Financial planners are professionals who help individuals and businesses create and manage their financial plans. They provide guidance on investments, retirement planning, insurance, taxes, and other financial matters. However, creating a financial plan is not a one-time event. It is important for financial planners to review their clients’ financial situations on a regular basis to ensure that their plans remain relevant and effective.

The primary reason for regular reviews is to ensure that the financial plan continues to meet the client’s goals and objectives. As life circumstances change, financial goals may also change. For example, a client may get married, have children, change jobs, or experience a financial windfall. Each of these events can impact a client’s financial situation and require a reassessment of their financial plan.

Regular reviews also allow financial planners to adjust their clients’ investment strategies as needed. The financial markets are constantly changing, and investment performance can vary widely from year to year. A review allows the financial planner to ensure that the client’s portfolio remains aligned with their goals and risk tolerance. If needed, the financial planner can make adjustments to the portfolio to help mitigate risk or take advantage of opportunities.

Another important reason for regular reviews is to ensure that the client’s insurance coverage remains adequate. As life circumstances change, insurance needs may also change. For example, a client may need to increase their life insurance coverage after the birth of a child or purchase disability insurance after a job change. Regular reviews allow the financial planner to identify any gaps in coverage and recommend appropriate changes.

Regular reviews also provide an opportunity for financial planners to review tax strategies with their clients. Tax laws and regulations are constantly changing, and it is important to ensure that clients are taking advantage of all available tax-saving strategies. This can include maximizing contributions to retirement accounts, taking advantage of tax-deferred investments, and charitable giving.

In conclusion, regular reviews are an essential component of effective financial planning. Financial planners must stay up to date with changes in their clients’ lives, the financial markets, insurance needs, and tax laws to ensure that their clients’ financial plans remain relevant and effective. By doing so, they can help their clients achieve their financial goals and navigate the many challenges of managing their finances over the long term.

Bank assurance in South Africa has a relatively short history, as it was only introduced in the late 1990s. Before then, banks and insurance companies operated independently and did not offer each other’s products.

In 1998, the South African government passed the Financial Services Act, which allowed banks and insurance companies to enter into joint ventures to sell each other’s products. This opened the door for banks to offer insurance products to their customers, and for insurance companies to offer banking products.

The first bank assurance joint venture in South Africa was between Nedbank and Old Mutual in 1999. Other banks soon followed, with Standard Bank and Liberty Life forming a joint venture in 2000, and Absa Bank and Santam Insurance forming a joint venture in 2001.

The bank assurance model proved to be successful in South Africa, as it allowed banks to expand their product offerings and insurance companies to reach new customers. By 2007, bank assurance had become a significant part of the South African financial services industry, accounting for around 10% of the country’s insurance market.

However, the bank assurance model has also faced some criticism in South Africa, particularly over concerns about conflicts of interest and the potential for banks to push insurance products onto customers who do not need them.

Overall, bank assurance has had a significant impact on the South African financial services industry, and it remains an important part of the country’s banking and insurance sectors.

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.

FAIS stands for Financial Advisory and Intermediary Services Act, which is a piece of legislation that regulates financial services providers in South Africa. The act was introduced in 2002 to ensure that financial advisors and intermediaries provide professional financial advice and services to their clients and to protect consumers from unscrupulous financial practitioners.

The FAIS Act requires all financial services providers to be registered with the Financial Services Conduct Authority (FSCA) and to meet certain minimum educational and ethical standards. The act also requires financial services providers to disclose their fees and commissions to clients, and to provide clients with appropriate advice that takes into account their financial situation, needs, and objectives.

The FAIS Act also sets out the duties and responsibilities of financial advisors and intermediaries, including the duty to act in the best interests of their clients, to disclose any conflicts of interest, and to maintain the confidentiality of their clients’ information.

In terms of financial planning, the FAIS Act requires financial advisors to have a good understanding of their clients’ financial circumstances, goals, and risk tolerance, and to provide advice that is appropriate for their clients’ needs. Financial planners who are registered with the Financial Planning Institute (FPI) are required to comply with the FPI’s Code of Ethics and Professional Responsibility, which is based on the principles of integrity, objectivity, competence, confidentiality, and professionalism.

Overall, the FAIS Act is an important piece of legislation that protects consumers from unethical financial practitioners and ensures that financial services providers provide professional and appropriate advice to their clients.

Compliance is a big thing in the financial services industry because it is a heavily regulated industry that deals with people’s money and financial wellbeing. Financial services providers have a legal and ethical responsibility to act in the best interests of their clients, and compliance with regulations and industry standards is essential to ensuring that they meet this responsibility.

There are a number of reasons why compliance is so important in the financial services industry:

1. Protecting consumers: Compliance regulations are designed to protect consumers from unethical or illegal practices. Regulations ensure that financial services providers act in the best interests of their clients, provide appropriate advice and products, and disclose all relevant information.
2. Avoiding legal and reputational risks: Non-compliance with regulations can lead to legal and reputational risks for financial services providers. Failure to comply with regulations can result in fines, legal action, and damage to the provider’s reputation.
3. Maintaining industry standards: Compliance with regulations and industry standards helps to maintain the integrity and credibility of the financial services industry. Compliance ensures that all providers are held to the same standards of professionalism and ethical behavior, which promotes trust and confidence in the industry.
4. Improving operational efficiency: Compliance regulations often require financial services providers to implement internal controls and procedures that improve operational efficiency and reduce the risk of errors and fraud.

Overall, compliance is a critical component of the financial services industry, as it ensures that providers act ethically and in the best interests of their clients, while also protecting the reputation and integrity of the industry as a whole.