Reconceptualising the Financial Planning Curriculum

 

 

I recently completed my PhD thesis based on reconceptualising the six-step financial planning process as it is applied in the South African context. The six-step financial planning process is globally applied among 26 different countries by Certified Financial Planning® professionals as the practice standard of providing financial advice. This process is said to be designed to ensure that the financial advice that is provided by CFP® professionals is suitable, based on the needs of the consumer. However, given the diverse cultures in South Africa, it is argued argues that the six-step financial planning process (as it is currently applied) may not be suitable, as it requires contextualisation based on the unique needs of South African consumers. This is attributed to the fact that the various population groups in South Africa have their own sets of beliefs, values and cultural practices, and thus view aspects such as wealth (the creation, preservation and transference thereof), marriage, death and retirement, differently. Thus, financial planners who are not knowledgeable about different cultures, diverse financial needs, or the provisions of customary law, may not be able to provide suitable advice. The study thus aimed to reconceptualise the six-step financial planning process to be more inclusive and representative, in order to better serve the financial planning needs of South African consumers. 

 

This study has made a contribution to the financial planning body of knowledge by presenting a reconceptualised perspective of the six-step financial planning process, and providing new knowledge on each of the associated six steps and their suitability in a South African context. This study also provided justification and evidence for the inclusion of aspects within the six-step financial planning process that enhance the understanding of cultural diversity and needs of Black households in particular. Justification has also been provided for the inclusion of cultural aspects and diverse needs of Black consumers the in the academic curriculum of FPI and FSCA recognised qualifications, as well as the facilitation and learning outcomes of business and product-specific training that FSPs are required to provide to their representatives. The study findings also have implications for the development of the academic curriculum and assessment materials for CFP® professionals by recognised education providers, the FSCA regulatory examination, and the FPI professional competency examination. In addition, the study has provided evidence for the need to develop financial products, or customise existing financial products, that address the needs of Black households – especially culture-specific financial needs such as black tax, lobola and funding for initiation schools. 

 

Given that I am a financial planning academic and coordinator of the BCom Financial Planning programme at the NMU. I would like to use this opportunity to showcase some of the findings of the study and illustrate ways of improving the financial planning curriculum that is used to train financial planners to give financial advice to South African consumers, Black consumers and households in particular.