

opened so many doors to me, particularly in the speaking world.

It has been such a pleasure to share some of my learnings with

fellow financial planners in Gauteng, Cape Town and Durban, as

well as global audiences through virtual sessions. I am a product

of the financial planners who have mentored me and shared

their knowledge and experience with me, and to be able to share

some of myself with others is truly amazing. As professionals, we

are all better together.

Beyond speaking to my fellow financial planning professional

peers, I’ve had the opportunity to speak to and be part of

the ongoing financial education efforts in South Africa with clients

of all ages and stages of life through various media, including TV,

social media, radio and print. This has been deeply rewarding,

because it related directly to our purpose as financial planners:

to help people comes to terms with the crucial tension between

the personal and the technical side of financial planning.

To every CFP® professional reading this, I want to encourage you

to take up the challenge of entering the 2026 Financial Planner of

the Year competition. Whether you win or not, you will be stretched,

you will be challenged and you will grow in ways you cannot

anticipate. And if you do win, it will open up the most incredible

doors for your future within the profession. The time to begin your

journey to excellence is now.

Rudolph Geldenhuys, CFP®, the FPI Financial Planner of the

Year 2024/25.


DEPARTMENT OF FINANCE AND INVESTMENT MANAGEMENT

UJ joins the CPD landscape with a dynamic

Masterclass series By Amira Asvat, CFP®

Why CPD and why now?

Raising professional standards

DFIM’s decision to become an approved CPD provider stems from a

The Department of Finance and Investment Management (DFIM) at the

desire to connect academic knowledge with professional application.

University of Johannesburg (UJ) has reached a significant milestone in 2025 by Financial planning is a discipline that evolves continuously, shaped by

becoming a Financial Planning Institute (FPI) approved Continuous Professional legislation, economic pressures, and social change. We saw a need for

Development (CPD) provider. This achievement underscores our commitment to structured forums where professionals could engage with these issues,

delivering education that is not only academically rigorous but also tailored to deepen their expertise, and reflect on their role within society.

the practical needs of financial services professionals in a rapidly changing There is also a wider purpose. Financial advisers occupy a position of

environment.

trust, helping families to make decisions on retirement, property,

For advisers, CPD is much more than a regulatory requirement. It represents an education, and financial protection. By supporting their ongoing

ongoing process of learning that enables practitioners to refine their

development through accredited programmes, DFIM is contributing to

knowledge, remain abreast of developments, and uphold the highest ethical higher standards of practice, greater public confidence, and a more

standards. By attaining accreditation, UJ has signalled its intention to play a resilient financial system overall.

central role in the professional growth of financial planners, ensuring that the

advice given to clients remains informed, relevant, and responsible.

Looking ahead

The response to the 2025 masterclasses has confirmed the appetite for

A masterclass series to launch the journey

well-designed, credible, and thought-provoking CPD opportunities.

To inaugurate our CPD programme, DFIM hosted a series of three masterclasses Building on this success, UJ intends to continue developing its CPD

in 2025, each one presented by a respected authority and addressing a theme portfolio in future years. Our vision is to host regular masterclasses

that resonates strongly with today’s financial landscape.

featuring regulators, practitioners, and academics, addressing topics

The opening session was delivered by Advocate Ronald King, who explored The such as sustainable investing, digital innovation, and global financial

Psychology of Financial Planning. His presentation moved beyond technical trends.

calculations to examine the ways in which behaviour, emotion, and personal

values influence financial decisions. King highlighted the cognitive biases that Conclusion

can lead to poor outcomes and emphasised the importance of empathy and Becoming an approved CPD provider is more than a formal recognition

understanding in building sound financial strategies. His session demonstrated for DFIM; it represents a reaffirmation of our role as a leader in

that financial planning is as much about people as it is about numbers.

professional education. Our aim is not simply to help advisers meet their

The second masterclass was presented by Katherine Gibson from the Financial compliance obligations, but to inspire them to think critically, to act

Sector Conduct Authority (FSCA), who will speak on Consumer Education. This ethically, and to innovate in the service of their clients.

underlined the regulator’s mission to improve financial literacy and empower As we look to the future, we extend an invitation to professionals,

South Africans to make better-informed choices. Consumer education is

students, and industry partners to join us on this journey. The UJ CPD

essential not only for protecting individuals from debt traps or exploitation but masterclasses are designed not merely as training sessions, but as

also for fostering long-term financial stability.

opportunities to engage with complex issues, exchange ideas, and

The final masterclass of the 2025 series was delivered by Advocate Lucia strengthen the financial planning profession.

Hlongwane, who addressed The Management of the Impact of the VAT Increase With accreditation achieved and a successful series of masterclasses

on Personal Finance. With households nationwide feeling the effects of higher underway, UJ stands ready to continue setting the standard for CPD in

living costs, her session will focus on practical strategies to help clients adjust financial planning—combining expertise, insight, and a clear

their spending, preserve savings, and maintain resilience.

commitment to excellence.

Dr Musimuni Dowelani

Head of Department

Mr Anrich Van Jaarsveld

Deputy Head of Department,

Programme Manager:

Financial Planning

Amira Asvat, CFP®

Lecturer

Scan to find out more

about our courses

Retirement, financial education,

and the curious role of AI

By David Venter

CLIENT ENGAGEMENT | Behavioural finance

On a Sunday afternoon, just before deadline, I sat down with

the task of putting together an article for this publication.

As is often the case, what began as a quick 30-minute

search for article ideas and trending themes in the financial

landscape quickly turned into a whirlwind of observations about

the financial services sector, higher education and even artificial

intelligence (AI). What I came away with were a few reflections

that feel particularly relevant to our audience of financial services

professionals, and also to my own area of influence: higher education.

The first reminder was just however helpful AI can be in scanning

widely, reliably and precisely for inspiration. These tools are no longer

novelties – they are reshaping the way we search, synthesise and

communicate ideas. As academics, many of us have been historically

rigid in our approaches, yet the world of work is already embracing

these technologies at speed. Preparing students for this future means

ensuring they can use AI critically and ethically.

The second surprise was a humorous one. The article that

ultimately inspired this piece turned out to be authored by my nextdoor

neighbour’s son, who, unbeknown to me, had been working as

an academic researcher in Australia at the time. It is a small world, and

sometimes a funny one.

The paper in question which struck a chord with me was Matthew

Olckers’ (2021) "On Track for Retirement?", which examined whether

providing South African employees with a retirement income

calculator would encourage higher retirement contributions. His

findings were striking: despite being shown clear projections that most

would fall short of maintaining their standard of living, employees

barely adjusted their savings behaviour. Contributions increased by

less than 0.2 percentage points – statistically indistinguishable from

zero (Olckers, 2021).

In other words, even when the numbers are laid bare, knowledge

alone is not enough to shift behaviour.

This resonated with me deeply. A few years back, I ran an informal

exercise with colleagues in the financial services education space,

estimating what percentage of income one would need to save

monthly depending on age. Despite our expertise, many of us landed

in the same general “bucket” of results as Olckers’ participants:

underestimating what was required and defaulting towards

minimums.

It led me, on that Sunday afternoon, to ask: is my passion for

educating future financial services professionals – whether CFPs,

CFAs, analysts, fund managers or wealth managers – a losing battle?

The answer, thankfully, was no.

Why do I remain optimistic? While it is true that behavioural biases,

short-termism and optimism about investment returns often lead

individuals to under-save (Olckers, 2021), I remain convinced that

our industry provides a valuable, life-changing service. The work of

educating and equipping professionals is far from futile; in fact, it is

more important than ever.

Bodies such as the Institute of Bankers South Africa, the Financial

Planning Institute of Southern Africa, the Association for Savings and

Investment South Africa (ASISA) and the CFA Institute – together with

higher education institutions like the Milpark School of Financial

Services and our public universities – are diligently working to prepare

professionals to advise individuals in ways that meet them where

they are. The mission is clear: help clients make hard, wise, long-term

decisions that will benefit them and their families in retirement, even

when those years feel far away – until, suddenly, they are not.

For those reading this who are already in the sector or who aspire

to join it, I hope this quick read offers a few pertinent reminders.

First, that our work matters. Each retirement plan, each conversation

about contributions, each financial literacy workshop is more than a

transaction – it is a step towards dignity and security for individuals

and the communities they support.

Second, AI is no longer a distant concept but a powerful tool that

can help us research and collate coherent reflections of our draft

thoughts and musings more efficiently – when deadlines loom. Used

wisely, it can complement human judgement, rather than replace it.

And third, the world is indeed small. Your neighbour’s son may just

be authoring a paper that shifts your Sunday afternoon thoughts.

Finally, as Olckers (2021) shows, financial knowledge on its own

may not move the needle. But as financial services practitioners,

educators and policymakers, we can – and must – continue to

combine knowledge with behavioural insights and the kind of

professional advice that translates information into action.

That is why, in spite of the frustrations, I remain both optimistic

and motivated to keep contributing to the upskilling of our industry,

and you too as financial services

practitioners, reading this, should

remain resolute too, to provide long

term advice for the betterment of

your clients.

References

Olckers, M. (2021). On track for retirement?

UNSW Sydney. Retrieved from https://

www.matthewolckers.com/

Researcher, Stellenbosch University

David Venter, Head of

School: Milpark School of

Financial Services


Recognised

Recognised

FPI UPDATES | Membership news

Setting the gold standard

in financial planning

South African business leader, advocate for financial literacy and driver of equality in the finance sector,

Olwethu Masanabo, CFP®, has taken over the helm of the FPI as the FPI Board’s chairperson. Blue Chip spoke

to her about her aspirations for the FPI.

to. It represents the culmination of years of commitment to

advancing financial planning, but also a renewed sense of duty

to serve with integrity and vision.

Professionally, it means I now carry a greater responsibility

to ensure that the FPI continues to lead with purpose, setting

the highest standards, protecting the interests of clients and

equipping financial planners with the tools they need to thrive

in an ever-changing environment. For me, this role is not about

a title, but about being a custodian of trust for both our

members and the South African public.

As the FPI, we have a

responsibility to not only serve

our members but to champion

financial education.

Olwethu Masanabo, CFP®, Chairperson, FPI

Congratulations on your appointment as chairperson of the

FPI Board. What does becoming chairperson mean to you

personally and professionally?

Thank you very much.

Becoming chairperson of the FPI Board is both an honour

and a responsibility that I do not take lightly. Personally, it is

deeply humbling to be entrusted with this role by my peers

and colleagues in the profession I have dedicated my career

What is your long-term vision and objective for the FPI, and

how do you plan to achieve these outcomes?

My long-term vision for the FPI is to position it as a globally

recognised professional body that sets the gold standard

in financial planning, while remaining deeply rooted in the

realities of South Africa. I want the FPI to be known not only

for excellence and ethics, but also for its impact on society and

ensuring that financial planning is accessible, inclusive and

transformative. achieve this, I believe in three key priorities:

Strengthening professionalism. Continuing to raise the bar on

issues such as ethical conduct, qualifications and continuous

professional development.

Driving diversity and inclusion. Building a profession that

truly reflects the demographics of South Africa and empowers

young talent from all backgrounds.

Expanding financial literacy. Partnering with all stakeholders

to make financial education a national priority.

This vision will be realised through collaboration, innovation and

consistent accountability. By working closely with our members,

stakeholders and international partners, I believe we can grow

both the profession and its contribution to the country.


FPI UPDATES | Membership news

How will you ensure effective governance and accountability

within the board?

Governance and accountability are the backbone of any

credible professional body. My approach is to build a culture of

transparency, robust oversight and collective accountability.

This means timely decision-making and embedding ethical

leadership at every level of the board’s work.

Practically, I will ensure that board discussions are rooted

in insights, and that performance against strategic priorities

is regularly reviewed.

I also believe in leading by example: holding myself to the

same standards of accountability that I expect of my fellow

board members.

What does financial planning mean to you?

To me, financial planning is about more than just budgets

and bank accounts. It’s about creating the possibility of a

better life. It is about taking control of your future, especially

when you come from a background where financial stability

wasn’t guaranteed.

Financial planning is a tool to break cycles of poverty. It’s

how families who’ve always struggled can begin to build

generational wealth, even if it starts small. It’s how someone

can move from just getting by to building something lasting

and something they can pass on. For many, including myself,

it’s deeply personal. It’s about changing the narrative, not

just for ourselves but for the people who come after us.

Additionally, financial planning has the possibility of

bringing dignity to people. It allows people to dream bigger,

to feel proud of what they’re building and to live with a sense

of security and self-respect.

In 2023, you won the FPI Diversity and Inclusion Award.

Please outline how you have fostered diversity within the

financial planning profession.

That recognition in 2023 was not mine alone. It reflected a

collective effort between multiple parties to make financial

planning more inclusive and representative of South

Africa. I have worked to break down barriers to entry for

underrepresented groups, champion mentorship programmes

for young professionals from diverse backgrounds and create

platforms where all voices can be heard.

For me, fostering diversity is not a tick-box exercise. It’s

about building a profession that mirrors the society we

serve; one where people of all races, genders, languages and

socioeconomic backgrounds feel they belong and can make

a meaningful impact.

Please outline the work you did as chairperson of the

Diversity and Inclusion Sub-Committee and the Human

Capital Committee at the FPI.

As chair of the Diversity and Inclusion Sub-Committee, I

focused on overseeing the embedding of inclusivity into the

DNA of the FPI. This included the launch of the FPI Education

and Training Fund Trust which was established to assist those

from the previously disadvantaged groups to be given the

opportunity to further their studies.

In leading the Human Capital Committee, my focus was on

both people and culture ensuring that the FPI not only attracts

and retains top talent, but also nurtures an environment

where staff feel empowered, valued and aligned with our

mission. Together, these committees worked hand in hand

to advance the FPI’s vision of being a profession that truly

reflects South Africa’s rich diversity.

Please discuss the importance of financial literacy and

inclusion in South Africa.

Financial literacy and inclusion are critical for South Africa’s

future. We live in a country marked by stark inequality, where

too many people remain excluded from the formal financial

system. Without financial literacy, even those with access

cannot fully participate or benefit.

Empowering South Africans with financial knowledge is

about dignity, security and opportunity. When individuals

understand how to budget, save, invest and plan for their

futures, they are better able to break cycles of poverty

and build intergenerational wealth. As the FPI, we have a

responsibility to not only serve our members but to champion

financial education as a cornerstone of national development.

What do you hope internal and external stakeholders

will say is different about the FPI one year from now because

of your leadership?

A year from now, I hope stakeholders will say that the FPI

has become more inclusive, more agile and more impactful.

Internally, I want our members to feel that their voices are

heard, that their profession is being advanced and that they

are better supported in delivering value to clients. Externally,

I want the public and policymakers to see the FPI as a trusted

partner in promoting financial planning, financial literacy,

ethical practice and consumer protection.

Ultimately, I hope people will say that under my leadership,

the FPI did not just maintain standards, but raised them,

leaving the profession stronger, more diverse and more

relevant to the challenges and opportunities of our time.


27

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Planning Career with the

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Scan the QR Code

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INVESTMENT | Economy

A changing world

This year, 2025, will go down in history as an important turning

point for the world.

The trends, policies and institutions that have been

established over the last 30 years have been turned

around and/or abandoned. The world is now gripped

by nationalism, protectionism and trade fragmentation.

At Citadel Asset Management, we thoroughly analyse these

developments and their effect on global financial markets,

so that we can support you, the financial advisor, around

the changes in global market structures and how they impact

your clients.

Changing trends

The period from 1990 to 2020 can best be described as one of

hyper-globalisation. China entered the global manufacturing

scene with a bang, and its ability to scale drove production

costs lower. As the new force in global manufacturing, China

enabled rapid increases in globally interconnected supply

chains. The overall lower production costs also “exported”

disinflation to the rest of the world, which had the impact of

keeping inflation under control and seeing interest rates around

the globe decline over the three-decade period. These lower

rates created fertile ground for capital-hungry tech startups

as they could secure long-term funding at lower rates than

ever before.

It is crucial to note that the global

shifts taking place are not cyclical.

As global trade increased exponentially, the US dollar found

itself at the heart of the global economy as it became the leading

trade settlement currency. Many foreign dollar receipts were

then left in the US and recycled to interest-bearing savings via

purchases of US treasuries. This process gave the US a massive

advantage by providing it with an enormous pool of funding

at exceptionally low interest rates. This capital funded US

growth, drove the dollar stronger and kept interest rates

under control.



Enter 2025 and US President Donald Trump – in one fell

swoop Trump introduced trade tariffs against the entire

world to restore lost manufacturing to the US and reduce the

US trade deficit. This action saw Trump alienate the US from

its global trading partners. It was as if the US did a “Brexit”

out of the world, instantly turning itself into an independent

island. China immediately seized the opportunity to start

negotiating trade agreements with the US’s estranged partners,

and all were too pleased to have such discussions without

the US. The US dollar also lost its status as the most trusted

global currency of settlement, and its share of global trade has

decelerated. While more than 50% of global trade is still settled

in dollars, its share is declining as fast as new trade relations,

that exclude the US, are established.

Global central banks also no longer want to maintain all

their reserves in US treasuries. Rather, they have switched to

the old-faithful: gold. Gold has been the biggest beneficiary

as the rise in geopolitical tensions drive sovereign-wealth-fund

and central bank purchases towards the safe-haven asset.

A resilient economy

Despite the increased trade tensions, the global economy is

more resilient than even the most positive outlooks could have

predicted at the beginning of the year. How can that be, you

may ask?

Two factors are driving the world economy right now:

declining interest rates, with the expectation of further cuts;

and Artificial Intelligence (AI). Trump did not contain his

wrecking ball to global trade partners; he is also attacking his

own central bank, the US Federal Reserve, to take control of its

interest rate policies. As such, both cyclical and political forces

are now trying to lower US interest rates, and the expectation of

lower interest underwrites gains in risk assets.

What does this mean for the investor and advisor?

In this rapidly evolving world, investors and advisors need to

change the way they work. They require:

• More diversification than ever before. Portfolios must be

robust and flexible as the period that lies ahead will be trickier

to navigate and be far more turbulent than what we have

experienced in 2025.

• Greater fiduciary responsibility as asset class choices, and

indeed the asset universe, grows.

• Long-term planning as assumptions and allocations change.

• Investment process discipline by both manager and investor

will be crucial. An investment portfolio without a tried-andtested

process will unravel over the next few years.

• Filtering noise from fact. There is a lot of disinformation

around which, unnecessarily, scares investors. Our task as

custodians of their wealth is to distinguish fact from fiction

and keep them prudently invested to reach their goals.

As advisors, it is crucial to note that the global shifts taking place

are not cyclical. They will not return to “normal”. Deglobalisation

is a structural change to the world economy and will impact

global financial markets for the next few decades. In this new

world, the value of a financial advisor that distills facts from

noise, who offers guidance rooted in professionalism, discipline

and context will be immeasurable.

We are experiencing a historical

mania around the capacity for AI.

At the same time, we are experiencing a historical mania

around the capacity for AI. The rapid capex into this sector

may prove to be a bubble in future, but it might also be the

underpinnings of one of the greatest evolutions for humankind.

Think of the evolutionary effects of the internet and smart

phones most recently, which were also called bubbles during

their infancy. The leaders in AI are now investing into each other,

further pushing their values sky-high.

George Herman, Chief Investment Officer, Citadel


31


3% Inflation could

change everything

A lower inflation benefit to society does not necessarily align with higher investment returns. How

should we consider the impact on financial planning?

The South African Reserve Bank (SARB) Monetary Policy

Committee (MPC) recently lowered interest rates

in line with expectations. However, the committee

commented that it was now aiming for the lower end

of the 3-6% target range for CPI, rather than the midpoint

of 4.5%, as previously communicated. The finance minister

cautioned against interpreting this as official policy, indicating

that a formal agreement between the SARB and Treasury was

still needed. Interest rate markets responded well to the news,

but corporate South Africa expressed concern that the apparent

misalignment on policy was not ideal for investor confidence.

In May 2025, SARB released a research study 1 with a central

core argument: a fixed 3% inflation target delivers lower

macroeconomic volatility, stronger growth and better inclusivity

than the current 3-6% range.

The next graph shows that although South Africa’s current

inflation is low and comparable to other developing countries

we compete with for business and investment, it has historically

been higher and more volatile. This uncertainty dissuades foreign

investors from committing new capital to South Africa.

The current range of 3% to 6% is seen as too high and too wide

to fulfil the growth ambitions of the economy. A lower inflation

target leads to lower structural interest rates and borrowing

costs in general, which is positive for growth in the country.

South Africa’s annual inflation vs peer group (Czech Republic, India,

Brazil, Indonesia, Philippines, Vietnam, Malaysia and Mexico).



season, for instance, is often linked to what you expect

inflation might be. Inflation has a strong element of selffulfilling

prophecy in determining its outcome.

• Cash rates fall. Investors need less compensation in interest

income if inflation and risks are lower. Similarly, credit spreads

tend to reduce, driven by lower perceived risk.

• Government bond yields fall to a new, lower structural level.

• The rand should in theory strengthen (or depreciate less

or not at all). Although real yields may decline, narrowing

the inflation gap with other global currencies could support

a stronger and more stable rand.

• Company earnings. While there are many moving parts, the

easy ones that you can expect are lower nominal returns,

similar real returns above CPI and, at least in theory, a stronger

growth base that could improve investment prospects for

domestic equity. For example, local banks can often earn

more when your home economy is growing as companies

seek funding to expand.

With the backing of this research study, the new 3% target

has been floated. How would a coordinated policy aiming for 3%

inflation, rather than 4.5%, impact investors in South Africa?

Two perspectives

Firstly, the impact on society. In this context, a lower target is

beneficial via:

• The growth dividend. Potential for ~0.3% to 0.5% higher

annual GDP growth over the medium term from improved

stability and lower funding costs.

• A fiscal benefit. Lower government borrowing rates

could reduce debt-service costs, freeing fiscal space for

development priorities.

• Inclusivity. Low-income households benefit from reduced

price instability, which has a disproportionate effect on

essential items.

Secondly, while these macroeconomic effects benefit society

overall, for IFAs and their clients they change the investment

return landscape in important ways. Let’s step through what

the implications for investments could be:

• Lower target inflation tends to drive lower inflation!

This may sound obvious, but price-setting ahead of a sales

Notably, in many of these cases, nominal returns may fall

despite real returns remaining relatively stable.

Local investors have enjoyed strong tailwinds compared

to global peers, with high bond and cash yields delivering

standout returns from traditionally “safe assets”. If you’re unsure,

consider this: a typical money market fund returned around

8.5% over the past year – well above inflation, which hovered

near 3%. That’s a 5% real return, compared to the long-term

norm of around 1%.

Government bonds have also delivered high returns, partly

because markets demand greater compensation for the risk

associated with South African government debt. As markets

recovered from previous lows, the bond market rewarded

investors with a strong 17% annual return to July 2025 – split

roughly evenly between income paid and capital growth –

driven by a more positive outlook on South Africa.

Many local investors lean

heavily on the expectation

of a depreciating currency

to boost domestic returns.

Financial planning implications

Given these dynamics, and the fact that a lower inflation benefit to

society does not necessarily align with higher investment returns,

how should we consider the impact on financial planning?

The industry goals of “creating, preserving and growing

wealth” all anchor around the cost of inflation eroding this

wealth over time and how we can overcome it. Portfolios are

then built, and financial plans develop around your expectations


33


of inflation. In South Africa, our inflation rate has averaged 5.8%

p.a. over the past 30 years and 5.1% over the past decade. It’s

understandable that many investors still assume a 5-6% CPI

range when building portfolios or financial plans.

Looking ahead, if South Africa targets 3% inflation to be

competitive among our peers, money market funds may offer

4-5% yields (not 7%), and bonds could settle around 7% to 8%

(rather than 10%). A 7% real return target on South African

equities would get you to 10% nominal return (the past 50 years

have yielded closer to 14% p.a.).

Another important aspect is the currency. Many local investors

lean heavily on the expectation of a depreciating currency to

boost domestic returns when they hold investments offshore.

In the scenario we’re painting above, this free ride is potentially

lost, along with a valuable risk management tool.

A long-term average inflation of 3% then could change

everything! And portfolios and plans may need to adapt.

There are structural reasons

to expect inflation to remain

elevated for now.

to 20% of the CPI basket and is running at around double

the CPI average.

• Inflation expectations are shaped by households,

businesses and markets. SARB cannot control them directly

but seeks to anchor them through consistent policy action

and communication.

• Fiscal and structural policies are within government control

and play a major role in long-term inflation dynamics.

So, for now, the policy seems to have merit and broad market

buy-in, but the ability to execute looks unlikely in the near

term. There are structural reasons to expect inflation to remain

elevated for now. It would be unwise to push too hard at this

point and any policy misstep may be punished by markets.

Still, expectations are beginning to form, and around that likely

anchor, we may start to see inflation expectations drift lower.

With the Treasury’s backing, we could be entering a new era of

monetary policy and fiscal management.

[1] Less risk and more reward: revising South Africa’s inflation target –

Christopher Loewald, Rudi Steinbach and Jeffrey Rakgalakane

Outlook

We are not there yet. The success of this prospective change

in the CPI target rests on a few things: the “social compact”

needed to align government, labour and business with lower

inflation and wage growth rates; and the structural reforms

needed in government and policy.

Broadly speaking, SARB has limitations on what it can

control with respect to the target. These are the main areas:

• External drivers such as the rand level or oil price are

influenced as much by other economies as by domestic

factors. SARB has limited control, though maintaining a

more stable rand helps.

• Administered prices like electricity, water and education,

etc are partially controlled by the government but require

significant attention and good management to maintain

lower costs in future. This component is estimated at 15%

Peter Foster, Chief Investment Officer, Fundhouse


PRACTICE MANAGEMENT | Operations

How to build a successful

investment practice

How do you build a successful investment practice? With more than 30 years’

experience in the investment industry, Kritz Koetzee, Head of Business Development

– South, Glacier by Sanlam, has some insights to share.

Successful investment practices have these attributes and

adhere to some key principles:

• Building the investment client base takes time – it

doesn’t happen overnight but be assured all practices

have access to investment clients.

• Investment business requires care, nurturing and attention.

• Building an investment book is possible if you stick to the

basics and you are thorough.

• Don’t over-engineer solutions or become overly inventive.

• Successful intermediaries never forget that they are working

with their clients’ money.

Define your value proposition

in terms of your purpose.

Tips to build your successful investment practice

1. Promise nothing and manage your clients’ expectations.

2. Your risk profile should not reflect in your client’s risk profile.

3. FAIS is your friend – err on the side of caution and compliance.

4. Your client’s lack of retirement savings is not your fault.

While you have great empathy for their situation, you can’t

create retirement income that your client cannot afford. If

your client doesn’t accept this, be prepared to walk away.

5. Regular communication with your client is a critical

ingredient in good relationships. During the Covid lockdown,

the intermediaries who survived and thrived were the ones

who reached out to their clients often.

6. Any mistake in constructing a portfolio can cost your client

money – approach this practice with care. Discretionary fund

managers can help.

7. Know who you are and the job you must do. It is difficult to

be an advisor and an asset manager, although you need to

understand both worlds implicitly. Stick to your skills as an

advisor and hone them to the point of excellence. Let other

experts take care of asset management.

8. Choose your investment clients carefully. They cost you

money to service.

9. Define your value proposition. Offering lower fees is not

a value proposition. Neither is switching funds nor offering

performance. They all contribute to the outcome. Define your

value proposition in terms of your purpose.

10. Ensure that your practice can deal with all your clients,

whether you are present or absent.

11. Investment knowledge is key to your profession, so keep

learning. Listen, read, engage and enhance your insights –

these activities are critical to improving your skill set.

12. Ensure that the platform you choose is reputable and

supports your value proposition. Sustainability, functionality,

fund choice, rigorous research and with an agnostic approach

– these are characteristics to look for in a great platform.

13. Focus on a market segment. You have the potential to

become a specialist in that area, and it helps in building a

reputation and getting referrals.

14. Really get to know your clients. This will help inform your role

as a financial advisor.

15. Build your business with its future in mind. Your current

clients’ beneficiaries and nominees present a potential future

client base for you. Get to know beneficiaries and nominees

equally as well as your clients.

16. Educate your clients about investments while they are on

their savings journey. Host in-person or online engagements

where they get to know you and the value that you add to

their lives. Trust is built this way. Informed clients are easier

to engage with, especially when market returns are volatile.

17. It’s not only about the funds you choose but also about the

tax structure. Tax planning on its own adds tremendous value

as a basis for investment planning.

18. Successful investing is about diversification and combining

solutions, not merely products, to create the best outcome

for your clients.

Glacier Financial Solutions (Pty) Ltd is a licensed financial services provider. Sanlam Life Insurance Ltd is a licensed life insurer, authorised financial services provider and registered credit provider (NCRCP43).


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Glacier Financial Solutions (Pty) Ltd is a licensed financial services provider. Sanlam Life Insurance Ltd is a Licensed Life Insurer,

Financial Services and Registered Credit Provider (NCRCP43).

INVESTMENT | Gold

Should you invest in gold?

Does gold warrant a place in a diversified investment portfolio? Michael Mgwaba, Head of Exchange Traded

Products at Absa CIB, ran the numbers to find a definitive answer to the age-old debate.

Does gold warrant an allocation in a diversified portfolio?

The question has no simple or universally agreedupon

answer, and the debate is complicated by the

contrasting opinions published by media outlets and

investment firms.

Views diverge significantly, even among highly respected

investors. Bridgewater investment manager, Ray Dalio, strongly

advocates for gold as a strategic hedge, saying, “There is no

sensible reason not to own gold”; while Berkshire Hathaway

chairperson, Warren Buffett, has historically been sceptical of

its investment value. These differing perspectives highlight the

importance of context, investment objectives and risk appetite

when considering gold’s place in a portfolio.

To address whether gold warrants a place in a diversified

portfolio, we deliberately moved beyond theoretical drivers of

gold performance, such as inflation or global risk sentiments,

and focused on practical and investor-relevant comparisons,

specifically:

• The difference between investing in physical gold versus gold

mining stocks

• How gold compares with other asset classes in terms of

performance and volatility

• The influence of the USD/ZAR exchange rate

• Gold’s contribution in the context of a South African multiasset

portfolio construction

This approach provides a more grounded view of gold’s real-world

impact on a portfolio outcome.

Physical gold vs mining stocks

Gold exposure in the South African market can be accessed

through various instruments, including gold mining stocks,

physically backed ETFs (such as NewGold), bullion coins (like

Krugerrand), gold futures and other derivatives. While mining

equities represent an indirect approach and are still the most

common method, physically backed ETFs are considered a more

direct and cost-efficient method.

The suitability of each option depends on the investor’s

strategy, whether the intent is strategic asset allocation, tactical

position or income generation.

We evaluated the performance of gold mining stocks relative

to physical gold, using London Bullion Market Association (LBMA)

gold prices as the reference. For further insight, we compared

gold price performance with the JSE Gold Mining Index Total

return, covering the period from 31 July 2007 to 26 May 2025

(approximately 215 months).

We found that gold outperformed gold mining stocks in

cumulative returns over the period, making it an especially

attractive option for long-term investors.

Asset class performance

We then compared gold’s performance to local and global asset

classes commonly used in diversified South African portfolios. Our

goal was to assess whether gold could complement or potentially

substitute other core holdings. The market benchmark indices

were used to represent the performance of each asset. The data

used covered the period from 31 December 2003 to 26 May 2025.

The results of our analysis indicated that, on a cumulative return

basis, gold has consistently delivered positive performance. Over

the long term it has outperformed all other asset classes included

in this analysis, as shown in the graph.


INVESTMENT | Gold

This trend may be particularly appealing to a long-term

investor who is seeking a stable and consistent return. It reinforces

the case for giving gold serious consideration in portfolio

construction. However, while these findings are compelling, they

are not conclusive in isolation.

Foreign exchange vs gold price

The value of gold as an asset class reflects both its underlying

performance and the influence of the USD/ZAR exchange rate.

Our analysis aimed to quantify the extent to which exchange rate

movement contributed to the rand value of gold.

Our analysis of excess rolling 36-monthly returns shows that, in

most instances, a South African high equity multi-asset portfolio

with a 5% or 10% allocation to gold delivers stronger performance

compared to a portfolio with no gold exposure.

We considered the risk-return profiles of South African multiassets

with and without gold allocation, across varying equity

exposure aligned with high-, medium- and low-risk appetites.

The findings indicated that the inclusion of gold enhanced overall

portfolio performance.

Our analysis revealed that, from 31 December 2003 to 26 May

2025, gold tended to outperform the USD/ZAR exchange rate.

However, the exchange rate itself had little influence on the

asset valuation.

SA multi-asset portfolio

Formulating a South African strategic asset allocation involves

setting long-term portfolio weights across major asset classes,

tailored to South African market dynamics, macroeconomic

conditions and investor objectives. The building blocks of the

general portfolio include cash (STEFI 3 Month Index), South

African equities (FTSE JSE All Share Index TR Value), international

equities (MSCI All Country World Index TR Gross), property (FTSE/

JSE SA Listed Properties TR Index, SA Bonds (FTSE/JSE ALBI TR

Index), international bonds (Bloomberg Global Aggregate Bonds

TR Index) and alternative assets (gold).

We added allocations of 5% and 10% to gold in our

hypothetical portfolio, with our data points covering the period

from 31 December 2003 to 30 April 2025. We used 36-month

performance, as it aligns with how asset allocators assess

consistency and strategic effectiveness.

Gold’s place in a multi-asset portfolio

In conclusion, our analysis strongly supports the inclusion of gold

in a South African multi-asset portfolio. Across varying levels of

equity exposure, reflecting different investor risk profiles, the

addition of a 5% to 10% gold allocation consistently improves

portfolio performance, particularly when assessed over rolling

36-month periods.

This performance uplift is driven by gold’s role as a diversifier,

inflation hedge and safe-haven asset – especially in the local

context marked by rand volatility, inflation risk and periodic equity

market stress. Given the consistency of these results, we believe

that all investors, regardless of risk appetite, should consider a

strategic allocation to gold as part of a well-balanced portfolio.

Michael Mgwaba, Head of Exchange Traded Products,

Absa CIB

INVESTMENT | Cryptocurrency

Bitcoin in South African portfolios:

why a small allocation makes sense

Bitcoin has matured into an asset class that major institutions and even local regulators are recognising.

Financial advisors have several routes to help clients gain

Bitcoin exposure in a responsible way. Three of the most

accessible options are:

• Direct Bitcoin purchases via local exchanges. Investors

can buy Bitcoin directly through FSCA-licensed South

African crypto exchanges like Luno or VALR. Clients can

purchase Bitcoin in rand on these platforms and then

secure the holdings in cold storage (offline wallets) to

mitigate exchange custody risk.

• Bitcoin investment funds and ETFs. For clients who prefer

traditional investment vehicles, there are Bitcoin-linked funds

available to South Africans. Discovery Invest launched a Bitcoin

Fund in 2024, giving investors rand-denominated exposure to

Bitcoin via BlackRock’s iShares Bitcoin ETF.

• JSE-listed Bitcoin companies. Another avenue is buying shares

of JSE-listed companies that hold Bitcoin on their balance

sheet. A prime example is the Africa Bitcoin Corporation (ABC) –

formerly Altvest Capital – which is positioning itself as “Africa’s

first Bitcoin treasury company”, accumulating Bitcoin to

preserve value. By investing in a company like ABC, clients get

indirect Bitcoin exposure in a fully regulated, rand-denominated

equity format.

Small allocations

An emerging consensus from investment experts is that a minor

allocation to Bitcoin (1% to 5%) can be a sound diversification

move. Major financial institutions and respected voices have

shifted from scepticism to endorsing a sliver of crypto exposure:

• Global institutions. Firms like BlackRock and Fidelity have

published frameworks for including Bitcoin in portfolios. The

BlackRock Investment Institute recently noted that a 1% to 2%

allocation to Bitcoin in a traditional 60/40 portfolio is “a

reasonable range for a Bitcoin exposure” that won’t overly

increase overall risk.

• Local voices. Even without wholehearted enthusiasm, some

South African experts agree that a modest Bitcoin allocation can

make sense as part of a well-balanced portfolio.

Benefits of JSE-listed Bitcoin exposure

Gaining Bitcoin exposure through the JSE offers several benefits:

• Regulated environment. JSE-listed companies and funds must

comply with local financial regulations and disclosure standards.

• Rand-denominated convenience. Investing through local

exchanges or JSE listings means transactions and holdings are

in rands.

• Familiar structures and custody. The complexity of custody is

handled by the product issuer or the company.

40


Regulatory considerations in South Africa

• FSCA’s stance. South Africa’s Financial Sector Conduct Authority

(FSCA) has moved to bring crypto assets into the regulatory

fold. In October 2022, the FSCA declared crypto assets to be

“financial products” under South African law.

For financial planners, this development is critical – it provides

security when recommending crypto investments, and it

requires that advice on crypto be given by properly licensed

professionals.

• Tax treatment. The South African Revenue Service (SARS) has

made it clear that normal tax rules apply to crypto investments.

Cryptocurrency is treated as an intangible asset for tax

purposes, not as currency. This means that gains are subject to

capital gains tax or income tax depending on the nature of the

investment.

Advisors should stay updated on any changes, but as of now

the message is: Bitcoin is legal and viable to include in portfolios,

provided one follows the regulatory requirements and tax

reporting rules.

Conclusion

For the forward-looking financial planner, Bitcoin represents a

unique blend of high risk and reward that, in a small dose, can

enhance a portfolio’s diversification and return prospects. By

allocating on the order of 1% to 5%, planners can position clients to

participate in the upside of this new asset class without jeopardising

the core of the portfolio. South Africa’s investment landscape is

catching up with global trends: investors can now access Bitcoin in

rand, under local regulation, and even within traditional products.

The key for advisors is to approach Bitcoin professionally – educate

clients, use reputable platforms, adhere to regulations and size

positions appropriately.

Sources

Discovery Invest media release (2024)

Daily Investor – Sasfin analysis of 10-year returns (JSE ~7.1% vs offshore)

CoinDesk – FSCA licensing of crypto platforms (Luno, VALR in 2024)

TechCentral – Altvest (Africa Bitcoin Corp) adopting Bitcoin treasury strategy

CoinDesk (via Bitget News) – Bitcoin vs gold and stocks long-term returns

(2011–2025)

Fidelity research

BlackRock Investment Institute

FindanAdvisor.co.za

SARS guidance – tax treatment of crypto assets in South Africa

FSCA announcement – classifying crypto as a financial product (Oct 2022)

Stocks for the long run

But what’s the catch?

For advisors working with clients who are building or

drawing on retirement portfolios, one question comes up

over and again: Why equities? The answer is simple, but

not always easy. Equities remain the most powerful engine

for delivering long-term returns, but the asset class requires

investors to withstand the volatility that comes with the territory.

The power of compounding

Take the S&P 500 Index as an example. Looking back over 45 years

to 1980, the Index has compounded at just over 12% per year. That

is a phenomenal rate of return over such a long horizon. Using the

“rule of 72”, at a 12%* growth rate, your money doubles roughly

every six years. Over 45 years, that works out to more than seven

doubling periods. Put differently, $1-million at the start of the

journey would have grown to around $180-million today!

This is why we often say equities are for the long run. They are

unmatched in their ability to grow wealth meaningfully over time.


INVESTMENT | Equities

Consistency matters

But it is not just the headline number (12% per year return since

1980 for the S&P index) that makes the case compelling. Over

the same 45-year period, three out of every four calendar years

delivered positive returns, resulting in a 75% hit rate. When paired

with the high long-term compounding rate, this makes equities

uniquely attractive.

For clients, this message is important: most years have been

rewarding. But the real magic lies in the fact that patient investors,

who stayed invested through the cycle, benefited from the full

compounding power of the market.

The catch: volatility

Of course, there is a catch. Equities are not a smooth ride. Every

single calendar year since 1980, the S&P has experienced a

drawdown. And the average fall from peak to trough within the

year has been around 15%.

The price of admission

The lesson is clear: volatility is the price of admission for long-term

equity returns. To access those 12% compounding rates, investors

had to live through short-term uncertainty every single year. And

there is no reason to believe this pattern will change. Another crisis

will come. Another severe market sell-off will happen.

For clients, the real question is not if they can handle volatility,

but how they will respond when it comes. Do they have the

fortitude to stay invested? And perhaps even more importantly,

are they aligned with a manager who has the experience, discipline

and research capability to use volatility to their advantage?

What this means for advisors

As an advisor, your role is to help clients understand both sides

of the equation. On the one hand, equities have delivered

extraordinary long-term returns and are likely to remain the

cornerstone of wealth creation. On the other hand, the path is

never linear. Annual drawdowns are not a bug of the system –

they are a feature.

For retirees or clients investing for income and growth, the

balance is even more delicate. Equities provide the growth

engine needed to protect purchasing power against inflation.

But they must be combined with income-generating assets and

a disciplined multi-asset process that can cushion some of the

volatility while still capturing long-term upside.

The bottom line

Equities remain the asset class most likely to deliver meaningful

real returns over time. But the journey is punctuated with periods

of discomfort that can tempt clients to abandon course. Helping

clients understand this trade-off and positioning them with

managers who can harness volatility rather than fear it, is one of

the most valuable roles you can play.

In a world where the next crisis is always just around the

corner, the real differentiator is not predicting the exact timing of

downturns, but preparing clients to stay invested when they arrive.

Equities reward those who endure.

*Source: Bloomberg, compounding at 12.1% p.a.

That means that even in years that ended up strongly positive,

investors often had to stomach being on the brink of a bear

market, or worse. For advisors, this is where behavioural coaching

is critical. The market headlines, the pundits declaring that

“this time is different” and the fear that comes with opening a

brokerage statement in the middle of a downturn can all test

clients’ resolve.

Neil Padoa, Head of Global Developed Markets,

Coronation Fund Managers


43


Africa’s trillion-dollar decade:

don’t miss the boat

Look past the headlines of global uncertainty, and a different story is unfolding. Africa is building

momentum that could define the next 10 years. This is not a distant dream; it’s already happening.

From the persistent drag of inflation, currency devaluations

and rising debt costs to the fresh shocks of new US tariffs

and swift retaliatory measures from its trading partners,

the global economy has become increasingly uncertain.

And yet, Africa’s growth story is gaining momentum.

The continent is home to 54 countries, more than 2 000

languages and an unmatched cultural diversity. Africa’s aggregate

GDP is projected to exceed $3-trillion in 2025 (IMF). Out of its 54

countries, 29 recorded growth in 2024, and in 2025, 21 are expected

to achieve at least 5% growth. Four (Ethiopia, Niger, Rwanda and

Senegal) are forecast to surpass 7%, according to the African

Development Bank.

Africa’s growth is projected to improve from 3.3% in 2024 to

3.9% in 2025 and further to 4% in 2026 – a steady climb that

highlights the continent’s resilience. By contrast, the IMF expects

global growth to slow to 2.8% in 2025 (down from 3.3% in 2024),

with advanced economies growing at just 1.4%.

Africa’s resource wealth – its minerals, rivers, arable land and

forests – is immense. It is also the world’s youngest continent,

with more than 70% of its people under the age of 30, according

to the UN. Added to this is rapid urbanisation: by 2030, at least 17

African cities are expected to have populations of over five-million

and three will exceed 10-million (Brookings).

Africa’s biggest growth catalyst

The African Continental Free Trade Area (AfCFTA) is a vision of a

connected Africa. Today, it links about 1.4-billion people and a

market worth $3.4-trillion. By 2030, that market is expected to

almost double to $6.7-trillion, driven by a population of 1.7-billion,

with half of that economic weight concentrated in South Africa,

Nigeria and Egypt (Brookings). What makes this remarkable

is the unity behind it: all 54 African nations have signed on,

and 48 had ratified by early 2025, implying focus has shifted

to implementation.

Launched in May 2019, the AfCFTA’s central goal is bold but

simple: to create one integrated African market for goods,

services and capital, unlocking the power of intra-African trade.

In 2024, trade within Africa accounted for 16% of the continent’s

total exports, with most goods – mainly raw commodities – still

shipped abroad (UNCTAD). Labour mobility tells a similar story: only

28% of intra-African travel is visa-free, up from 20% in 2016 (Africa

Visa Openness Report).

What could the AfCFTA deliver if fully implemented? According

to a 2022 World Bank report, the potential gains are transformative:

• Real income could rise by 8% by 2035

• A total of 30-million people lifted out of extreme poverty and

68-million out of moderate poverty

• Continental income could grow by $450-million (7%) by 2035

• Intra-African trade could surge by 109%, with total exports

expanding by 29%

• Foreign Direct Investment (FDI) – a key source of capital,

technology and skills – could climb by 111%

To unlock these gains, Africa will need a continent-wide push to

implement the right policy framework for e-commerce, trade,

investment and intellectual property. Just as important is the

hard infrastructure to support it. Across energy, ports, roads

and power, the gaps remain stark, with the UN estimating

annual investment needs of $130-billion to $170-billion. Trade

continues to be slowed by non-tariff barriers, fragmented customs

processes and inconsistent governance.

As global trade grows more unpredictable, we believe Africa’s

best response is to double down on self-reliance by prioritising

the AfCFTA implementation.

Where does Mazi fit in?

At Mazi, we see Africa’s growth story as a reality already unfolding.

Our Mazi Africa Equity Fund invests in public equities across

the continent, excluding South Africa, and provides investors

straightforward access to this growth opportunity. We believe

this exposure offers South African investors meaningful

diversification benefits.

Building on this, we are preparing to launch an African Bond

Fund, expanding investor access to the continent’s capital

markets. Alongside it, our Mazi Infrastructure Fund is directing

capital towards essential power and water projects, while our

private equity and credit vehicles create

further avenues to participate in Africa’s rise.

Africa’s trillion-dollar decade is already

in motion. For investors, the question is no

longer if the opportunity is real, but how soon

to participate.


Moses Njuguna, Analyst at

Mazi Asset Management

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FINANCIAL PLANNING | Retirement

Blending annuities

A strategic approach to help retirees navigate retirement income challenges.

As a financial advisor, you are often required to help clients

navigate an emotional and financially complex journey:

retirement. The challenge to convert life savings into an

income stream that will last a lifetime is no easy task. It is

described by well-known economist and Nobel laureate, Professor

William F Sharpe, as “the hardest, nastiest problem in finance”.

There is a bit more to it than simply selecting a balanced fund,

choosing a low drawdown rate and hoping for the best.

Human behaviour collides not only with the uncertainty

of future market performance, but also with the unknowable

timeframe of how long income should last.

Living annuities are a popular option for retirement income

planning, valued for the flexibility and control they provide. Yet,

they come with significant emotional challenges. Retirees worry

about withdrawal rates or about withdrawing too much, they

wonder whether their savings will last or whether they will become

a financial burden on their family, instead of leaving a legacy. It is

easy to underestimate or even dismiss this emotional burden and

only focus on the financial side of the challenge, but the struggle

is real and each retiree will respond differently to the fear and

uncertainty.

Herein lies the challenge for advisors to deliver retirement

income solutions that offer retirees the right balance between

flexibility, control and peace of mind based on their unique

situations, preferences and attitudes to risk.

It is important to acknowledge that we cannot solve insurance

problems with investment tools and vice versa. The risk of living

long is fundamentally an insurance problem. Guaranteed life

annuities are insurance tools, specifically designed to address

the financial risk associated with longer lifespans. They are the

only financial products that perform better the longer you live,

offsetting the associated financial cost of living another day.

However, the risk of outliving retirement savings is a complex

combination of investment and insurance problems and is unique

to every retiree.

On the one hand, you have wealthy retirees who can stomach

market risk and meet their income needs at very low drawdown

levels and from other sources. Living annuities are designed to

offer these clients with a tax-efficient post-retirement solution to

preserve wealth for their beneficiaries.

On the other hand, you have clients who cannot afford to

take on any market or longevity risk. These clients must prioritise

a reliable income over leaving a legacy for their own benefit.

Guaranteed annuities are specifically designed to address the

needs of these individuals.

According to our research, around one-third of retirees fall into

each of these categories. This then leaves us with one-third of

retirees who can afford to take on some risk to maximise both their

income and legacy objectives in retirement. The optimal solution

in this situation is to blend a living annuity with a life annuity.

Don’t fall for the myths

People incorrectly believe that expected capital legacy is reduced

when you blend annuities. An award-winning technical paper [1] on

this topic proves that combining a living annuity with a guaranteed

annuity is the most effective retirement income strategy. The

findings are profound, and sometimes counterintuitive. A

blended approach lowers the risk of outliving savings, increases

the expected total lifetime income and maximises the potential

for capital legacy. A retiree can consume more, with less risk and

expect to leave a larger legacy in a blended annuity compared to

a traditional living annuity.

The challenge to convert

life savings into an income

stream that will last a

lifetime is no easy task.

The case for blending as a value-add

When done correctly, blending annuities activates a cascade

of compounding forces that bring together the best of both

worlds in one powerful solution. The strategy is gaining traction

among forward-thinking advisors as it allows risks to be managed

efficiently using appropriate tools, thereby:

• Increasing the expected income over a client’s lifetime.

• Increasing the expected capital legacy at death.

• Reducing the exposure to longevity and sequence of

returns risk.

• Retaining real (not perceived) flexibility.

The knowledge that a portion of

retirement income is guaranteed

for life, regardless of what

happens to the markets or how

long your client (and/or their

spouse) may live, provides the

final, and arguably, the most

important part of the overall

solution: peace of mind.

1 The retirement income frontier

and its application in constructing

investment strategies at retirement,

Anderson, Empedocles, 2016

Johann Swanepoel, Head

of Pricing and Proposition,

Just SA


Two annuities.

One stronger retirement

income strategy.

Blending a living annuity

with a life annuity helps

clients enjoy flexibility today

and security tomorrow.

As a financial adviser, you know that

retirement income isn’t just about returns.

It’s also about resilience. A living annuity

offers control, but it also comes with risks:

market volatility, inflation, and longevity.

By blending with a life annuity, you can

offer clients:

A guaranteed baseline income for life

Reduced drawdown pressure

Greater peace of mind

living

annuity

life

annuity

Let’s build better retirements together.

Just SA is a retirement income specialist offering an innovative

range of lifetime income that provides a sustainable income in

retirement. Find out more at justsa.co.za

Just Retirement Life (South Africa) Limited is a registered life insurance company, regulated by the

Prudential Authority of the South African Reserve Bank and the Financial Sector Conduct Authority as an

authorised financial services provider (FSP no. 46423). We are a wholly owned subsidiary of Just Group plc,

one of the UK’s leading providers of retirement financial solutions.

FINANCIAL PLANNING | Estate planning

Legacy with purpose: empowering

South Africans through knowledge

Siyasanga Kashe is a force for change in South Africa’s employee benefits landscape. As executive for member

solutions at Momentum Corporate, she brings both strategic insight and heartfelt commitment to making

financial wellness accessible to all.

Siyasanga, please outline your career trajectory to this point.

I started my career in financial services about 20 years ago, working

for two major insurance companies in various roles. My focus was

primarily on customer experience, project management, operations

and IT. Seven years ago, I joined Momentum, initially as Chief

Operating Officer for our Momentum International business,

which operates across the rest of Africa.

In that role, I oversaw operations, IT, marketing and customer

experience. I also ran the project management office for a time,

which naturally fell under operations and IT, particularly in areas

like digital transformation and data management.

Just under two years ago, I transitioned to Momentum

Corporate, where I serve as executive for member solutions. We

provide solutions for members of retirement funds and employee

benefit schemes. It’s a role I truly enjoy because I’m passionate

about making employee benefits accessible to all employed

South Africans. I’m also deeply committed to educating and

empowering communities to make better financial choices – and

this role allows me to do just that.

Legacy planning is about more

than just assets; it’s about dignity.

We focus on financial wellness, offering value-added services

like employee assistance programmes, access to therapists and

wellness coaches and pension-backed home loans. I also serve

as CEO of pension-backed home loans, which is another avenue

through which we help members unlock financial opportunities.

How do you perceive the importance of understanding the

benefits beyond just a will when it comes to legacy planning –

especially in the South African context?

Legacy planning goes far beyond drafting a will. First and

foremost, South Africans need to understand that they have the

right to bequeath their assets as they wish. Unfortunately, many

communities still believe that wills are only for the wealthy. That’s

simply not true.

Wills are for everyone. It’s essential to understand how they work

and to ensure that your assets are distributed according to your

wishes – not left to be determined by intestate succession. Legacy

planning is about more than just assets; it’s about dignity, care

for loved ones and ensuring your wishes are fulfilled. It’s about

the story you leave behind and how it’s managed.

Financial advisors are not

just for the wealthy.

How should financial advisors help their clients be proactive

about legacy planning?

Financial advisors often have strong, trusted relationships with

their clients. That’s why they’re perfectly positioned to guide clients

through legacy planning. The first step is ensuring that they have a

valid and executable will.

It’s easy to focus on selling policies, but sometimes the

conversation about having a valid will falls short. Advisors should

make sure clients understand the importance of up-to-date

beneficiary nominations for retirement benefits and how estate

planning can be optimised from a tax perspective.

They should also help clients assess whether their estate has

sufficient liquidity. Without it, executors may be forced to sell

assets below market value just to settle debts. That’s not the legacy

anyone wants to leave behind.

Please share your thoughts on the significance of regularly

updating beneficiary nomination forms and how life changes

may affect these decisions.

Updating beneficiary nomination forms is simple but often

overlooked. Life gets busy or people don’t realise the impact of

not keeping these forms current. Yet they’re crucial, especially for

group life assurance benefits, because they dictate who receives

insured benefits when you pass away.

These forms also help trustees identify your dependants when

processing claims. Regulation 7C governs this process, and while

trustees may not follow your nominations to the letter, having

them in place speeds things up significantly.

Without nominations, trustees must conduct investigations –

checking bank statements, identifying dependants and piecing

together your financial relationships. It’s a lengthy process. That’s

why it’s so important to update your beneficiaries regularly,

especially after major life events like marriage, divorce, having

children or starting a business. It’s usually a quick and easy update,

and your advisor can help you through it.



What role do trustees play in ensuring that your retirement

benefits are allocated fairly, and why is it important for

financial planners to be aware of their responsibilities?

Trustees carry a significant responsibility. They must ensure

that your retirement benefits are distributed fairly, with priority

given to those who were financially dependent on you. For

financial planners, it’s vital to ensure that trustees have accurate,

up-to-date information about your dependants.

This helps prevent delays in the distribution of death benefits.

Advisors should also educate clients about the time it may

take to settle benefit payouts and ensure that surviving family

members have access to liquid assets in the interim.

Managing expectations is key. If clients understand the

process upfront, they’re less likely to become frustrated. Advisors

should also ensure that estate planning includes provisions

for immediate income, so families aren’t left struggling while

waiting for the full payout.

clear: financial advisors are not just for the wealthy. They are

accessible to everyone.

Meeting with an advisor doesn’t cost anything. And thanks

to POPIA, all personal information and discussions are protected.

Advisors are there to guide you, not to judge you. Ultimately,

the decisions are yours, but it’s important to be informed and

to know what’s available to you.

Estate planning may require a more complex discussion with

a financial advisor.

Death doesn’t have an age.

Another important point: most people only start thinking

about wills and estate planning as they approach retirement.

But death doesn’t have an age. A 25-year-old entering the job

market should already be thinking about these things. The

moment you start working and accumulating assets, it’s time

to speak to a financial advisor and begin planning your estate.

You can always revisit and update it as your life evolves. As

you know, in the world that we live in, anything can happen to

anyone at any age.

It is possible to draw up your will online for free. The majority

of South Africans need a basic will. They are either misinformed

about the process, do not understand the necessity or avoid

the topic.

Many people avoid talking about death. They generally do

not want to face their finality. It’s either they think it’s expensive

or it's not their time – it’s uncomfortable and drawing up a

will is often seen as expensive or unnecessary. But avoiding the

conversation doesn’t make the need go away.

Some people think they don’t have anything to pass on.

That’s where financial advisors come in. They can guide you

through what you do have, and how to protect it. And let’s be

Siyasanga Kashe, Executive for Member Solutions,

Momentum Corporate


49


Legacy planning: an act of care

In South Africa, the complexities of cultural and economic factors can make dealing with loss even

more challenging. That’s why being proactive about legacy planning is so important. Siyasanga Kashe,

Executive Member Solutions at Momentum Corporate, shares five key guidelines to assist you in

safeguarding your legacy.

You might think a will is all you need, but there are often

more layers to consider, especially with retirement

benefits and other assets. By planning, you’re not just

preparing for what happens next; you're providing a

sense of security for your family.

1. Understand your benefits beyond your will. Many people

incorrectly assume that their will dictates how all their assets

will be distributed. However, retirement benefits, such as those

from your provident or pension fund, are governed by Section 37C

of the Pension Funds Act. This law ensures that your benefits are

allocated fairly to those who were financially dependent on you

when you passed away. The board of trustees of the fund has the

ultimate authority over who receives these funds, regardless of

what your will or nomination form states.

Checklist

• Understand which of your financial products can be paid in

terms of your will and those that cannot be.

• Check the beneficiary rules for your retirement fund, life

insurance and other policies.

• It is important to know who the trustees of your retirement

fund are and how they operate.

2. Update your nomination form. Your beneficiary nomination

form is an important guide for the fund’s trustees, but it does

not solely determine how your retirement benefits are paid out.

This form helps the trustees understand your wishes and identify

those who relied on you financially. If your nomination form is

outdated, it leads to confusion and delays in receiving your

retirement benefits, which may cause family disputes during a

difficult time.

Checklist

• When was the last time you updated your beneficiary

nomination form?

• Have there been any important life changes since your

last update?

• Have you clearly indicated the full names, identity numbers

and contact details of your dependants and nominees?

and beneficiaries in a fair manner. They are required to do a

thorough investigation to identify all your dependants or

beneficiaries, including spouses, children and anyone else who

was financially dependent on you. The purpose of this process is

to protect dependants and beneficiaries, even if they were not

stated on your nomination form.

4. Planning for life’s unexpected events. A legacy plan that

worked for you in your younger age may not be suitable in this

current day or at a later stage. Whether you are getting married,

having a child or starting a business, each new chapter requires

that you revisit your financial plan. Taking early action will

ensure that your plan remains relevant and reflects your current

wishes and responsibilities.

Checklist

• Do you have an up-to-date will in place?

• Have you had an open conversation with your family about

your financial wishes?

• Do you have a financial advisor to help you prepare your

retirement fund with your broader estate plan?

5. Changing your mindset from admin to action. Talking about

death and finances is uncomfortable, but ignoring these

discussions creates additional challenges for your loved

ones. By updating your financial plan, including your will and

beneficiary nomination forms, and understanding the necessary

processes, you’re doing more than just filling out paperwork;

you’re offering your family and loved ones clarity and security.

This preparation helps them navigate a complex and stressful

financial situation during a difficult time.

“Ensure your family’s wellbeing by avoiding the pitfalls

of outdated information or forms. Take proactive steps today

to protect the legacy you’ve worked so hard to create,”

advises Kashe.

3. The role of trustees. The trustee’s main duty under Section 37C

is to ensure that your death benefits are paid to your dependants


FPI UPDATES | Estate planning

A will is not

a commodity

Plan before you draft.

There is a focus on wills every year in the third quarter

with some professionals offering free wills. The good

part of this is that it is a focus on wills. However, this has

an unfortunate side effect – it commoditises the last will

and testament.

A last will and testament is not something you buy at a

supermarket shelf. Making a will should be the result of a process

of estate planning, which in turn is part of the bigger process of

financial planning. I hear you say estate planning is for the ultrawealthy.

Nothing could be further from the truth. To start with

drafting a will is to start at the wrong end, no matter if your estate

is worth R100 000 or R100-million.

Drafting and executing a legally binding will should be easy,

yet the courts are approached regularly to condone documents

which appear to be intended as wills, but which fall short of the

formal requirements for the execution (signing) of a legally valid

will, as set out in section 2 of the Wills Act, 7 of 1953.

In a recent case, a retired constitutional court judge was

apparently unaware that a will cannot be signed electronically

(Mokgoro v Master of the High Court, Kimberley [2025] ZANCHC 60).

There are also cases where financial advisors and accountants

neglect to ensure that the will is signed in accordance with the

requirements set out in the Act.

In one of these matters, which went all the way to the

Supreme Court of Appeal, (Raubenheimer v Raubenheimer [2012]

ZASCA 97), Judge of Appeal Leach remarked, “It is a never-ending

source of amazement that so many people rely on untrained

advisors when preparing their wills – one of the most important

documents they are ever likely to sign.”

Unfortunately, it seems many who could be regarded as

trained still do not pay sufficient attention to the requirements

for executing a valid will. In Raubenheimer, a financial advisor

signed as witness with the testator, but had one of his staff sign

as second witness the next day in another city, while in Delport v

Le Roux and Others [2022] ZAKZDHC 51 the testator’s accountant

signed with him as witness, and he had one of his staff sign the

next day as second witness. In Raubenheimer the court condoned

the document as a valid will under section 2(3) of the Act, but in

Delport the court, inexplicably, held that it could not find that the

testator intended the document to be his last will and testament.

The important point from these examples is that you

may eventually be successful with a court application to

have a document tolerated as a valid will, but it is costly and

time-consuming.

Drafting a will should not be attempted before a thorough

Free advice is worth every

cent you pay for it.

process of analysing the testator’s financial assets and liabilities

as well as what he expects to receive or accumulate in the short

to medium term, how many of the assets are liquid assets, which

marital regime or relationship status is applicable, what the

family setup happens to be, and what the plans, dreams and

aspirations of the testator are. It also requires an understanding

of what assets the testator thinks are included in the estate, but

are not, for example, retirement fund benefits.

The final trap to be avoided by anyone who wants to make a

will is to resist the temptation to go for the free offer or the lowest

cost option as a final solution instead of an emergency interim

measure. In the financial planning practice I am involved in, we

have a saying, “Free advice is worth every cent you pay for it.”

Louis van Vuren, CFP®, FPSA®, TEP, outgoing CEO of the Fiduciary

Institute of Southern Africa (FISA®)


51

FINANCIAL PLANNING | Insurance

For the people

At a time when South Africans are facing uncertain economic pressures, it is important

for the insurance industry to shift what they provide and how they provide it.

Creativity and innovation are key. Blue Chip speaks to Brandon Garbutt, an insurance

entrepreneur, about securing the right cover for your unique lifestyle and risks.

Brandon, what are you up to?

I am passionate about expanding current financial

services and education, which is something close to

my heart. Creating solutions that benefit the diverse

population of South Africa is a driving factor for me

now and going forward. In my years of experience in

the insurance industry, we have become sensitive to

certain trends – specifically within the last few years.

We have noticed a move away from traditional insurance,

and what we have seen is that catering to the individual

within specific markets has become more prevalent, as

opposed to the general “one-size-fits-all” solutions of

the past.

In South Africa, the industry has typically created

solutions for three core markets based on affluence, despite

the fact that our country is far more complex.

It’s all about solving

problems for the people.

How close are we to getting to really catering to

people’s needs?

I think that we are getting closer and within my current

projects we are very cognisant of meeting these needs. The

projects which I have chosen to become involved in are

centred around this. The hope is that the industry moves

in this direction.


FINANCIAL PLANNING | Insurance

Can you tell us about your current projects?

The first one that I would really like to talk about is our

education platform called ImfundoHub. It was born out

of a passion to make learning truly accessible to all and is

led by Dr Vashna Jagarnath, an educator who has

worked across Africa to create transformative

learning initiatives. Education in South Africa has

faced challenges. This platform provides learning

material and support for all school-going children

focusing on the syllabuses aligned to the South African

CAPS curriculum. Beyond this, the platform also

provides tutoring via WhatsApp, free books, quizzes,

diagrams and an easy-to-use website. This platform also

allows for parents to track their child’s usage and progress,

making it an incredibly powerful tool for working parents.

A second project is around microlending, which is a

South African reality and in many cases a necessity. It

is also an aspect of financial services that is regularly

exploited at the expense of the customer. We are looking

at how to responsibly meet the needs of these customers.

We want to positively impact people’s lives by assisting

our customers to affordably meet their needs, build

assets, increase income and reduce their vulnerability

to economic stress. Taking this a step further, we have

looked at creating a very affordable, accessible insurance

product to protect the families of these customers in

the event of tragedy.

Lastly, we found certain challenges within the

investment sector around ongoing fees, which can

discourage individuals from investing. South Africa

struggles with a low savings rate, that results in many

issues, including an inability to retire comfortably. In

thinking how to address this, we developed a product

called King Alexander, that effectively refunds investors

the fees associated when investing should they not

meet a monthly benchmark. The product also incorporates

a guarantee that will protect your loved ones from market

downturns that result in investment loss in the event of

your death.

It is all about delivering practical, impactful solutions.

Do the right thing and

all will fall into place.

It was designed to be accessible with limited data

usage because we are cognisant of the reality that the

average South African faces. We have drilled down to

the CAPS curriculum on a weekly basis to ensure that

children have access to what they need when they

need it. We also send age-appropriate books weekly

via WhatsApp to encourage reading.

While I am involved in making ImfundoHub directly

available, I am also working in conjunction with

King Price Life to incorporate it into appropriate

products in a meaningful way, bringing insurance and

education together.

Brandon Garbutt, Insurance Executive


53


From wealth to wellbeing:

helping clients thrive,

not just survive

For decades, financial advice has been defined by numbers but

behavioural science has shown that our clients’ relationship with

money is more complex than just how much they have.

is deeply subjective, shaped by several

factors like personal values, mindset, money history

and culture to name a few. As a result, we often

“Enough”

find people with substantial income or wealth who

still feel anxious or dissatisfied with their financial lives, while

others with modest means live full and joyful lives.

This raises the question: what determines a client’s money

happiness and how can financial advice help clients not only

grow wealthier, but also feel more secure, fulfilled and content

with their financial lives?

Wellbeing: the most valued state

Before we can answer these questions, we need to understand

why wellbeing is one of the most valued and universally desired

states among humans. Research shows that people who

experience high levels of wellbeing are more resilient, more

creative and make better life decisions. They also tend to enjoy

better health, stronger relationships and higher productivity.

In many cases, they even earn more and build greater wealth

compared to those with lower levels of wellbeing.

So, what are the essential ingredients that help us as humans

experience wellbeing? Psychologists tell us that humans enjoy

wellbeing when they generally feel good about life, function

well and regularly experience positive emotions like hope,

contentment and love. It’s when their days are filled with

purpose, meaningful activities and a sense of personal growth.

It is important for us to feel a sense of autonomy and control

over our lives if we are to experience wellbeing.

Why is this relevant for advisors?

Our financial wellbeing has been identified as one of the most

important determinants of our overall wellbeing. So, when

our advice helps clients feel more in control, feel empowered

to make better decisions and fund meaningful goals and

experiences, we’re delivering value that goes far beyond what

investment returns or insurance policies can deliver. We’re

helping clients thrive – not just financially, but in life.

To expand the impact of financial advice from improving

financial health to enhancing overall wellbeing we need to

deepen our understanding of what financial wellbeing truly

means, how we measure it and, importantly, what drives it.

This understanding is key to designing financial planning

strategies and interventions that genuinely support and

promote financial wellbeing.

The changing meaning of money

A good starting point is to explore the role a client’s financial

health plays in their financial wellbeing as this has historically

been the primary focus of financial advice. This is especially

relevant as most advisors work primarily with affluent or highnet-worth

clients. While research consistently shows a strong

link between income or level of wealth, in other words a client’s

objective financial health and life satisfaction, it also reveals

that this relationship weakens as income increases beyond a

certain point. Once basic needs are met, the marginal benefit

of money diminishes and a client’s perception of their financial

circumstances takes centre stage.

For affluent and high-net-worth clients, wellbeing is shaped

less by “how much” they have and more by how they feel about

what they have, whether their wealth supports meaningful

experiences, provides peace of mind and provides them with

the freedom to enjoy life. Consequently, advisors need to shift

their focus from measuring success by wealth accumulation to

how they influence perceptions, behaviours and their client’s

financial confidence.

Defining financial wellbeing

Financial wellbeing is universally defined as the perception a

person has of being able to sustain their current standard of

living, while at the same time feeling that they are making

progress towards a desired future standard of living and

having the financial freedom to enjoy life along the way. It

consists of four key pillars: first, is the need to feel in control of

one’s current financial affairs. This relates to being able to pay



money attitude and beliefs. This allows the advisor to gain

an understanding of the client’s perception and whether

there are behavioural factors that need to be addressed in

the planning process. It also helps to ensure that financial

strategies recommended are not only suitable from an outcome

perspective but also from a behavioural perspective.

The future of

advice lies in

broadening our

value proposition.

the bills at the end of the month, not being overly indebted

and being organised. The second cornerstone is to have peace

of mind knowing that if life throws a curve ball at you, you

have access to financial resources to finance emergencies.

The third cornerstone is to be able to enjoy life – being able to

spend on some wants from time to time rather than only

having to pay for needs. Lastly, it is to have hope for the future,

working towards life goals and feeling secure about one’s

financial future.

It is also interesting to note that the meaning of financial

wellbeing changes over the course of life. Young adults see

financial wellbeing in terms of having freedom to finance life

experiences. For people in midlife, it is more about stability –

making ends meet and for older adults it is about independence

and being able to support loved ones financially.

Shaping financial perception to foster wellbeing

Perception is influenced by several factors, but financial

advisors can help clients experience financial wellbeing by

ensuring that their financial plan assesses where the client is

objectively and subjectively in each of the four cornerstones,

develop strategies to improve each of the four cornerstones

and regularly measure and give feedback on the progress

made in each of the cornerstones. This proves a more holistic

approach to financial planning and removes the focus from

investment performance and returns as the only measures of

financial success.

However, this requires that financial advisors enhance

their discovery process to gain a better understanding of the

client’s profile including their personality traits, values, goals,

Building financial capability for better wellbeing

Another key driver of a client’s financial wellbeing is whether

clients feel confident in their own ability to make sound

financial decisions. Financial capability directly influences an

individual’s money attitude and behaviour. By improving a

client’s financial capability, the risk that short-term impulses

or poor decisions derail their financial plan can be reduced.

Advisors should therefore place more focus on the financial

education of clients and should ensure that the financial

plan, feedback and other touchpoints continuously empower

the client with financial knowledge, understanding and skills

within the context of their personal financial journey.

This changes the focus of advice to empowerment which

strengthens trust, enhances client engagement and ultimately

leads to better financial wellbeing.

Advice that delivers transformative value

The future of advice lies in broadening our value proposition

to include the subjective dimensions of financial wellbeing.

Instead of measuring success only by returns, we can begin

to measure it by the confidence our advice gives clients, the

peace of mind they experience, the freedom they have to

enjoy life and the hope financial planning provides for their

desired future.

Advisors who embrace this shift will not only differentiate

themselves but will also deliver the kind of value clients

remember long after portfolio returns are forgotten. This is

advice that empowers capability, not dependency. Advice that

clients value not only for what it earns them, but for how it helps

them thrive.

Marius van der Merwe, CEO, Amity Investment Solutions


55

PRACTICE MANAGEMENT | M&A

Learnings from the field: IFA mergers

and acquisitions

In my role at Carmel Wealth, I work closely with top IFA practices, supporting them with succession and

growth. In doing so, I’ve noticed some interesting patterns in the IFA M&A space.

Minority shareholding is popular

In a market where many buyers follow a vertical integration

model and require control to drive it, transactions that support

a minority shareholding are rare. What we are seeing more

often is established firms looking for a minority capital partner.

Someone who can support their growth and succession

ambitions without seeking corporate control or rigid oversight

of the firm’s operations.

A minority stake also allows trust to build, giving both

parties the chance to prove themselves before considering a

larger shareholding. Founding shareholders often prefer this

path, knowing that their eventual retirement or succession plan

is backed by a partner with the balance sheet and support

infrastructure to deliver on it. For clients and staff, it is a positive

story too: the firm takes on a partner that supports its strategy

without changing its ethos, brand or client service.

Young successors seek equity

We are regularly asked to structure transactions so that younger,

next-generation leaders within the business can obtain

ownership. Having your future drivers invested alongside you

is a win-win. Their motivation is aligned with that of the founders

and key shareholders, thereby retaining top talent in future

leaders who carry forward the culture and ethos that made the

business successful in the first place.

Top advice practices can be very valuable, which makes it

difficult for younger team members to afford a buy-in. This is

why leaning on an external partner, such as a strategic


PRACTICE MANAGEMENT | M&A

shareholder to support and fund the buy-in, is becoming a

popular requirement.

Compliance support and technology enablement are urgent

From Carmel’s full suite of business support services, which

include compliance, technology enablement, human capital,

finance, payroll, company secretarial and more, the most

urgent support needs in top IFA practices are compliance

and technology.

Many firms outsource compliance, but principals often

complain that providers give them blank templates which they

still need to interpret and complete. For compliance services to

be effective and save business leaders time, the provider needs to

know the practice well enough to draft the policies, procedures

and implement them within the business. The principals should

be reviewing and approving, not doing the work from scratch or

driving compliance projects to completion.

On technology, leaders are often relatively comfortable with

their advice tools and CRM systems, but adequate cyber-security

infrastructure and data management remain common gaps.

Cyber-security weakness poses serious risk, for example if client

data is compromised. It is unrealistic to expect a practice leader

to be an expert CEO, wealth manager or business developer, and

at the same time cover cybertech and regulatory requirements at

a specialist level. Increasingly, we are seeing mid-sized practices

prioritising robust client reporting and data analytics by hiring

full-time data analysts as a back-office role, sometimes even

before appointing a practice manager or a full-time in-house

compliance manager.

more effectively, I expect practices looking to grow by acquisition

will increasingly do so with a strategic partner who has the

expertise and capacity to deliver.

Specialisation supports growth

Practices that specialise in a clear client profile or market

segment and adapt their service model, client engagement and

operations around that group tend to perform better. Whether

it is retirees in a certain wealth bracket, divorcees, high-networth

entrepreneurs or specific professions like doctors or

accountants, those who focus their offering deliver stronger

results. Knowing who you are for, and who you are not for,

usually makes a practice more profitable and sustainable than

those without a clear delivery strategy. This shows up clearly in

financial results and business valuations.

Final thought

In our work, we support leading firms with their succession and

growth while retaining structural independence. As the market

evolves, we have a front-row seat to emerging trends in the

M&A space. Rising costs of running advice practices and the age

profile of many principals will continue to drive consolidation.

However, even firms that are not actively considering M&A can

benefit from the lessons of others, and it is a real advantage

to partner with a specialist who brings both M&A expertise

and experience in scaling practices, along with insights from

multiple firms, rather than relying on the narrower perspective

of a single business.

Transactions that support a

minority shareholding are rare.

Buying an IFA business is complex

It is more the exception than the rule that small to mediumsized

practices can rely on M&A as their core growth strategy.

Sourcing acquisition opportunities, building trust, agreeing

terms, running due diligence, contracting and securing funding

can be a full-time job. It can take many months just to sign

the paperwork, and then the real work begins with effecting

the transition.

In many cases it is a better use of time and money to win

and retain clients organically. Just as many advisors outsourced

investment functions to DFMs over the past 15 years to scale

Kathryn van Dongen, Group COO, Carmel Wealth


57

PRACTICE MANAGEMENT | Succession planning

Practice durability pressures:

succession, consolidation and margins

Independent financial advice has never been more needed, and it’s never been under so much pressure.

Clients want trusted guidance. Yet many advice practices are wrestling with how to stay durable in a

changing environment.

Three issues come up repeatedly: succession, consolidation

and margins. Unless these are addressed deliberately,

they erode the value of a practice and threaten the

independence that advisors are proud of.

Succession

Without a clear succession plan, a practice can lose much of its

value overnight. Clients are left anxious; families face administrative

chaos and years of work may not translate into the retirement

capital an advisor imagined.

Succession is often treated as something to worry about “later”.

It takes years to get right. It requires grooming the next generation

of advisors, documenting processes and ensuring regular business

valuations are done and understood.

I saw this early in Commspace. A widow approached us after

her advisor husband passed away. His records were handwritten.

The successor became overwhelmed and withdrew. Clients drifted

and the family lost significant value. Eventually she joined a larger

Succession can’t be ignored.

IFA group, but the damage was done. It was a stark reminder that

“later” is too late.


PRACTICE MANAGEMENT | Succession planning

A different practice we worked with showed the opposite.

They built a rigorous, segmentation-driven approach to managing

their client base and eventually sold through Brokerspace. That

preparation secured a buyer aligned with their clients, gave them

flexibility in deal structuring and ensured a smooth transition –

ultimately unlocking maximum value.

Consolidation

Consolidation is reshaping the industry. Large financial planning

practices, consolidators and even insurers are actively buying

IFA practices. For some advisors, this is an appealing exit: a clean

buyout, operational support and less compliance pressure. For

others, it feels like losing their independence.

On the positive side, scale brings benefits. Bigger groups share

compliance resources, afford better technology and access stronger

research capabilities. They may even negotiate better deals with

product providers. But there are trade-offs. Some consolidators

impose restrictive revenue-sharing models or narrow product

shelves. Cultural clashes are common. Before signing anything,

advisors need to interrogate whether the partnership aligns with

their values and client promises.

Even those who don’t sell are affected. Larger competitors with

slick tech and big marketing budgets raise client expectations.

Smaller practices must double down on what makes them unique:

personal service, niche focus or community ties.

At Commspace, we see both sides. Some advisors leave large

networks to reclaim autonomy, wanting to build their own culture

and have control over product choice. Others are deeply satisfied

joining a bigger group, particularly in the run-up to retirement,

knowing their clients will be supported. Culture and ethos are not

“soft” issues; they are the difference between thriving in a merger

and regretting it.

Margins

Margins are under steady pressure. Compliance costs keep rising

under FSCA oversight and the upcoming COFI Bill. Firms need to

invest in tech for onboarding, secure communication and data

management. That combination means costs up, fees under

pressure and profitability squeezed. To survive, practices need to

rethink their operating model.

Some firms have introduced client segmentation models,

tailoring service levels to profitability. Others are using technology

– freeing up time for client engagement. Outsourcing non-core

functions such as compliance, para-planning or administration

keeps overheads flexible.

Another Commspace client provides a powerful example.

Over the last eight years, their firm has grown substantially, but

what really stands out is how rigorously they measure profitability.

They track time spent with each client, calculate revenue per client

and continually refine their segmentation model. Importantly,

they look beyond income, factoring in complexity, potential and

fit. That discipline has allowed them to grow while staying

profitable, proving that margin management is about aligning

effort with value.

A call to action

Succession can’t be ignored. Consolidation must be approached

with eyes open. Margin pressure needs proactive solutions. The

advisors who put in the hard work now will not only protect their

own legacy; they will ensure that independence remains a trusted

force for generations to come.

Commspace was born from the real

challenges independent financial advisors

face in managing revenue. Founded with

the goal of simplifying the complex

world of commission tracking and fee

management, Commspace has grown

into a trusted partner for advisors

across the country. The platform

not only automates revenue

allocation and reporting but

also provides powerful business

intelligence, giving advisors the

clarity and confidence to grow

their practices and understand

the true value of their books.

Martha Koekemoer, Managing Director, Commspace


59

Galileo Financial Planning

A Partnership for Financial Planners

Financial planners deserve the freedom to grow their own practice while knowing they

are backed by a trusted partner. Our vision is simple: to build a partnership of

financial planners that fosters entrepreneurship and ensures clients continue to

receive the highest standards of advice and service.

Why Join the Partnership?

As a Partner, you will be empowered to grow your practice or business under our

established brand. You retain majority ownership of your income stream, building an

asset of lasting value for yourself and your family.

We take care of the complexities that hold many advisers back: Compliance, systems,

marketing, HR, reporting, and finance. We can help you focus on what you love most,

giving great advice and building enduring relationships with clients.

Support Services that Elevate Your Practice or Business

Compliance: Training, reviews, risk management, and PI cover.

Technology: Leading CRM, risk profiling, financial planning, reporting and business intelligence

tools.

Finance: Fee reconciliation, payroll, and expense management.

Human Resources: Contracting, performance management, and leave administration.

Training & Development: Skills training, adviser development, and business coaching.

Value-Adding Growth Support

Marketing: A premium brand presence across media, advertising, and social platforms.

Practice Management: Consulting to streamline operations, unlock efficiencies and improve

profitability.

Succession Planning: Candidate identification, structured transitions, and future funding

solutions.

Let’s build your future together.

Joining the Partnership means building your business with

the support of a platform designed for growth. You gain

independence without isolation, entrepreneurship without

administrative burden, and a future-ready practice or

business that creates lasting value for your clients and

your family.

Building Practices.

Supporting Entrepreneurs.

Delivering Quality Advice.

Contact us today on ask@galileocapital.co.za to learn more about joining the Partnership.

Financial Planners

Become a Galileo Partner Today

Grow your own Galileo Practice

Leverage the Galileo brand to

accelerate your growth. Spend more

time with your clients and less time

on compliance, operations and

technology. Let us help you with

your succession plan.

Visit galileocapital.co.za or

email ask@galileocapital.co.za

for more information.

Galileo Financial Planning is an authorised financial services provider.

PRACTICE MANAGEMENT | Building sustainability

The 4 cornerstones of a sustainable

financial planning business

Running a financial planning business is more than serving clients well. True sustainability comes from working

on the business, not only in it.

Michael Gerber, author of the E-Myth, famously

observed that most entrepreneurs are

simply technicians who have experienced an

“entrepreneurial seizure”. Many businesses fail

because their owners spend too much time working in the

business rather than on it.

During my nearly 20 years at Allan Gray, I noticed a clear

pattern among financial planners who also owned their firms:

the most successful businesses were those that deliberately set

aside time to focus on strategy, systems and growth; working

on the business, not just in it.

Every owner should periodically reflect and assess whether

the building blocks of long-term success are firmly in place.

Four cornerstones define the foundation:

• Commercial strength

• Marketing focus

• People management

• Operational discipline

Each requires deliberate attention and regular refinement.

1. The commercial cornerstone

A financial planning business

is first a business. That means

having a clear vision, measurable

objectives and a strategy to

achieve them. A written business

plan is not a box-ticking exercise.

It is a living framework that must

be reviewed, updated and shared

with the entire team.

Business owners should ask:

• Do we know how profitable

each client segment really is?

• Do we measure performance monthly and act on the results?

• Can we accurately state the value of our business today?

These questions help turn assumptions into measurable facts.

Strategic decision-making also demands structure. A Board

of Advice or advisory forum can hold leadership accountable.

Without this, businesses risk drifting along, reacting to events

instead of steering towards a defined destination.

2. The marketing cornerstone

Some financial planners may rely

on referrals and word of mouth,

but a financial planning business

cannot grow sustainably without

a marketing strategy. A robust

marketing plan goes beyond

brochures and websites. It defines

your target clients, clarifies your

service offering and explains your pricing structure.

Marketing requires investment. Allocating at least 4% of revenue

is a rule of thumb, but effectiveness matters more than the spend.


• What activities are delivering new clients?

• How are we reinforcing our unique value proposition with both

clients and staff?

A financial planning business

cannot grow sustainably

without a marketing strategy.

Strategic alliances with accountants,

attorneys and other professionals

can expand reach if managed with

intent. Communication with clients

should be proactive, not reactive.

A financial planning business that

waits for clients to initiate contact

risks losing relevance. The goal is

to be top of mind and consistently

demonstrate value.


PRACTICE MANAGEMENT | Building sustainability

3. The people cornerstone

No business succeeds without the right people. Job descriptions,

performance reviews and employment policies may sound

administrative, but they form the backbone of a professional

environment. A strong people strategy also ties remuneration

to results and provides staff with opportunities for development.

The ability to keep top talent is the definitive benchmark of

a strong business. If a business struggles to hold onto talent, it

could signal deeper cultural issues.


• Are we cultivating a workplace where recognition, purpose

and clear communication drive motivation or are we relying

solely on compensation to keep people engaged?

• Is our team environment one where morale is high and

communication flows freely or are we seeing signs of

disengagement and disconnect?

Financial planning is a people business at its core. Clients

will always judge a firm by their experience with its people.

That makes investing in training, motivation and transparent

communication not optional but essential.

No business succeeds

without the right people.

4. The operations cornerstone

Operations is the heartbeat of your business. Even the best

plans and people will fail without systems that create

consistency. Documented policies, clear workflows and

accessible client data ensure the business runs smoothly

even when individuals are absent or replaced.

Workflow management tools allow owners to track tasks,

monitor turnaround times and confirm capacity. These insights

help avoid bottlenecks and ensure promises to clients are met.

Disaster recovery planning also deserves attention. Business

continuity is not only about regulatory compliance, but also

about protecting the trust your clients place in you. They

Communication with clients

should be proactive, not reactive.

need to know their financial future is secure, no matter what

happens behind the scenes.

Operations should be viewed not as an overhead but as the

infrastructure that allows scale. A business that relies on ad hoc

processes cannot grow without risking service quality.

Bringing it all together

Financial planning is demanding work. It is easy for owners

to spend every hour serving clients and none strengthening

the business. Yet businesses that thrive over decades are those

that deliberately build on these four cornerstones.

Business owners should use these pillars as a diagnostic tool

to answer the following:

• Which areas are solid, and which need development?

• Is marketing underfunded?

• Are people policies outdated?

• Are operational systems too dependent on individuals rather

than processes?

A business that actively strengthens its commercial, marketing,

people and operational foundations is not just surviving year by

year. It is building resilience, profitability and long-term value.

Kevin Feather, Head, Galileo Financial Planning

FPI UPDATES | Regulatory updates

Accountability: taking ownership

of outcomes

Accountability has recently been added as the ninth ethical principle of the FPI Code of Ethics.

The following narrative is grounded in true events. Picture the

consulting rooms of a medical practitioner.

“The test indicates diabetes,” says the clinician, the tone

sympathetic. “I have often recommended changing your

lifestyle, and now it is too late for preventative interventions.”

The patient retorts, “But why was diabetes never tested for during

any of our prior consultations? For the past seven years, you have

prescribed medication for three other lifestyle-related illnesses, and

we have conducted health reviews every six months.”

The clinician replies, “You should have requested a diabetes test.

It is your responsibility to inform me about possible symptoms that

would indicate the need for testing. I cannot assume you are in a

condition warranting a glucose test.” [End of scene]

Evaluation

What emerges from this scenario is the undeniable importance of

preventative care and early intervention. Retrospectively, we often

see that better outcomes are possible if action is taken sooner.

However, life does not permit us to rely on hindsight or to conduct

ourselves based on a series of “you should haves”. The real challenge,

therefore, lies in establishing mechanisms of accountability before

outcomes are known and before the need for intervention becomes

urgent.

Further, what could reasonably be expected from a seven-year

doctor-patient relationship? Should the standard be determined by

the competence, training and practical experience of the healthcare

professional? Is it instead shaped by the clearly expressed needs and

self-advocacy of the adult patient? Or is there a third party to consider

– the medical aid scheme – an external actor whose influence ensures

that the healthcare professional does not oversell services or perform

unnecessary procedures?

Each of these perspectives reveals different facets of accountability.

The healthcare professional, by virtue of their training and ethical

obligations, is expected to act in the patient’s best interests,

anticipating potential conditions based on observed risk factors. The

patient, meanwhile, is expected to take an active role in their own

wellbeing by communicating openly about symptoms, concerns

and lifestyle habits. The medical aid scheme, for its part, introduces

a regulatory element, potentially designed to prevent over-servicing

but often limiting the scope of care and the autonomy of both patient

and practitioner.

What results is a complex interplay of responsibilities and

expectations, all of which influence the ultimate outcome. This

scenario prompts a vital question: in cases such as these, who is

responsible for ensuring the best possible outcome for the patient

or client? Too often, the enquiry focuses on identifying culpability

for unfavourable results. Paradoxically, our usual approach is to

regard accountability as the state of being answerable specifically for

adverse impacts, rather than for the creation of positive outcomes.

Defining accountability

Accountability, however, should be understood more broadly. It is

the explicit acknowledgement of responsibility for actions, decisions,

services rendered and products delivered.

Responsibility in the professional context can be legal or moral

(ethical) in nature. For accountability to be meaningful, there must

be a clear and mutual understanding of the underlying relationships

and expectations. It cannot exist in a vacuum, for in the absence of

defined boundaries and roles, responsibility becomes limitless and,

ultimately, unmanageable.

Therefore, context is paramount. The dynamics of accountability

are shaped by the specific circumstances surrounding the interaction

– be it in healthcare or any other professional setting. Each actor must

understand both their own obligations and those of the other parties

involved. Accountability becomes an active process, anchored in

communication, clarity of expectations and a shared commitment to

achieving the best possible outcomes.

In conclusion, this case study illustrates that accountability is not

about retrospective blame, but rather about proactive ownership

of outcomes. It demands explicit dialogue, clear role definition

and an appreciation of the broader context in which professional

relationships operate. Only then can individuals and institutions

create environments where accountability leads not just to avoidance

of negative consequences, but to the realisation of positive, tangible

benefits for all involved.

Accountability

should be

understood

more broadly.

Kobus Oosthuizen, CFP®, Manager: Legal & GRC, FPI


The Consumer Price Index (CPI) is our official rate of

inflation. It’s based on the change in price of a broad

basket of goods and services that the average South

African consumes. If your basket of goods and services

is different to that used to calculate CPI, you will have your own

personal inflation rate that could be different to CPI.

Johann Biermann, CFP®, has created the “Braaibroodjie

Index”, which he has shared in LinkedIn recently. This is an

inflation index made up of a basket of goods used to make a

braaibroodjie (sandwich toasted on the braai) – specifically white

bread, cheese, tomato, onion, butter, salt and chutney. What

the Braaibroodjie Index shows is that inflation is roughly

double CPI, which feels intuitively more like the inflation that

I experience.

I expect that sentiment would be true for many people

who intend to self-fund their retirement. People like you and

many of your clients. I’m not saying that everyone should

use the Braaiboodjie Index as their inflation number, but

rather that you need to consider the impact if your clients’

personal inflation is higher than CPI. This is especially true

for older clients where medical expenses make up a growing

proportion of their monthly spend because this is governed

by “medical inflation”.

Let’s look at an example where I assume that CPI is 3% and

that your client’s personal inflation is 6%. The first impact of

personal inflation is in the accumulation phase, when you do

the retirement calculations and need to assume an inflation

rate. In most cases, people use CPI because it is the official rate.

The problem is that if you use a rate that is too low, you will

end up calculating a lump sum that will not give your client

sufficient retirement capital to generate their desired retirement

income. In this case you’ve used 3%, whereas you should have

used 6% to determine the retirement capital that that specific

client will need to generate their desired retirement income.

Assuming that the client is either fully or partly investing

into a living annuity, the second impact is in the decumulation

phase when you select an investment portfolio. In the living

annuity, you need to select a portfolio that will give your

client the best chance of receiving the desired income. You

FINANCIAL PLANNING | Inflation

Braaibroodjies are more

important than you ever imagined

Hopefully the title got your attention, so here goes.

Start by having a discussion

with your client about their

experience of inflation.

will do this by selecting a portfolio that targets an inflation

plus x% return. The problem is that most portfolios

have a targeted return of CPI plus x%. If you need a return of

4% more than inflation, you will select a portfolio targeting

CPI + 4% = 7%. Whereas they should have gone into a portfolio

targeting 6% + 4% = 10%. The effect of going into the CPI + 4%

portfolio is that your client will end up with an even smaller

income or, worse, they will run out of money if they draw down

at a higher rate to maintain their income.

There are a few ways that you can manage this, but here’s

one strategy Lizl Budhram, CFP®, suggested to me. Start by

having a discussion with your client about their experience

of inflation. Include this, and their decision about whether to

increase the inflation in the calculations and targeted returns,

when completing the risk/return strategy decision.

That way the rationale can be used in your calculation and

captured as part of the investment strategy, which will ensure

that the selected portfolio is aligned. This will make the advice

record clean and based on a detailed

advice conversation.

You need to consider whether you

may be using the wrong inflation

number before and after retirement,

ie is your calculation of the retirement

capital producing an amount that is

too small, and whether the portfolio

that you select is generating a return

that is too low. The net effect is that

your client will get a lower than desired

retirement income and/or they will run

out of money if their personal inflation

is higher than CPI.

Guy Holwill,

Chief Executive

and Founder of

Fairbairn Consult.

PHOTO: boyeatsworld.com.au


65

FINANCIAL PLANNING | Fraud

Protect yourself from financial fraud

Scams are becoming more frequent and increasingly sophisticated, with financial losses on the rise.

A

recent TransUnion survey revealed that 33% of South

Africans surveyed had lost money to fraud via email,

phone or text in the past year. Common scams include:

Phishing (33%). Fake emails, websites or QR codes

designed to steal personal data.

Smishing (31%). Fraudulent text messages tricking users into

sharing information.

Third-party scams (28%). Fraud on online retail platforms.

The consequences can be devastating. A client tragically passed

away after scammers drained his account, leading to a fatal heart

attack. In another case, a victim paid R1-million via EFT after

receiving a fake invoice with altered banking details.

“It’s highly likely you know someone who’s been scammed,”

says Bryan Leach, a wealth manager at Private Client Holdings.

“Your best defence is awareness. Understanding how fraudsters

operate is key to protecting your money and peace of mind.”

Most scams begin with phishing, ie fraudulent emails, texts or

calls that appear legitimate and prompt you to share personal or

banking details. These often link to fake websites that mimic real

ones, tricking victims into handing over sensitive information.

How to protect yourself

Be sceptical of unsolicited calls. If someone calls claiming to

be from your bank, hang up and call the bank directly.

Watch for urgency tactics. Scammers often pressure you to act

immediately, this is a red flag.

Trust your instincts. If you feel fearful, confused or pressured,

end the interaction.

Verify directly. Always confirm suspicious emails or calls with

your bank or the company involved.

Examine emails carefully. Hover over the sender’s name to

check the actual address. Be wary of free domains like Gmail.

Avoid clicking suspicious links. Do not open attachments or

links unless you are certain that they are safe.

Be cautious of “too good to be true” offers. Free money,

massive discounts or high returns with little effort are almost

always scams.

Protect your data and PIN or passwords. Your bank will never

request sensitive information via phone, SMS or email.

Strengthen your defences

Leach advises clients to strengthen their defences to prevent

financial fraud. “An Investec Corporate Cash Management (CCM)

account is not only a flexible option for our clients’ regular and

ad hoc payments, but the Private Client Holdings CCM team will

independently verify a client’s bank details for larger transactions,

providing an additional safeguard when moving funds between

institutions or internationally,” says Leach.

Your best defence is awareness.

Protect elderly family members

Older adults are often targeted due to isolation, cognitive

decline or loneliness. Once scammed, they may be targeted

again. “Someone who has been successfully scammed is often

targeted repeatedly making it important to protect elderly family

members as much as possible,” says Leach.

Tips to help protect them:

Have open conversations. Talk regularly about scams and

share examples so older loved ones know what to look out for.

Normalising these discussions makes it easier for them to ask for

help if they feel uncertain.

Set up protective banking measures. Work with your family

member’s bank to enable extra safeguards such as:

• Transaction limits.

• SMS/email alerts for transfers or withdrawals.

• Dual authorisation for large payments.

• Install digital safety tools.

• Set up antivirus and anti-phishing software.

• Spam filters and number blockers.

• Teach them how to verify links and senders.

Create a “pause and verify” routine. Encourage a simple rule:

don’t act immediately on any request for money, personal details

or PIN codes. Instead, pause, call a trusted family member or

contact the bank directly.

Stay involved and connected. Isolation makes older people

more vulnerable. Frequent check-ins offer a safe space to share

suspicious messages. Scammers lose their power when older

family members feel less pressured to act alone.

Bryan Leach,

CFP®, Wealth

Manager, Private

Client Holdings


PRIVATE CLIENT HOLDINGS WEALTH MANAGERS

FEATURE IN CITYWIRE TOP 50 IFA LIST

MARK

MACSYMON CFP®

GARETH

LANGE

TYRONE

COETZEE CFP®

NICOLA

LANGRIDGE CFP®

LUKE

HIRST CFP®

WARREN BUYS

CFP®, CFA®

Ruan Jooste, the editor of Citywire South Africa, noted, “What stood out most this year

was not simply the quality of individual submissions, but the collective story they tell: of

an advice profession that is maturing, broadening and raising its own standards. That is

something worth celebrating – and a powerful signal of where the industry is heading.”

FINANCIAL PLANNING | Healthcare

From wellness

to strategy

How WWASA and employee assistance providers are

redefining human capital and healthcare leadership.

Healthcare costs in South Africa continue to rise, inequalities

persist and productivity remains under pressure. Leaders

in health policy, finance and workplace design must adapt.

This article positions preventative care not just as a clinical

necessity, but as a strategic asset for financial planners, trustees,

employers and policymakers. By showcasing the role of Workplace

Wellness Association of Southern Africa (WWASA), it highlights how

workplace wellness can transform liabilities into levers for growth.

From cost centre to competitive edge

South Africa’s dual healthcare system is under immense strain:

• Private cover remains unaffordable for most.

• The public sector is fragile and stretched.

• Over 16-million working-age adults live in food poverty (Daily Maverick,

June 2025).

For financial planners, these dynamics translate into unsustainable

claims costs, higher client risks and pressure on retirement outcomes.

Yet within this challenge lies a solution: prevention, delivered

through the workplace, guided by evidence and aligned to national

health priorities.

Data, diagnostics, and leadership

Nevania Naidoo, chair of EAPA-SA’s research and education portfolio,

reframed wellness at WWASA’s 2025 service provider webinar, “Service

providers are no longer just vendors – they are catalysts in creating

wellness cultures that boost productivity and retention. That means

data, diagnostics and a new language of impact.”

Central to this is the Workplace Wellness Climate Tool, a national

benchmarking model that enables organisations to:

• Assess maturity against the Wellness Wheel.

• Identify strategic gaps.

• Guide investment in evidence-based programmes.

For financial planners, this tool is a gateway to quantifiable wellness

metrics, making it easier to link preventative initiatives to financial and

fiduciary outcomes.

Wellness as an economic lever

According to WWASA CEO Chris Luyt, the transition is not optional,

it’s inevitable, “Health plans built purely around curative treatment

won’t reach the mass market any more. Prevention makes coverage

cheaper and more inclusive. It’s not only a clinical imperative, it’s

an economic one.”

This framing speaks directly to fiduciary duty. Trustees and

intermediaries cannot ignore a cost driver that directly impacts longterm

liabilities, retirement fund stability and employer solvency. When

prevention lowers chronic claims and improves productivity, the value

multiplies across portfolios: lower exposure, stronger member wellbeing

and improved ROI.

The expanding role of intermediaries

The wellness model has started producing results. Organisations adopting

WWASA’s framework report fewer chronic claims, higher employee

engagement and productivity gains through reduced absenteeism.

For financial planners and benefit consultants, the role is expanding

from broker to strategic advisor. The new toolkit includes:

• Wellness climate audits

• Integrated benefit design

• Performance-linked prevention programmes

• Research-informed outcomes

Executives can integrate wellness into corporate strategy to

boost profitability. Policymakers can leverage workplace platforms to

expand public-private access and corporate social investment. Fund

managers and trustees can reduce risk exposure by redesigning benefit

structures. Financial planners can elevate their advisory role through

measurable, ROI-driven wellness strategies. Ultimately, wellness is not

an HR add-on. It is a core leadership responsibility with measurable

financial outcomes.

For FPI members

Integrate wellness metrics. Incorporate workplace wellness audits into

client financial planning and fiduciary assessments.

Position preventative care as an investment. Reframe wellness-spend

as a long-term cost-saving strategy, with a proven ROI of R3 to R6 for

every R1 spent.

Advise on holistic benefit structures. Guide employers in blending

preventative healthcare with retirement, risk and employee benefits.

Leverage national tools. Use WWASA’s climate tool to differentiate

advisory services and add measurable value.

Champion policy alignment. Align workplace strategies with the

National Health Insurance (NHI) framework, positioning clients at the

forefront of systemic change.

Closing thought

In today’s economy, leadership is measured not only by compliance

but by vision. Wellness offers one of the most underutilised levers

of strategic value. By embedding preventative care into financial

and business models, South Africa’s financial planners, trustees and

employers can reshape healthcare – and strengthen economic resilience.

As Luyt concludes, “Intermediaries and executives who embrace this

shift won’t just stay relevant; they’ll shape the future of healthcare in

South Africa.”

FINANCIAL PLANNING | Healthcare

From intermediary to

strategic advisor

The WWASA Ambassador webinar underscored one key message: the intermediary role is shifting.

Financial planners and benefit consultants can no longer rely

only on transactional product advice. Instead, they must

evolve into strategic wellness advisors, using prevention and

workplace wellness as profit-driving solutions. Dr Themba

Hadebe, chief medical officer at Bonitas, highlighted the rising

prevalence of stress-related and preventable conditions as the

fastest-growing drivers of healthcare costs. Hospital expenses are

escalating beyond sustainability. An astonishing 15.8% of South

African adults experience anxiety disorders and 16.5% live with

mental illness (National Planning Commission).

Dr Hadebe’s message was clear: “Prevention of disease is in

your hands – wellness interventions must start upstream.”

For financial planners, this data is not abstract, it translates

into escalating claims, reduced affordability and client vulnerability.

Integrating preventative wellness into advice and plan design has

become a fiduciary necessity.

Pain points and opportunities

Andre Jacobs, WWASA director, painted a candid picture of

today’s intermediary market, saying that opportunities to add value

and revenue are being missed, that advisors lack differentiated

solutions and transactional year-end revisions dominate. Jacobs

suggests that intermediaries should use WWASA toolkits as this

would enable them to position themselves as strategic advisors,

package services and build tiered pricing models. A Wellness

Advisor Value Ladder can also be created from the free premium

solution tools. He introduced a four-week roadmap for immediate

implementation:

1. Define a niche.

2. Use the toolkit to approach five leads.

3. Build visibility and present proposals.

4. Onboard the first employer group.

WWASA’s value proposition for intermediaries

WWASA CEO, Chris Luyt, outlined the organisation’s mission and

value offering, explaining that it is a workplace framework that

covers the eight dimensions of the Wellness Wheel (stress

management, financial literacy, leadership coaching and safe

workplace, etc). Luyt used Woolworths as real-world proof saying

that 24 000 Woolworths frontline employees now have access to

private day-to-day medical care – a global first in retail. There are

exclusive benefits for ambassadors such as the knowledge vault,

climate studies, monthly webinars, weekly podcasts as well as

dedicated support.

For financial planners, this represents new revenue streams

and a way to future-proof advisory practices. Luyt’s message

reframed the year-end advisory cycle. “Year-end reviews must shift

from transactional option changes to transformational, ROI-driven

wellness advisory,” he concluded.

ROI and practical benefits

The session demonstrated that wellness is not just good

practice, it delivers measurable returns as employers save on

absenteeism and gain access to affordable preventative care.

Advisors can increase revenue by up to 30% through early adoption

of WWASA’s framework. For FPI members, this underscores that

workplace wellness is a financial strategy, not an HR add-on. It

mitigates claims risks, boosts engagement and enhances the longterm

sustainability of benefit funds.

Takeaways for participants

Trends. Emerging health and cost risks facing employers and funds.

Tools. Practical processes for building a profitable, wellness-driven

advisory practice.

Proof. Case studies of ROI for both employers and employees.

This blueprint moves intermediaries from product brokers to

strategic advisors who align wellness with financial performance.

Intermediaries and FPI members are advised to start integrating

wellness metrics into client advisory models immediately and

should explore resources and toolkits at www.wwasa.org.za.

Action points for FPI members

Elevate advisory role. Reframe from transactional broking to strategic

wellness advice.

Adopt the toolkit. Use WWASA’s climate studies, audits and

frameworks to differentiate service offerings.

Leverage ROI data. Use evidence of cost savings to strengthen

fiduciary recommendations.

Support employer groups. Position workplace wellness as a

retention and productivity solution.

Align with national goals. Integrate prevention into benefit

structures, supporting both government and privatesector

sustainability.

Leadership through prevention

The Ambassador webinar reinforced a truth that resonates

across finance and healthcare: wellness is leadership. Financial

planners and trustees who integrate preventative care into

advice not only improve client outcomes, but they also ensure

the long-term sustainability of the system. For FPI members, the

opportunity is clear: lead the shift from curative to prevention

and shape the future of healthcare advisory in South Africa.

PRACTICE MANAGEMENT | Client relationship management

Courage, compassion and

consistency: a journey from zero

to 1 300 clients

Building a sustainable advisory practice demands consistency, resilience and genuine care

for people.

Some people chase success. Others build it slowly, guided

by purpose, family and a deep desire to help. For Martin

Loots, becoming a successful medical aid advisor wasn’t

just a career move. It was a leap of faith built on courage,

compassion and consistency. When Loots joined Medihelp’s

advisor network in 2014, he had no clients, guarantees or roadmap.

What he had was a strong work ethic, a heart for service and

people who believed in him. Today, 11 years later, Loots manages

a thriving book of over 1 300 medical aid members, many of who

feel more like family than clients.

A fresh start, supported from day one

Loots’s journey into medical aid wasn’t linear. The former

paratrooper had tried life insurance, spent two years on a working

holiday in Europe and even joined his brother in a business

venture in the US. Following his father’s footsteps into insurance

felt natural, but finding his true calling took time.

Everything changed when he discovered his passion for

medical aid and partnered with actor Ryno Hattingh, who some

of you might know from Konings and Getroud met Rugby. “I had

nothing, and I needed speed,” says Loots. “Ryno helped me get

into the business. My parents and parents-in-law also saw the

potential and helped us tremendously in those first two years.”

But even with that support, starting from zero in the medical

aid industry seemed impossible. Then came the professional

breakthrough. Loots was introduced to Alda Meiring, who heads

Medihelp’s upsell programme. “They provided me with office

space in their Arcadia building for two to three days a week. Leads

started coming in, and within a year, I had over 300 members. By

the second year, I’d doubled that.”

The combination of family belief and professional partnership

created the perfect foundation. “You can’t build a business from

zero without help from people who believe in you,” Loots reflects.

“Medihelp gave me the springboard, but my family gave me the

courage to jump.”

Turning clients into community

Loots’s success is grounded in real human relationships. “Our

clients become friends. We check in before surgeries. We’re there

Martin Loots, Medical Aid Advisor, Medihelp

during emergencies. One client called me at 22:00 on a Saturday

while her husband experienced a medical emergency. That’s how

personal it gets.”

This emotional connection underpins everything Loots does,

and it’s part of what makes his service feel so different. He’s not

just selling medical cover, he’s showing up for people in real

moments of need.

Making digital personal

Long before remote work became mainstream, Loots pioneered

digital-first client service. “Medihelp taught me that medical aid

can be sold online effectively. Since then, we’ve worked from


PRACTICE MANAGEMENT | Client relationship management

anywhere. Even after moving from Gauteng to the

Cape, there was no business disruption.”

He praises Medihelp’s digital infrastructure.

“The Advisor Zone and website are among

the best in the industry.” But technology never

replaces the human touch. “We train clients to use

the Medihelp app and submit queries digitally. But

we’re still here every day when they need us most.”

Wisdom for the next generation

Loots’s advice to young advisors is rooted in

experience and humility:

Start small but start now. “Rome wasn’t built

in a day. Young people expect overnight success,

but this business rewards those who show up daily

and build relationships one client at a time.”

Accept help but own your journey. “You

can’t do it alone – I certainly couldn’t. Ask for

support and learn from mentors, but don’t expect

shortcuts. No one can build your career for you.”

Train and educate your clients. “Train your

clients to go digital. It’s more efficient than sorting

out queries over the phone. Also, make sure

you know the rules of the products you sell, and

explain them clearly to help educate your clients.”

Be honest and transparent. “There are a lot of

technicalities in medical aid: claims that won’t be

paid, exclusions and co-payments. Give good advice, even when

it’s difficult. It’s hard to tell a client a claim won’t be paid, but I’d

rather be direct and transparent. That’s what builds trust.”

Care about your clients and show it. What sets Loots apart is

his compassion. Clients remember the service, not the sale. “Let

your clients know you’re here for them. Check in with them. Say

good luck before a surgery. Follow up. Those small touches make

the biggest difference.”

More than a job – it’s a calling

Loots doesn’t romanticise the work. Building a sustainable

advisory practice demands consistency, resilience and genuine

care for people facing health uncertainties. But he’s also clear.

“This is a good career. If you’re honest, consistent and put in the

work, you can live a fulfilling life and really make a difference.”

Give good advice, even

when it’s difficult.

His success, 1 300 clients who trust him with their most

important healthcare decisions, proves that values-driven service

isn’t just good ethics. It’s good business. “If you do the job right,”

Loots says, “it’s a career that gives back. You support your family.

You help people. And you live with purpose.”

Ready to build a fulfilling career helping people navigate their

healthcare needs? Discover how you can partner with Medihelp

and make a meaningful difference in people’s lives.

www.medihelp.co.za


71

FINANCIAL PLANNING | Diversity

Guarding against the impact of the

3Ps in the current global system

Both business and industry have a role to ensure guardrails are in place to protect investors from the

psychological phenomenon of “groupthink”.

Anecdotally, the subjects of patriarchy, populism and

politics seem to be making a comeback globally –

potentially impacting the world of investing and

introducing dynamics that can harm the integrity of

the industry.

Understanding the impact of groupthink

Groupthink is a mode of thinking in which individual members of

small cohesive groups tend to accept a viewpoint or conclusion

that represents a perceived group consensus, whether the group

members believe it to be valid, correct or optimal. (Source:

Encyclopedia Brittanica.) Groupthink reduces the efficiency

of collective problem-solving within such groups. The Oxford

Dictionary, in turn, classifies groupthink as the practice of

thinking or making decisions as a group, resulting typically in

unchallenged, poor-quality decision-making.

Research indicates that gender and other diversity in investment

teams is especially helpful to overcome cognitive biases such as

the “overconfidence bias”, to counter the risk of groupthink, and to

improve overall investment decision-making and performance.

We interviewed a panel of top female investment experts at

Ashburton Investments on this phenomenon.

“I think this is the reality we are living in, but it doesn’t mean

we have to conform to it. The investment industry already struggles

with representation, with only 11% of senior roles being held by

women as per McKinsey’s and the Lean in Foundation’s seminal

2020 Women in the Workplace report and other subsequent

reports with similar statistics,” says Uma Vijayan, a portfolio manager

in the Ashburton Fixed Income team.

Cautionary tales of biases causing harm

“Over the past three decades, I’ve witnessed several cognitive

biases come up in the investment industry repeatedly, perhaps

most notably overconfidence bias and confirmation bias,” says

Vicki Tagg, head of indexation at Ashburton Investments.

“Early in my career, I worked largely in homogenous teams,

from similar educational and cultural backgrounds. These teams

were certainly sharp and capable, but there was a tendency to

reinforce each other’s views continuously, to hire people of similar

backgrounds and to work with clients and investment partners

that were also similar. It created an environment where decisions

were made with a lot of certainty, but not enough challenge or

reflection. The views, in my opinion, were not necessarily matched

by objectivity or simplicity,” says Tagg.

Not having diversity is like

living in an echo chamber.

Setting up guardrails

“If we want to protect the integrity of the industry and build a

forward-thinking investment management ecosystem, guardrails

need to be put in place to ensure we stay grounded in principles

that always mattered: independent thinking, strong institutions

and diverse teams,” says Vijayan.

“This also means safeguarding the independence of regulatory

bodies, strengthening internal governance structures and continuing

to support diversity – not as a buzzword or a checklist item but as

a driver for long-term sustainable outcomes. Also, when building

organisations that affect others, the foundation should be clientfocused,

with an openness to multiple perspectives and a willingness

to engage with complexity instead of oversimplification. Not having

diversity is like living in an echo chamber. It feels comfortable, but

it limits insight, weakens decision-making and increases risk.”

Kathy Davey, global equity portfolio manager at Ashburton

Investments, believes a room in which everyone thinks the same

can lead to poor investment decisions – but being aware of this

risk and countering it can have an opposite, positive effect. She

explains, “Diversity brings different perspectives and experiences,

creating a robust investment decision-making process where

different ideas and opinions can be appreciated and flourish. I

believe this only seeks to enhance the investment decision-making

process which has certainly been my experience.”

Asking better questions

Looking back on her investment career, Tagg believes it is

also beneficial to consider the diversity of an asset manager’s

clients. “Considering the diverse nature of South Africa, I do think

as an industry we should keep improving at explaining things in

a way that is more accessible to a broader range of investors. If

we get this right, we can build more accessible, sustainable

investment businesses.”


FINANCIAL PLANNING | Retirement

South Africa’s retirement

industry is proving its resilience

Henré Prinsloo, head of employee benefits and actuarial consulting at Momentum Corporate, discusses the

major trends impacting the local retirement fund industry and how recent regulatory changes have tested

its resilience.

While the two-pot retirement system remains a

dominant topic currently shaping South Africa’s

retirement industry, the sector is also focusing on

broader reforms, innovative investment strategies

and the integration of technology to better serve members.

The implementation of the two-pot retirement system has been

a major test of the retirement industry’s resilience. While some may

feel “two-potted out”, the system is proving its value in encouraging

long-term savings. Surprisingly, early data indicates that only

around 40% of members chose to make a withdrawal, meaning the

majority (60%) did not. This suggests a growing inclination toward

preservation of funds.

Even for those who have made withdrawals, the system continues

to offer a better long-term outcome than the previous model where

people cashed out their entire retirement savings when changing

jobs. The two-pot system is essentially forcing a level of preservation

while still providing some much-needed liquidity. This new-found

stability is creating a larger pool of preserved assets, opening the

door for new investment opportunities.

Impact investing and infrastructure

Infrastructure development and impact investing are playing

increasingly larger roles in the retirement fund industry, moving

beyond theoretical concepts, with many examples of projects that

successfully balance social impact with generating solid returns

for members. These long-term, high-return assets are a natural fit

for the retirement industry, especially with the increased stability

brought about by the two-pot system. As the retirement fund

industry grows in scale, it gains the ability to invest in large-scale,

long-term infrastructure projects, which benefit both members and

the country’s development.

The two-pot system is essentially

forcing a level of preservation.

Global and local retirement reform

South Africa’s retirement fund industry is often seen as a global

leader in many aspects. However, although it is ahead of many

international counterparts in its maturity and sophistication, there

remains work to be done. A collective effort from government,

regulators, employers and service providers is essential to refine

existing policies and introduce new reforms. The success of the

two-pot system serves as a great example of what can be achieved

when all stakeholders work together to find common ground.

The role of technology and AI

While advanced AI tools like generative AI hold great promise,

the real-world impact of simpler technologies like WhatsApp has

been significant. As an example, the sheer volume of member

engagement through basic digital channels such as WhatsApp

during the two-pot implementation was unprecedented. This

shows that people of all ages and demographics are comfortable

with digital communication, not just younger generations.

This digital comfort presents a huge opportunity to streamline

processes. Submitting a claim via WhatsApp, for example, is far more

efficient than traditional manual forms. Technology is also being

used to improve internal processes, with AI assisting in tasks like

generating meeting minutes and summarising complex documents

for trustees and advisory bodies.

However, the industry acknowledges that AI will not replace the

human element. While technology can provide access to information

and simplify transactions, human oversight and empathy remain

crucial. The human touch is especially important when dealing

with the significant life events tied to retirement, a time of potential

vulnerability and anxiety. The goal is to use technology to create a

smoother, more comfortable experience for members, ensuring

that the human element remains focused on providing support

and guidance when it matters most.

Looking ahead

South Africa’s retirement industry, including the regulations

governing it, are in a state of continuous evolution. Changes being

made today will not fully impact member outcomes for decades.

The two-pot system, while still in its early stages, is already setting

a new precedent for member engagement. For the first time, a

large portion of the population is actively interacting with their

retirement savings, even if it’s to access a portion of their funds.

This increased awareness is a massive win for financial literacy and

will likely lead to better long-term decisions.

An encouraging take-out from the recent Institute of Retirement

Funds Africa (IRFA) Conference is that the industry is united in

its commitment to continue building a robust, resilient system

that combines strategic policy, innovative investment and smart

technology to provide a secure future for all South Africans.


Because real results come

from discipline, not distraction.

Successful investing isn’t about reacting to short-term market swings. It’s

about having the discipline to stay the course – remaining focused on

your goals while others are distracted by the noise.

At Independent Investment Solutions, our philosophy is built around

discipline, consistency and independent thinking. We believe that

lasting success comes from time in the market – guided by experience,

research and a steady hand.

www.i2solutions.co.za

Independent Investment Solutions – stay the course. Build with confidence.

Independent Investment Solutions (Pty) Ltd is an authorised financial services provider, FSP 48201.

PRACTICE MANAGEMENT | Technology

It’s always been good practice, but

now it’s a legal requirement…

On 26 March 2025, the FSCA published a conduct standard on financial education initiatives. The conduct

standard sets out various requirements with which financial institutions must comply from 25 March 2026.

Here’s a summary of what will need to happen.

A

financial institution must have appropriate governance

arrangements in place to oversee the design and

implementation of financial education initiatives.

All retirement funds and financial institution boards

should include this as a standing agenda item at each of their

quarterly meetings.

Financial education initiatives provided by a financial institution

should aim to enable members to make more informed financial

decisions.

Retirement funds must adopt an approach that is easy to understand

and that ensures a transfer of knowledge. Creating communication

in other languages will go a long way to simplify difficult concepts

for different target audiences.

A financial institution providing virtual financial education initiatives

must ensure that the virtual platform is appropriate for this purpose

to ensure that the financial education initiative is effective.

All members must be reachable on the chosen medium. In today’s

world, your members expect instant answers. If they can’t find clear,

simple information about their retirement benefits and options,

they’ll be left feeling uncertain, and ultimately, disconnected. An

open website that is not behind a login is a possible option. You

can use WhatsApp, SMS, email or even publish posters with links

to the relevant educational materials and videos on your website.

The outcomes of financial education initiatives must be measurable

in order to demonstrate effectiveness and measure impact.

Retirement funds will need to run surveys to measure these aspects

and to identify where there is room for improvement. You can do

this telephonically, via WhatsApp, USSD or a competition, using

flyers or on your website.

Using small incentives such as complimentary vouchers for

those who watch and complete the survey online has proven

very effective.

Tracking website visits with tools like Google Analytics to

monitor members’ geographical areas, devices and browsers

is tremendously useful when creating campaigns. The

electronic link to the online survey can be supplemented

with a hard-copy option available at HR, workshops or

distributed during member sessions or annual general

meetings, if needed.

A financial institution must report information relating to the

provision of financial education initiatives to the FSCA.

Whatever form the member surveys take, there needs to be a clear

and auditable report trail.

Troubleshooting 1. Reaching members to educate them

Funds should consider a compulsory item in their member

onboarding welcome packs – namely, that all new joiners attend

an induction session and provide feedback to a presenter. This can

be a hard-copy, SMS or online survey or a combination of these to

reach all members.

If in-person onboarding is not feasible, then recorded webinars

can be made available at HR, perhaps along with a dedicated laptop

that members can access, for those employees who do not have a

workstation or personal laptop/computer.

Graphic posters with QR codes that link to recorded webinars

can be placed in pause areas. Keep these short and in low resolution

to allow viewing on smartphones.

Retirement funds must adopt an

approach that is easy to understand.

Troubleshooting 2. How often do you need to communicate?

Communication needs to be delivered where possible as a series;

it is no longer sufficient to publish just one article on a topic.

Communication should guide a member from having very little

or no understanding to becoming comfortable with the topic. For

example, a series on credit could include: What is credit? What items

should you NOT use credit to buy? How to obtain credit, how to

maintain a good credit score, what to do if you have too much debt

and debt versus savings, etc.

It’s always been good practice to educate members,

but from March 2026, it will become a requirement.

Retirement funds and financial institutions now have

both the opportunity and the obligation to ensure their

members are informed, empowered and confident in

their financial decisions.

Zeldeen Müller, CEO of inSite Connect and

creator of AgendaWorx.com AI


Blue Chip Issue 97

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