Postgraduate Diploma in Personal Financial Risk Management

Purpose

The purpose of this Postgraduate Diploma (Personal Financial Risk Management) is to provide learners with the necessary advanced academic and professional competence to become experts in the field of personal financial risk management. Successful learners will be able to provide advice on a multitude of platforms, e.g. evaluating a client's risks, providing solutions for risks identified within the legislative framework of the personal financial risk management sector. The risk management practitioner will be able to provide sound advice and to assurance that clients' investments and estates are protected.

At the end of this qualification learners are expected to

• Demonstrate an advanced understanding of the theoretical framework, key concepts and core legal rules and principles of all areas of the Personal Risk Management industry.
• Explain and apply relevant legislation and the principle of ethics in the Personal Risk Management industry.
• Critically analyse a personal financial situation and apply the theoretical knowledge to provide effective solutions.

Rationale

The Financial Planning Institute of Southern Africa states that professions involving financial planning are continuing to be one of the fastest growing sectors worldwide. Financial Planning Law comprises of various sub-fields, including employee benefits, investment planning and estate planning. Although the Postgraduate Diploma in Financial Planning Law equips learners to the legal aspects underpinning financial planning at an advanced level, the Financial Planning Institute of South Africa requires additional sub-specialisation in the field, such as this qualification.

This qualification aims to enable learners to attain advanced knowledge and competence within the areas of personal financial risk management and/or estate planning and/or asset types and investment planning. In addition, the qualification will provide a formal postgraduate qualification for individuals in the personal financial risk management profession.

The utilisation of this qualification type widens access to higher education, and serves as a feeder qualification for vertical and horizontal articulation. The qualification capacitates the profession and or professionals to become personal financial risk managers who will be able to give a specific quality of advice that will improve the standards of financial planning in the country.

Recognition of Prior Learning (RPL)

In exceptional cases where learners do not meet the admission requirements, a special justification for admission, based on the institutional General Rules and RPL policy will apply. Learners are therefore provided an opportunity to demonstrate competence in cognate fields at the NQF Level 7.

Entry Requirements

The minimum entry requirements are

• Bachelor of Commerce or Bachelor of Accounting with specialisation in Mercantile Law.

Or

• Bachelor's Degree or a relevant equivalent qualification at NQF Level 7.

This qualification consists of compulsory and elective modules at NQF Level 8, totalling 120 Credits.

Compulsory module

• Personal Financial Risk Management, 60 Credits.

Choose one from the two electives below

• Estate Planning, 60 Credits.
• Asset types and Investment Planning, 60 Credits.

1. Demonstrate an advanced understanding of the theoretical framework, key concepts and core legal rules and principles of all areas of the Personal Risk Management industry.
2. Critically analyse a personal financial situation and apply the theoretical knowledge to provide effective solutions.
3. Explain and apply relevant legislation and the principle of ethics in the Personal Risk Management industry.

Associated Assessment Criteria for Exit Level Outcome 1

• The theory of risk management, insurance and investment principles is applied and illustrated.
• Knowledge of the South African common law, legislation and self-regulatory requirements to risk management and planning is developed and applied.
• An advanced understanding of nature and mechanics of the different financial market as well as the different instruments through which exposure to these markets can be obtained is demonstrated.

Associated Assessment Criteria for Exit Level Outcome 2

• All personal financial risks a client case faces are identified and adequate solutions are provided.
• Techniques which can be used to improve a client's current estate situation are recommended and described.
• The law and taxation of trusts with respect to estate planning is applied.

Associated Assessment Criteria for Exit Level Outcome 3

• The needs of the client in terms of the accumulation, conservation, and ultimate distribution of assets forming part of the estate are identified.
• Elementary financial mathematics to identify and to provide adequate solutions to personal financial risks is applied.
• Personal financial risks and the methods for the creation and protection of wealth are identified and evaluated.
• An understanding of the fundamentals of all taxes affecting individuals is demonstrated.
• The basic financial calculations with regard to investment instruments are done.

Integrated Assessment

Assessment will comprise of both formative and summative assessment and the same assessment strategy will be applied in each module. For formal formative assessment one assignment will be sub-divided into three parts. The assignment will consist mainly of case studies in which learners will apply the theory to practical examples, analyse and compare scenarios and provide applicable advice. To further support the distance mode of provisioning, continuous informal assessment for formative purposes will be applied.

Summative assessment will take the form of an examination in each module.