Postgraduate Diploma in Financial Planning

Purpose

The need to professionalise financial planning has resulted in a need for educational programmes and qualifications that enable people to operate in the financial services sector in a way that ensures higher standards of practice, more effective and meaningful knowledge levels and an appropriate level of professionalism.

The University of the Free State (UFS) obtained approval for just such a programme program in 2000. Presently, the same programme is also offered by the University of Stellenbosch and Nelson Mandela Metropolitan University. Milpark Business School operates in the niche financial services sector and provides several qualifications that address the needs of this sector and thus also the broader societal and economic needs of the country.

The rationale for offering this qualification is therefore still to ensure the production of financial planners of excellence with the knowledge, skills and professionalism to competently transact in the spirit of the legislation. The Financial Advisory and Intermediary Services Act further requires that persons operating in the financial services sector obtain a full qualification within five years of date of first licensing. This qualification is thus available to those wishing to operate in the sector in compliance with the Act. The qualification is also the only recognized qualification in South Africa for the international Certified Financial Planner� status.

Rationale

Given the current emphasis in South African on professionalising the financial planning and associated professions, the qualification addresses a real need for developing high level learners who are professionally competent. Competence in the provision of financial planning services to a wide range of clients in society and business is crucial to the programme. The pressure to professionalise the financial planning advisor exists at both a national and an international level. There is, accordingly, high value placed on the provision of sound financial planning expertise. Qualified and proficient financial planners are in demand across a wide range of sectors. The qualification is also designed potentially to provide access to the coveted CFP� status. Certified Financial Planners (CFP�) currently operate in over 18 countries around the world.

• Knowledge of the legislative framework that governs the South African financial services sector and its operations.
• An understanding of ethics and liability in the sector.
• Knowledge of the principles of taxation.
• The ability to list, explain and discern between the differences, advantages and disadvantages of different forms of business.

Foreign applicants whose first language is not English may be required to provide proof of proficiency in English to obtain admission to the qualification.

Recognition of Prior Learning

Recognition of Prior Learning access: mature age applicants and applicants with non-South African school-leaving qualifications or previous tertiary education experience, may be considered. However, recognition of prior learning assessment will be considered only on condition that it is assessed as equivalent to a formal 360 credit Bachelor's qualification.

The programme is on NQF Level 8 and comprises 160 Credits (1 600 notional hours), as follows

1. Students will be able to demonstrate the ability to apply the financial planning skills, expertise and knowledge to the financial planning process for the benefit of their clients and society.
2. Students will be able and prepared to establish a planning relationship with clients by explaining concepts, services and client/planner responsibilities. The student will conduct him/herself within the parameters of appropriate professional conduct.
3. Students will be able to assess a client profile, obtain documented personal information and determine the current financial status of a client.
4. Students will be capable of determining the financial goals (capital risk and investment needs) of a client.
5. Students will be able to present a plan to a client for approval and agreement.
6. Students will be capable of implementing, managing and monitoring a plan as devised within the ethical constraints of the profession, testing its effectiveness and recommending change as and when necessary.

Critical Cross Field Outcomes

Qualifying learners will be required to demonstrate competence in the following Critical Cross Field Outcomes

1. Identify, systematically examine, critically evaluates and solves problems in which responses demonstrate that responsible decisions have been made, using critical and creative thinking.

• Solve problems by methodically exploring the issues and reflecting on given data to establish a variety of financial planning scenarios that consider the current and alternative circumstances in which problems should be solved.
• Interpret the client and other relevant economic data within strict regulations and apply appropriate problem-solving skills (using mathematical, communication and industry specific skills) to provide appropriate solutions.

1. Organize and manage oneself and one's activities responsibly and effectively.

• Financial Planning activities require clear planning and logical organisation to achieve the learning outcomes within specified timeframes.
• A high level of attention to detail is required in carrying out tasks methodically and in a well ordered manner.
• The deadlines set are met and solutions are reached through the effective use of available and allocated resources.

1. Collect, analyse, organizes and critically evaluates information.

• Data and information is accurately evaluated for purpose, clarification and understanding and this is reflected in the responses submitted.
• Data and information are analysed in order to effectively identify key facts and/or elements.
• Critical and reflective thinking is used to interpret and organize information and data appropriately.

1. Demonstrate an understanding of the world as a set of related systems by recognizing that problem-solving contexts do not exist in isolation.

• Behaviour and actions are sensitive to the various cultures, working environments and sectors.
• Actions are conducted with honesty and integrity through the adherence of a code of conduct and within the framework of the legislation and ethical provisions relating to financial planning.

1. Self-manage skills development from the range of experiences and learning opportunities available.

• Opportunities are maximized to gain learning and understanding from others including tutors, workshops and fellow students.
• Tasks, assignments, activities and the learning experience are maximized for personal benefit (completion of this qualification).

1. Transfer skills and continuous learning to organizational setting.

• Successful application of knowledge, understanding and inference of information into the workplace/practical environment, activities and processes.

Associated Assessment Criteria for Exit Level Outcome 1

a. Legislation that impacts on financial planning practice in South Africa is analysed to determine the impact and scope of its application to personal financial planning.

b. The requirements of the various Codes of Conduct of FAIS are integrated into the practice of financial planning at both the financial planning and business management levels.

c. Own operations are managed within the parameters set by compliance and legislation.

d. An understanding of ethical behaviour is demonstrated in all dealings with clients and regulators in order to ensure fair client interaction, responsible business practice and a contribution to an ethical business environment in South Africa.

Associated Assessment Criteria for Exit Level Outcome 2

a. Client expectations of the financial planning process are established and managed in a clear and professional manner.

b. The legislative requirements set for the contact stage are met.

c. A mandate is negotiated and agreed between the planner and the client in a manner that establishes clear roles and responsibilities.

Associated Assessment Criteria for Exit Level Outcome 3

a. All information relevant to the current financial status of a client is obtained, recorded and verified in a structured manner.

b. The client's knowledge and experience in financial matters is determined in order to inform further interaction/s with the client.

c. The client's life stage and priorities are determined in order to provide context to the financial planning process.

Associated Assessment Criteria for Exit Level Outcome 4

a. Client objectives and needs are determined and prioritized in order to inform the financial needs analysis.

Associated Assessment Criteria for Exit Level Outcome 5

a. Specialist technical knowledge is applied to advise a client on risk, retirement, estate, health and investment scenarios.

b. Integrated solutions for complex financial planning problems are proposed in a manner that is both practical and compliant.

c. Financial solutions are related to the client in a manner that is understandable and clear against the background of the requirements of the FAIS legislation.

Associated Assessment Criteria for Exit Level Outcome 6

a. Full and compliant disclosure is made and the client is assisted in understanding the implications of a selected recommendation.

b. A plan is devised for the ongoing management and monitoring of the client's financial affairs in a way that clearly sets out the roles and responsibilities of the parties.

c. Changed circumstances are taken into account in the regular review performed by the financial planner in order to make adjustments where necessary.

Integrated Assessment

The quality of the assessment is vital in order to provide credible certification and recognition of achievement. The institution makes every effort to ensure credibility in assessment through the application of clear and rigorous procedures and practices. These procedures and practices are controlled by the principles of fairness, authenticity, validity, reliability and practicability. By implementing these principles, all parties concerned (including students, employers and learning institutions) may be assured of the credibility of the assessment process. It is in this way that accurate information about the student's performance against the assessment criteria may be provided.

Integrated assessment is used extensively across the qualification, particularly in the form of case studies. Self- and formative assessment takes place through case studies, assignments, including the writing of proposals and financial plans. Summative assessments are integrated into the learning process in that they take place at the end of each of the constituent modules of the programme.