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1 year ago

Blue Chip Issue 86

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Blue Chip Journal 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. Visit Blue Chip Digital: https://bluechipdigital.co.za/

BLUE CHIP FPI UPDATES |

BLUE CHIP FPI UPDATES | CEO message Lelané Bezuidenhout, CFP®, CEO, Financial Planning Institute of Southern Africa Time linked with financial planning, done right The CEO of Financial Planning Institute of Southern Africa shares FPI’s latest news. Is the earth spinning faster and how can we link this to financial planning? The world is moving at a pace unknown to the ’80s, ’90s and early 2000s. It prompted me to google: “Is time running faster than before?” Google’s answer: “It’s part of the nature of life for time to accelerate as we age.” Did Google just tell me that I am getting old? I googled again as I did not like the first answer, and this time it shot out: “The earth is spinning faster and recently recorded its shortest day ever. June 29, 2022, was 1.59 milliseconds less than one average day.” Now that’s less of a personal disaster for me, but not necessarily for the worldat-large. This made me think, and appreciate, that the most valuable commodity we have is time. Time linked with financial planning, done right It is well known that the basic elements and economic principles of investments are reward (return), risk and time. Far too many consumers leave retirement planning for their mid-40s to early 50s. This is too late. Investment, as we know, is not a short-term thing; it is long-term in its nature. The time-value-of-money should never be underestimated. But how do we get consumers to realise this? It does not help that pending legislative changes will make it possible for consumers to make withdrawals from their retirement savings before retirement. But in this lies the opportunity for financial planning and professional financial advice as it presents an opportunity to help consumers with, not just retirement planning, but holistic financial planning. More than eight out of 10 CFP® professionals responding to the Financial Planning Standard Board’s (FPSB) Future of Financial Planning Practice survey agree that consumer demand for financial planning will increase in the next five years. We also see the demand for FPI professional members growing as an increasing number of financial institutions, especially in the banking sector who are starting to employ only CERTIFIED FINANCIAL PLANNERS® or designated financial advisors. We encourage financial advisors who are not professional members of FPI yet to contact us and establish how close they are to being awarded a professional designation. Some updates from FPI I just returned from the FPSB Chief Executive Committee meetings held in Washington DC. I am humbled to act as chair of these meetings and confirm that the discussions focused on the future of financial planning, especially as it relates to generational financial planning and the ever-changing global financial landscape. Great discussions were held around crypto assets and decentralised finance (DeFi) and how they fit into financial planning. The FPSB also confirmed that the new financial planning competency framework, which includes the psychology of financial planning, will come into effect on 1 April 2023. FPI will subsequently align and localise its curriculum and standards accordingly. If you have not yet registered for the 2023 Annual Refresher Workshop, please do so – spots are limited and selling out fast. This is the masterclass of the year with great insights from 8 www.bluechipdigital.co.za

We encourage financial advisors who are not professional members of FPI yet to contact us and establish how close they are to being awarded a professional designation. speakers such as Wessel Oosthuizen, CFP®, Errol Meyer, CFP®, the 2022 FPI Financial Planner of the Year, Palesa Dube, CFP®, and FPI’s former head of policy and engagement David Kop, CFP®. I will also be giving an update on Ombudsman cases. Visit www.fpi.co.za to register for this event. As we enter 2023, I want to sincerely thank you for your support during 2022. Please be on the lookout for a consumer survey, to be run by +-15 FPSB affiliates globally, that will come out in 2023. The main purpose of the survey is to establish the value of financial advice and to gain insights into consumer awareness of who and what a CFP® professional is. As we enter 2023, I want to sincerely thank you for your support during 2022. As alluded to earlier, 2022 flew by in a wink. May 2023 be a bit of a slower year, with more time for us to collectively reach new heights as a profession. Until next time, Lelané Bezuidenhout, CFP®, CEO, Financial Planning Institute of Southern Africa www.bluechipdigital.co.za 9

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