A Brief History of Financial Planning

Financial planning in South Africa has a relatively short history compared to other developed countries such as the United States and the United Kingdom. The financial planning industry in South Africa can be traced back to the late 1990s when the Financial Services Board (FSB) was established to regulate financial services providers and ensure that consumers were protected.

In 2002, the Financial Advisory and Intermediary Services (FAIS) Act was introduced to regulate financial advisors and intermediaries in the country. The act required all financial advisors to be registered with the FSB and meet certain minimum educational and ethical standards.

Since then, the financial planning industry in South Africa has grown significantly, with a greater emphasis being placed on providing holistic financial planning services that take into account a client’s entire financial situation, rather than just selling financial products.

The Financial Planning Institute (FPI) was established in 1981 as a professional association for financial planners. The FPI plays a crucial role in setting standards for the financial planning profession in South Africa and ensuring that its members adhere to a strict code of ethics.

In recent years, the South African government has placed a greater emphasis on financial literacy and consumer education, with initiatives such as the National Strategy for Financial Literacy and the Financial Sector Code of Conduct. These initiatives aim to improve the financial wellbeing of South Africans by increasing their knowledge and understanding of financial products and services.

Overall, the history of financial planning in South Africa is one of growth and development, with a focus on providing quality financial advice to consumers and improving their financial literacy.