1. Trustworthiness
In any relationship trust is of critical importance and your Financial Advisor/ Planner will be walking a long road with you to assist in most of life's changes because different life changes happen your Advisor/Planner should be informed to assist and make clear what impact these changes will have on your investments and financial future in short your Advisor /Planner should be as close to you if not closer than your life partner.
2. Great Communication Ability
Your Advisors/Planners ability to communicate complex financial issues in clear; plain and concise words is very important to you as you don't want him or her to speak and you not understanding any part of your financial plan.
3. Ability to educate you
Role of the Advisor/Planner is not simply to sell you an offering but to raise your conscious understanding of your financial situation.
4. Advisor?Planner must be qualified
Gone are the days when just anyone can be an Advisor the FSB has put experience and educational responsibilities on all Advisors and Planners (Those representing the larger will most certainly be compliant in this regard)
5. Ethical Responsibility
All Advisors/Planners are required to adhere to strict ethical codes and have to work in the best interest of their clients.
6.Experience Requirements
Advisors and Planners generally work about 2 years under supervision to ensure that you the client always have the peace of mind that even if your Advisor/Planner himself/herself is not that experienced their activities and advice is supervised by a veteran of the industry.
Additional considerations when choosing a Financial Advisor /Planner in South Africa
1. Licensing with the FSB
The FAIS Act makes it mandatory that your Advisor/Planner is licensed with the FSB (Financial Services Board) or is working under supervision of a Licensed FSP(Financial Services Provider) once again working with one of the larger insurance houses will take care of this.
2. Employer
Working with a larger insurance company obviously has the advantages of stability and peace of mind that the Company has the resources to take care of you when the time comes for them to fulfill their promises.
3. Indemnity Insurance
Professional Indemnity Insurance protects the client should the Advisor/planner have a claim made against him/her for bad judgement or negligence.
4. Services
A holistic view has to be taken of your Financial Needs and therefore its important to go with an Advisor/Planner who has the backing of a corporation with the experience and expertise to take of your Full Comprehensive Financial Needs through all life stages
5. Remuneration
An Advisor/Planner can be paid via a commission; professional fees or a combination of the two. Those paid on a commission have an additional incentive to make sure that you the client are well taken care of as they may have penalities and commission claw backs if everything not 100%
When you decide to meet an Advisor/Planner be sure to ask any questions relating to any of the above ; you are encouraged to ask as much questions as you like and a good Advisor/Planner will have these on hand for you. Please stay clear of of any Advisor/Planner who refuses to be totally forthcoming.
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