Bachelor of Commerce: Financial Planning

Purpose

This section must be read in conjunction with paragraph C2 of this document.

The financial services industry is a very important role player in the Republic of South Africa. The Financial Advisory and Intermediary Services (FAIS) Act is now being implemented which calls for proficient, highly skilled individuals. The proposed degree is designed to shape the development of individuals in this industry to become qualified financial advisors. The proposed degree, although it carries certain features of a general BCom degree, is highly contextualised for the financial services industry, for example, modules dealing with financial planning carry a weight of 34% of the total programme credits.

The financial planning, insurance and investment sub-fields are well catered for in this programme. The BCom (Financial Planning) programme entitles graduates to apply for membership of the Financial Planning Institute at associate level. Registration with the Financial Services Board (FSB) is also possible.

Looking at the number of employees in the financial services industry, it is clear that the social and economic transformation of members from previously disadvantaged communities will be enhanced.

The degree in financial planning, NQF Level 6, should assist employees in the financial services industry to make a meaningful contribution to wealth creation, productivity in the workplace as well as for management development in general.

Rationale

According to the Financial Advisory and Intermediary Services Act, 2002 (Act 37 of 2002), all financial advisors operating within the financial services industry must possess certain qualifications. Managers in the financial services industry require management knowledge and skills, a sound understanding of the financial services environment, including broad financial and legal aspects, and more technical expertise relating to financial planning.

The proposed BCom programme in Financial Planning is designed to meet the needs of learners in the sector who require both management and specialist knowledge and skills. UPE has the support of INSETA. The programme's target market includes managers or supervisors of small teams or business units in medium to large organisations, as well as managers in SMMEs that are part of the financial service sector. In addition the programme provides an opportunity to fast track learners from previously disadvantaged groups into managerial posts through the acquisition of the requisite knowledge of the financial services industry and management skills. In this manner, the industry intends to build a pool of learners with management expertise and thereby to meet its employment equity targets.

The successful completion of the BCom programme will entitle candidates to apply for registration as an Associate Financial Planner with the Financial Planning Institute.

The market research and numbers are supplied by the financial services sector.

Determining the exact size of the insurance industry is problematic due to the lack of accurate statistics. According to INSETA, the last statistics released by Statistics South Africa at the beginning of 1998 indicates that there were around 80 000 people formally employed in the sector. There are however a number of small and informal enterprises in the sector (often owner-managed insurance brokerages) which are not formally recognised or recorded in a national database. On the basis of information sourced from the SRS database it is estimated that there are currently approximately 95 000 employees in the insurance sector in South Africa.

SARS data suggest that the number of employers in the insurance sector amount to 1772 and the estimated number of employees to 29 395. Further research conducted by INSETA indicates that 8% of employees are senior officials/managers and 6% are professionals which implies a target market of 0,14 x 29 395 or 4 115 potential students countrywide.

Prospective students should meet the entrance requirements of the university. Students must also comply with the language policy of the university. Entrance requirements for a BCom degree require mathematics as stipulated in section four of this document.

Recognition of Prior Learning

The university may exempt candidates from attendance and assessment in a module on the grounds of their having obtained credit for the same or equivalent modules prescribed for another qualification of the university. Candidates may also be granted recognition for any module for which they had obtained credit for another or the same qualification, at another institution: provided that candidates who are already in possession of a first qualification shall be granted recognition towards a second qualification in respect of modules previously completed only up to a maximum of half of the prescribed credits required for the second qualification.

Access to the Qualification

All candidates must have a grade 12 school leaving certificate with matriculation exemption. A weighted matriculation average mark of 55 percent, as well as a mark of 50 percent in Mathematics on the Higher Grade or 60 percent in Mathematics on the Standard Grade is also required. The mathematical skills are required due to the quantitative nature of a BCom degree.

Candidates who do not possess the required formal entry qualifications may nevertheless be granted admission to the programme by means of the recognition of prior learning (RPL) on the basis of relevant experience and training. Candidates will be assessed in terms of literacy, numeracy as well as their back ground in financial planning.

Level, Credits and Learning Components Assigned to the Qualification

Learning Component

- Fundamental

> 58 Credits, NQF Level 5.

- Core

> 196 Credits, NQF Level 5.

> 112 Credits, NQF Level 6.

Total: 366 credits.

Specific outcomes and assessment criteria

• Identify and explain business management principles and practice in order to provide financial planning solutions.
• List and explain the different forms of business ownership.
• Apply information technology as a major tool for financial advisory purposes at the customer interface.
• Interpret the basic elements of financial statements.
• Use the evidence in financial statements to make financial decisions.
• Apply financial mathematics as well as statistical concepts in risk analysis at the personal planning as well as corporate level.
• Perform financial calculations using a financial calculator, financial tables or a spreadsheet.
• Understand the underlying principles that influence the interdependence of key economic indicators, for example, share indices, business cycles, etc.
• Demonstrate an understanding of the functioning of financial markets.
• List and explain the role of financial intermediaries in the South African financial markets.
• Understand and apply the communication skills as required in the financial services sector.
• Prepare comprehensive reports for clients.
• Understand and apply the basic principles of business ethics in a financial environment.
• Understand the underlying fundamental principles governing South African law.
• Interpret the laws governing the South African financial environment.
• Offer professional advice on the management of personal financial risks.
• Demonstrate knowledge and insight into the legislation governing personal financial planning.
• Understand the underlying factors determining supply and demand in the South African economy.
• Demonstrate an understanding of financial markets by explaining:

> The concepts of product, price, promotion and place.

> The principles of market segmentation.

> The characteristics of various market segments.

• Understand the underlying principles of human behaviour and individual personality.
• List and explain the various aspects of services marketing when presenting financial services.
• Understand and apply the financial planning skills required for corporate clients.
• List and explain the features of individual and group insurance policies as used by corporate clients.
• Demonstrate knowledge, understanding and application of the risk management process.
• Apply method of risk management in different scenarios.
• Demonstrate knowledge and understanding of the primary legislation that impacts on retirement funds.
• Offer professional advice on retirement planning strategies.
• Demonstrate knowledge and insight into the Estate Duties Act with specific reference to insurance products.
• Demonstrate knowledge and understanding of negotiating contracts in long-term insurance, collective investments, short-term insurance and health care insurance.
• Understand the basic principles of South African labour law and its impact on sound labour relations.
• Apply the principles of modern portfolio theory (MPT) as developed by Harry Marcowitz and others.
• Describe and apply the basic principles underlying the management of a business.
• Identify feasible business strategies applicable to the financial services industry.
• Compile a strategic business plan.
• Analyse complex financial planning problems as presented in a comprehensive case study, hereby integrating all the basic principles applicable to the financial planning environment.

Critical outcomes

Learners should demonstrate their ability to

• Identify and solve problems related to his/her own life and the management of a team or group in which responses show that responsible decisions using critical and creative thinking have been made. The learner is required to apply knowledge of management to different situations in a financial service environment.
• Work effectively with others as a member of a team, group or organisation as management implies the management of a group or team.
• Organise and manage oneself and one's activities responsibly and effectively in that it is expected that the learner will be responsible for his/her own earning and for organising his/her own work and allocated tasks and those of a group or team responsibly in a financial services environment.
• Collect, organise and critically evaluate information. These competencies are built into the assessment criteria in modules and the learner is required to do research projects and compare information from the main and financial sections of a daily or weekly newspaper.
• Communicate effectively using visual, mathematics and language skills in the modes of oral and/or written presentations. These competencies are an integral part of all the modules.
• Use science and technology effectively and critically showing responsibility towards the environment and the health of others in cases where computer end user standards are included as electives. The financial services industry is highly computerised and it can be technology as part of their work processes.
• Demonstrate an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation in that references are made wherever applicable to the learners' part in the big picture and how his/her actions have implications and consequences of non-compliance are highly regulated in a financial services environment.

Associated assessment criteria:.

Criteria relevant to the competencies listed in "the specific outcomes" will include demonstrable capacity to produce practical results for example business plans, personal financial plans, corporate financial plans, a portfolio of work as well as the capacity to research critical issues. Written examinations will assess overall learning but will not contribute more than 50% to a student's mark in individual modules.

Integrated Assessment

A range of integrated assessment strategies will be applied across all modules to ensure that the required outcomes are met. Assessment tools include portfolio development, analysis of projects, responses to case studies as well as traditional examinations, which shall include theoretical and practical questions.