Diploma in Financial Planning

Purpose

The qualification attempts to ensure that learners are competent to practice as financial advisors in the field of financial planning and to provide professional financial advisory services to a range of clients. The qualification will ensure that South Africa is provided with a pool of capable and qualified financial advisors that will secure a foundation of knowledgeable and innovative advisors across the financial services environment.

The qualification has been developed as a vocational qualification, focussing on industry-specific knowledge, for learners who would like to specialise within the Financial Planning or broader Financial Services Sector. The Diploma in Financial Planning will equip learners with the knowledge and skills they need to operate ethically and responsibly as financial advisors. Learners will be able to collect the appropriate and available information to analyse a client's financial situation and to recommend the best suitable financial solutions that align with the needs of the client.

Learners will gain insight into the economic trends that have an influence on the financial services sector, the regulations governing the environment and how they impact financial decision-making, professional standards and ethics for financial advisors and an integrated practical case that will equip learners to apply their knowledge in a "real-world" scenario.

Rationale

South Africa continues to face devastating levels of unemployment, coupled with concerns over the availability of suitably qualified and skilled workers. Skills shortages and unemployment are regarded as factors contributing to South Africa's constrained economic growth and development. The importance of identifying the skills needs in South Africa is becoming increasingly important and the need to ensure that education and training are available to address these needs is critical for the stability and growth of the economy (National List of Occupations in High Demand, Government Gazette No: 43837, 2020).

Research conducted by DNA Economics for the Department of Higher Education has identified the Financial Services Sector as a sector that is impacted by the shortage of critical and professional skills within various job categories. The sector is further impacted by globalisation and rapid digital transformation which leads to further skills gaps. The research is supported by the findings presented in the INSETA Sector Skills Plan for 2020-2025.

Certain job categories/skills in the sector have been highlighted as critical skills that need to be addressed to restore the shortage. The job categories identified in relation to the Financial Services Sector as critical skills jobs are as follows:

• Financial Investment Advisor
• Finance
• Investments.

The Diploma in Financial Planning has been developed as a vocational qualification, which focuses on professional and industry-specific knowledge. The qualification provides for a sound understanding of general theoretical principles and specific industry procedures with practical application of knowledge. The qualification equips learners with the necessary knowledge and skills to address the critical skills shortage for Financial Advisors (OFO Code: 341301001) as a sub-specialisation for Financial Investment Advisors (OFO Code: 241301) in South Africa, at NQF Level 6. The qualification has been aligned with the Financial Advisor Competency Profile and Curriculum as set out by the Financial Planning Institute of Southern Africa. The qualification provides learners with the basic introductory knowledge, cognitive tools, and practical techniques to function effectively within this environment.

The financial services environment is highly regulated. As such the qualification was developed to meet the fit and proper requirements as per the Financial Advisory and Intermediary Services (FAIS) Act, 2002 (Act No 37 of 2002) and Board Notice 194 of 2017. The knowledge and skills that learners will acquire through this qualification will equip them to enter the sector as professionals with a good understanding of what is required of them to render advice in an ethical and professional manner.

The qualification allows learners to register as Registered Financial Planners (RFP) with the Financial Planning Institute of Southern Africa (FPI) upon fulfilling the Institute's competency exam requirements. Learners will be able to apply for registration with the Financial Services Conduct Authority as Category 1 key individuals or intermediaries, in terms of Board Notice 194 of 2017, with Continuous Professional Development (CPD) training as a further requirement to remain FAIS Compliant.

The institution supports the notion that education, in particular Higher Education, is a major contributor to the growth of South Africa's economy by providing quality education, upskilling the youth and providing opportunities to address unemployment in South Africa. For Higher Education institutions to successfully contribute to the economic growth of the country and respond to unemployment, it is essential to develop qualifications that are aligned with the critical skills shortages identified. By developing qualifications to address these needs, institutions demonstrate their commitment to achieving the goals and addressing the key focus areas highlighted in the White Paper for Post-School Education and Training (2013), for the development of qualifications "to address the scarce and critical skills needed for South Africa's economic development".

The institution recognises that education has the potential to transform the lives of learners and, consequently, the communities and families they represent. Providing access, broadly understood to encompass both formal and epistemological notions of access to higher education is a starting point for initiating the process of transformation, which has the learners' identity, understanding of the world, and academic knowledge as the focus.

The Diploma in Financial Planning will therefore supply qualified graduates to the growing industry demand.

The qualification offers the following work opportunities on completion

• Self-employed Financial Advisors or Brokers.
• Tied Agents.
• Intermediaries working within various roles in the financial services environment.
• Para-planners.

The Diploma in Financial Planning provides access to learners who passed Grade 12 with a Diploma endorsement to enter Higher Education, thereby widening access and providing opportunities for learners to enter into a qualification that is industry-specific, which they previously might not have been able to do. The Financial Planning Institute of Southern Africa, together with international professional bodies, and professionalised professions within the financial planning field, offers learners the opportunity to follow a rewarding career path, with the option to further learning which will enable them to register for higher professional designation memberships, e.g., Certified Financial Planner (CFP®).

As per the HEQSF, on completion of the qualification learners will meet the minimum entry requirements for admission to appropriate NQF Level 7 qualifications. Accumulated credits may contribute towards admission into a cognate Advanced Diploma and may also allow for access to an appropriate Bachelor's Degree in accordance with the entry criteria of respective institutions.

Recognition of Prior Learning (RPL)

The institution's existing RPL policy and practices will be applied in relation to the Diploma in Financial Planning. The principles of recognising learning that has already taken place will be applied at a modular level.

The institution follows the Council on Higher Education (CHE) Policies on the Recognition of Prior Learning, Credit Accumulation and Transfer, and Assessment (CHE, 2016) and in accordance with the policy, learners applying for admission to the qualification via RPL can only be exempted from a maximum of 50 % of the qualification modules.

Learners need to be able to demonstrate their prior learning either through evaluation/verification and/or assessment. Each application will be considered on a case-by-case basis and learners will enter into discussion with the RPL advisor to determine the requirements for the RPL assessment/portfolio of evidence.

Although learners are rigorously assessed, as per the principles of RPL, there is no guarantee that a learner will gain admittance into a qualification or receive exemptions from modules. The institution adheres to the guidelines set by the CHE (CHE, 2016), and only 10 % of a cohort will be allowed admittance to a qualification on an RPL basis.

Entry Requirements

The minimum entry requirement for this qualification is

• Senior Certificate, NQF Level 4, with endorsement

OR

• National Senior Certificate (NSC), NQF Level 4, granting access to Diploma studies.

OR

• National Certificate (Vocational) (NCV), NQF Level 4, granting access to Diploma studies.

This qualification consists of the following compulsory modules at NQF Levels 5 and 6, totalling 377 Credits.

Compulsory Modules, NQF Level 5, totalling 171 Credits.

• Academic Literacy, 15 Credits.
• Computer Literacy (Word, Advanced and Outlook), 16 Credits.
• Introduction to the Financial Services Environment, 10 Credits.
• Economics for Financial Advisors, 20 Credits.
• Computer Literacy Advanced (Spreadsheets, Advanced Spreadsheets, Database and Presentation Graphics), 10 Credits.
• English Fundamentals, 15 Credits.
• Fundamentals of Accounting, 10 Credits.
• Introduction to Law for Financial Advisors, 15 Credits.
• Wills and Administration of Deceased Estates, 15 Credits.
• Health Planning, 15 Credits.
• Retirement Planning, 15 Credits.
• Principle of Insurance, 15 Credits.

Compulsory Modules, NQF Level 6, totalling of 206 Credits.

• Retirement Fund Management and Administration, 10 Credits.
• Ethics, Standards and Compliance for Financial Advisors, 10 Credits.
• Investment Planning, 15 Credits.
• Principles of Business Financial Planning, 15 Credits.
• Marketing for Financial Advisors, 15 Credits.
• Taxation for Financial Advisors, 15 Credits.
• Short-Term Insurance: Personal Lines, 10 Credits.
• Short-Term Insurance: Commercial Lines, 10 Credits.
• Financial Management for Financial Advisors, 15 Credits.
• Trust Law, 15 Credits.
• Employee Benefits, 13 Credits.
• Business Management, 13 Credits.
• Digital Transformation in Financial Services, 15 Credits.
• Management and Leadership, 15 Credits.

Integrated Case Study, 20 Credits.

1. Demonstrate the ability to compile and write a professional proposal for clients relating to financial decision-making recommendations that suit clients' needs.
2. Demonstrate an understanding of Information and Communication Technology (ICT) and identify and discuss the latest digital transformation trends within the financial services environment.
3. Demonstrate an integrative and contextualised understanding of the financial services environment and the impact that economic systems have on the environment.
4. Apply knowledge of legislation, compliance and ethics in a financial planning context in South Africa.
5. Apply knowledge of legislation, taxation, economics and accepted financial planning principles to solve the financial needs of an individual and advise on insurance investment solutions.
6. Apply knowledge of legislation, taxation and business principles to advise a business on financial and insurance solutions.
7. Analyse clients' financial information and advice on potential financial solutions based on the collection of information and identification of client needs.
8. Demonstrate an understanding of the principles and practices that financial advisors need to apply when operating their own practice.
9. Demonstrate an understanding of the principles, processes and governance structures required for the management and administration of retirement funds.

Associated Assessment Criteria for Exit Level Outcome 1

• Demonstrate knowledge of the financial terminology used in the financial services environment.
• Analyse and summarise the client's financial position and needs within the context of financial planning.
• Write a proposal with recommendations for financial decision-making in a professional and concise manner.

Associated Assessment Criteria for Exit Level Outcome 2

• Utilise Information and Communication Technology (ICT) to effectively collect, analyse, organise and communicate information.
• Identify and discuss the trends in digital transformation and the impact thereof on the financial services environment.
• Discuss how digital transformation is transforming the financial services environment.

Associated Assessment Criteria for Exit Level Outcome 3

• Discuss the role that the financial services environment, as an ecosystem, plays in the economy.
• Identify and describe the types of risks that impact the financial services environment.
• Define economics and differentiate between micro- and macroeconomics.
• Identify the factors that impact a country's economic system and discuss the effect thereof on the financial services environment.
• Identify and discuss key regulations governing the financial services environment.
• Explain the concepts of demand, supply and equilibrium within the context of financial services and discuss the effect of a shift in demand and/or supply.

Associated Assessment Criteria for Exit Level Outcome 4

• Identify and discuss the legislation impacting the financial planning practice in South Africa and determine the impact and scope of its application to personal and business financial planning.
• Integrate the requirements of the Codes of Conduct of FAIS into the financial planning environment.
• Identify and discuss the Codes of Conduct and legislation pertinent to businesses in South Africa.
• Identify and discuss the professional competencies and skills of financial advisors.
• Explain the value and importance of ethics and professional standards within the financial planning environment.
• Evaluate and discuss the ethical behaviour of financial advisors.
• Identify and apply legislation applicable to the management and administration of deceased estates.
• Apply knowledge of legal theory regarding contracts.
• Apply knowledge of insurance law to analyse and solve client needs.
• Explain the importance of the Law of Succession and Law of Delict within the context of Financial Planning.

Associated Assessment Criteria for Exit Level Outcome 5

• Identify and discuss the financial principles to be followed to analyse a client's needs.
• Examine the financial tax implications of a client's financial product profile.
• Identify and discuss the legislation that can be applied for tax rebates/relief for individual clients.
• Discuss the impact that the economy has on the financial needs of clients, within the context of financial planning.
• Identify and discuss the short-term insurance products available to solve the needs of individual clients.
• Discuss the importance of insurance and outline the various classes of insurance.
• Examine legislation pertaining to insurance.
• Identify the needs of a client for an investment and advise the client on the most suitable investment vehicle.
• Identify and discuss the characteristics and workings of investment markets.
• Calculate the income tax payable on a deceased estate.
• Identify and discuss allowable deductions on deceased estates as determined by legislation.
• Discuss the difference between an intestate and testate succession.
• Discuss various tax principles that relate to the financial planning environment and have an impact on clients' financial decision-making.

Associated Assessment Criteria for Exit Level Outcome 6

• Identify and discuss the financial principles to be followed to analyse a business's needs.
• Examine the financial tax implications of a business's financial product profile.
• Identify and discuss the legislation that can be applied for tax rebates/relief for businesses.
• Identify and discuss the commercial-line insurance products available to solve the needs of business clients.
• Identify and discuss the employee benefits that businesses can offer to their employees.

Associated Assessment Criteria for Exit Level Outcome 7

• Discuss and apply the financial planning six-step process.
• Analyse and interpret a client's financial information.
• Describe the lifecycle of a client within the context of financial planning.
• Evaluate a client's propensity to risk according to the various life stages of the client.
• Summarise and present proposed recommendations that meet the needs of a client.
• Discuss the requirements for an individual to form a trust.
• Identify and discuss the various types of trusts and the parties associated with trusts.

Associated Assessment Criteria for Exit Level Outcome 8

• Identify and explain the business management principles that will contribute to the effective management of a practice.
• Discuss effective ways in which financial advisors can promote their own practices.
• Identify and discuss processes that financial advisors could follow to form a client base.
• Examine the importance of good leadership when managing a practice.

Associated Assessment Criteria for Exit Level Outcome 9

• Identify and explain the business management principles that will contribute to the effective management of a practice.
• Discuss effective ways in which financial advisors can promote their own practices.
• Identify and discuss processes that financial advisors could follow to form a client base.
• Examine the importance of good leadership when managing a practice.

INTEGRATED ASSESSMENT

Boston has adopted a range of fit-for-purpose assessment strategies (i.e., the specific number, configuration, weighting and combination of assessment events) per qualification and per module. The level and complexity of the qualification and/or module determine the assessment strategies. Each assessment strategy consists of various assessment typologies (e.g., summative, formative), that can take on the form of various assessment modalities (i.e., the particular type of instrument by which learners are assessed) used for assessment purposes.

Formative assessments typically include an assignment or test. Summative assessments typically include either a final exam, capstone project, research, reflective essay or a combination of modalities.

For the Diploma in Financial Planning, the assessment strategy includes the following configuration and combination of weighted assessment typologies:

• Assessment Strategy C (ASC): This strategy consists of two (2) formative assessments. Each formative assessment will count fifty percent (50 %) - twenty-five percent (25 %) each - towards the overall mark. A summative assessment (SA1) will count fifty percent (50 %) towards the overall mark.
• Assessment Strategy 1 (AS1): The assessment strategy consists of three (3) formative assessments and one (1) summative assessment. The formative assessment 1 (FA1), formative assessment 2 (FA2), formative assessment 3 (FA3) and summative assessment 1 (SA1), will each count twenty-five percent (25%) towards the overall mark.
• Assessment Strategy 2 (AS2): The assessment strategy consists of one (1) formative and one (1) summative assessment. The formative assessment (FA1) will count fifty percent (50%) towards the overall mark. The summative assessment (SA1), will count fifty percent (50%) towards the overall mark.
• Assessment Strategy 3 (AS3): The assessment strategy consists of two (2) formative and two (2) summative assessments. The formative assessment (FA1) will count forty percent (40%) towards the overall mark. Summative assessment (SA1) will count fifty percent (50%), and summative assessment (SA2) will count ten percent (10%) towards the overall mark.
• Assessment Strategy IS (ASIA): The assessment strategy consists of one (1) summative assessment. An integrated summative assessment 1 (SA1) will count a hundred percent (100 %) towards the overall mark.

The assessment strategy relevant to each individual module is indicated in the module outlines, uploaded in Section H of the accreditation application.