Priority target
After more than a decade in the financial planning sector, both Fourie and De Kock reveal the biggest change has been the ‘increased professionalism’ of many of the advisers in South Africa.
“The drive to become a profession has been a priority for the FPI, along with the continued support from members like ourselves,” says Fourie.
The more exciting news, he adds, is that as part of the incoming RDR regulations, the FSB will now recognise the designation of ‘financial planner’ so that only advisers who are FPI qualified and meet CFP standards can call themselves a financial planner.
“This is a great leap taken to professionalise the industry and recognise those individuals who have taken the time and effort to uplift their knowledge and skills by completing the postgraduate studies and sitting for the CFP board exam,” says Fourie.
This step towards professionalism has also seen the emergence of paraplanning as a career in its own right, adds De Kock.
“As in the UK, I can see this area developing over the next few years in terms of qualifications and standards,” he says.
Similar to other markets with growing regulatory oversight, a key concern for the future is consolidation in South Africa’s financial planning industry.
“Due to the increased compliance requirements, many sole proprietors have joined larger firms or become tied agents for product suppliers,” says Fourie.
Asked whether Ascor would consider such a merger, the duo is adamant they would never compromise the firm’s independent status, despite receiving a number of offers.
Says Fourie: “We have not considered any of the various propositions we have received to merge with larger players in the industry. We value our independence as advisers.”
Tech heads
Technology plays a crucial role in Ascor’s success, says De Kock, revealing that one of the biggest challenges for the firm was identifying and implementing the correct software to assist them in managing and tracking all interactions with their clients.
After researching and trialling numerous software systems used by IFAs, the firm eventually settled on Xplan, provided by Australian software company Iress. Using Xplan, Ascor can combine and systemise the planning and client relationship management functionality.
“This allows the product being delivered to be of a consistent professional level, irrespective of the adviser providing the advice,” Fourie says. “This software also enhances the speed at which a new adviser can be incorporated into the practice and reduces the time necessary for training.”
To supplement this, the firm also makes the most of social media, actively using Facebook, LinkedIn and Twitter to blog about topics affecting clients and the wider advisory community.
“It is important to monitor the traffic on our Facebook page as this influences search engine optimisation,” says Fourie.
Making use of video calling and other technology, Ascor has been able to service clients across the globe, which has so far negated the need to open additional offices.
