Saturday, April 12, 2008

CFP International Forum - 8 April 2008

It was interesting to get a perspective of where New Zealand is positioned on the international stage of financial planners at the recent forum in Christchurch.

The forum had representatives from Australia, South Africa, United Kingdom, United States in addition to attendees from other countries.

The number of Certified Financial Planners (CFP) has grown from 42 in 1973 to over 111,000 in 2007. New Zealand has 397 CFPs.

David Strege - United States
I enjoyed listening to David Strege who spoke about becoming a lifetime trusted advisor.

He shared the formula for calculating trust:

Trust = (Intimacy + Credibility + Reliability) / Self-orientation

Clients rate each of these values on a scale from 1 to 10 (1 is the lowest, 10 is the highest). The maximum score is 30.

For example if Intimacy is 7, Credibility is 9, Reliability is 8, and Self-orientation is 2, then Trust is rated (7+9+8)/2 = 12.

Further information is available at

David also made the comment that money itself is worthless, unless it is spent on something that is of value.

John Holland - Securities Commission
It was interesting and comforting to hear the commission talk about the approach they are taking to work with advisors to protect investors. He referred to an
illegal investment in 2001 as the reason for the disclosure regime.

Group panel discussion - Interesting points
Australia's main issues are:
- Regulation & licensing.
- A product-based (rather than advice based) system.
- Clients paying fees vs companies paying commission.
- Business costs.
- Recruitment, remuneration, retention and succession.

South Africa's main issues are:
- 48 million people, but only 5 million tax payers.
- Upfront vs renewal commission.

United Kingdom's main issues are:
- Strong sales focus from product providers vs advice focus.

United States main issues are:
- Regulation.
- New clients.
- Time management.
- Lack of effective regulation despite state licensing.
- Costs (5% spent on rent, 7% spent on regulation).

Hon Lianne Dalziel - Minister of Commerce
The minister's full speech is available on her
website. Note her final statement where she will keep repeating the need for investors to be wary of dealing with anyone providing financial advice who is not a member of a professional body.

The timeframe for regulation was 2010. Members of professional bodies should feel confident about the changes. The goal is to grow investor's confidence.

Further information

You can find out more about the Financial Planning Standards Board at

Copy of the slides are available at under the members section.

Recent article entitled Australian advisers do it better

1 comment:

Anonymous said...

I'm newbie here, I hope to get friends at this forum