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Make Sure Your Financial Advisor Meets These Requirements

This is the third part in our “everything you need to know about financial advisors” series. We have addressed all the important things about hiring and working with a financial advisor in our previous two articles:

Is it Time to Speak to a Financial Advisor? Here’s How You Know

The Difference Between an Independent Financial Advisor and a Broker

The next factor to consider when choosing your financial advisor is their qualifications and whether or not they meet the necessary requirements.

Not sure what to look for? In this article we discuss the minimum requirements that all financial advisors in South Africa must meet.

personal financial planning

What Qualifications Does a Financial Advisor Need?

According to South African law, financial advisors need to meet the following minimum requirements:

They Must be Licensed

All financial advisors in South Africa must be licensed by the Financial Services Conduct Authority (FSCA) as an authorised financial services provider.

All financial industry activity in South Africa is overseen by the FSCA and all financial services providers (FSP) are governed by the independent institution.

The FSCA has an online database which you can search to make sure your financial advisor is licensed, and you can do this using their FSP number.

They Must Meet FAIS Requirements

The Financial Advisory and Intermediary Services Act has put together a list of requirements that financial advisors must meet in order to be considered “fit and proper”.

These requirements set out strict standards in terms of financial soundness, competence, honesty, integrity, continued professional development, and operational ability.

All financial advisors must meet these requirements.

They Must be Qualified

To become a Certified Financial Planner, a financial advisor must:

  • Obtain a BCom Honours or a postgraduate diploma in Financial Planning at one of the higher education institutions which have been approved
  • Write and successfully complete a certification examination at a postgraduate level. This examination serves to test the individual’s practical knowledge on various fundamental aspects of financial planning as a whole
  • Gain a minimum of three years’ experience in the field of financial planning
  • Commit to the Financial Planning Institute’s Code of Ethics and Professional Responsibility with the understanding that violation of the code can result in disciplinary action
  • Complete 35 hours of continued professional development every year
They Must Have Indemnity Insurance

It is mandatory in South Africa for financial advisors to have indemnity insurance. This protects them and you from unforeseen losses and claims resulting from negligence or poor judgment.

Olemera – Financial Planning Services Johannesburg

Our financial advisors in Johannesburg have all the qualifications and meet all the requirements as listed in this article.

Providing sound financial advice to our clients is our priority and we are committed to offering exceptional financial services to clients across South Africa.

Comments are closed for this post, but if you have spotted an error or have additional info that you think should be in this post, feel free to contact us.

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