1. INSIGHT
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JUNE 2015 • R29.95
REGULATION
Dixon comments
on RDR
BEST OF THE BEST
2015 FIA Awards
announced
FINANCIAL PLANNING
Passion for the
advice process
PASSION
FOR ADVICEFOR ADVICE

2. By Kobus Kleyn, Certified Financial Planner
F i n a n c i a l P l a n n i n g
Introducing the 9 ‘P’ Process…
Instilling passion in financial planning
52
have a strong passion for financial planning and believe
that the process outlined in this article will have a positive
impact on my fellow financial professionals andI It is important to try to find something in life which you are
intermediaries as well as other stakeholders within the
passionate about. Although this passion can take many
financial advice profession.
different forms it helps to find it in your chosen profession. If
you are like me then you might find your passion within the
My firm belief is that financial planning is a profession rather
process of financial planning and financial services. You must
than an industry and that we should always conduct
learn to experience the joy and excitement in working with
ourselves as professionals within this profession. Although
figures, working with clients, changing clients’ lives, watching
I write from a financial planning perspective most of the
a well-conceived financial plan come together and
concepts discussed in this article can be equally applied to
achieving record product sales to name a few.
the short term profession.
Without further ado allow me to introduce my 9 ‘P’ Process
which will guide you on how to achieve professional status as
Once you have the passion it is important to find the purpose
a financial planner. Those of you who have a passion for
to go with it. I believe if you have answered “yes” to my three
financial planning and apply this passion to the best interest
opening questions you should have a good understanding of
of your clients and our profession will no doubt be familiar with
the purpose in your chosen profession. Both your passion and
many of these Ps.
your purpose will be tested from time to time as you and your
clients hit tough times. Financial planners are true
The first step in the 9 ‘P’ Process is to ask three questions.
entrepreneurs (we mostly work for ourselves) who have to
learn to adapt to setbacks and run with opportunities. When
things get tough we need to find motivation from within and
inspiration from outside.
1. Passion
2. Purpose
Q2. Do you want to build
your wealth while you are
changing lives?
Q3. Do you want to change
lives and build wealth with
passion, purpose, passive
income and a balanced
lifestyle?
Q1. Do you want to change
people’s lives?

3. F i n a n c i a l P l a n n i n g
53
3. Positioning
6. Practice building
7. Passive income
4. Proposition
8. Professionalism
5. Personal branding
9. Profession
your brand, ethics and values. Committing to pro-bono work,
volunteering for charities and giving back to your profession
Now that passion and purpose are bedded down you are
can all play a part in reinforcing your personal branding.
ready to position yourself within the profession. In doing so you
may need to make some tough choices or changes,
depending on what ‘space’ you currently occupy. One of
these choices centres on what type of adviser you would
Practice building is the core of my 9 ‘P’ Process as it touches
like to be.
on the methods and processes needed to run a sustainable
business. You should focus on setting up an office-based
Under the current Retail Distribution Review (RDR) proposals
practice with the necessary infrastructure, support staff, and
you could practice as an IFA, multi-tied or tied agent, for
systems and technology to deliver your value proposition as
example. You must also consider whether you want to
early as possible. Over time this evolves into setting up
operate on a holistic financial planning basis or specialise
partnerships, specialisations, succession planning and
within certain fields such as healthcare, short term insurance,
associations that will ultimately lead to a ‘one stop service’ for
investment or long term assurance. The latter decision is not
your clients. A focus on practice building will ensure that you
too complex, though it may become more intriguing post-
operate a productive and profitable practice.
RDR. My suggestion is to be proactive and work out your
‘positioning’ as soon as possible.
Imagine a situation where you do not have to work for your
money, but where your money works for you. You achieve this
The proposition step is the fourth in the 9 ‘P’ Process and
by creating passive income streams from various sources
requires that you create a long term value proposition for
over many years. Success hinges on building the assets under
your clients. Remember that a value proposition is not
management in your practice and generating ongoing fees
created overnight and that many parts of your proposition
through a diversified product and business model. Any
are intangible. Some of the more important ingredients in
financial planner can build a passive income under the
your value proposition include your accreditations,
current dispensation and the potential should increase post-
designations, qualifications, affiliations and associations.
RDR. Passive income can also flow from you own share and
Continuous professional development is a critical
property portfolios, built up over the years.
component of your value proposition and will certainly
improve trust between yourself and your client –
remember that trust is a key pillar of financial planning
and relationship building.
This ‘P’ is the ultimate objective and we should all gear
ourselves towards achieving professionalism over the long
term. In doing so we improve our value proposition, ensure
the sustainability of our practice and win the right to charge
This ‘P’ is crucial to long term sustainability and
fees accordingly. How do we achieve professionalism? Key
competitiveness, especially post-RDR. Personal branding is
ingredients include propriety, membership to professional
much easier to develop today than 15 years ago. Social
bodies and affiliations to the likes of the FPi, MDRT, FIA and
media provides each of us with cost effective tools to not only
FISA to name a few. You must commit to a code of ethics,
build our personal brand but also to create a presence within
deliver on your promises and at all times present the
our profession and our target markets.
professional image your clients expect from you.
One of my favourite ‘tools’ is LinkedIn; but do not be tricked
into thinking that you can quickly convert this platform into a
direct marketing solution – you will soon become disillusioned.
Lastly we all have a duty to our families, our clients, ourselves
Your first point of call should be to build your presence before
and our ‘industry’ to evolve into a profession. The sooner the
using indirect marketing to sell your value proposition without
better, because then we can be treated in the same way as
abusing the connections in your network.
the medical, legal and accounting professions, among
others. To achieve this profession we must all commit to
It is worth remembering that while your clients buy your brand
consumer-focussed legislation such as TCF and RDR. If we
and not the large brands you represent – especially when it
can embrace this change we will be on the verge of
comes to personal financial planning – you still need to
greatness.
surround yourself with strong product brands that underpin