FPI hits 5 000 CFP® professionals, CEO calls for broader client base

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The Financial Planning Institute of Southern Africa (FPI) heralds its membership surpassing 5 000 CFP® professionals, highlighting the CFP® certification’s growing status as the gold standard for financial planning in South Africa.

Founded in 1981 as the Institute of Life and Pensions Advisers, the FPI has long advocated for professionalism in the industry. However, it was the introduction of the Certified Financial Planner® (CFP®) certification in 1998 that established a globally recognised benchmark. Before this, South Africa’s financial planning industry was largely unregulated, and no standardised qualifications existed for financial planners and advisers.

The CFP® designation introduced ethical, educational, and experience-based standards for financial planners. This shift helped to transition the industry from a sales-driven model to one focused on client-centric, advice-driven practices.

As the sole licensing authority for the CFP® mark in South Africa, the FPI operates under an agreement with the Financial Planning Standards Board (FPSB), the global organisation that owns and oversees the CFP® certification programme.

By 31 December 2024, the FPI reached a total of 5 001 CFP® professionals.

Lelané Bezuidenhout (pictured), CFP® and chief executive of the FPI, describes this achievement as a defining moment for both the FPI and the broader financial planning profession in South Africa.

“Surpassing 5 000 CFP® professionals is a testament to the increasing demand for qualified financial planners who uphold the highest standards,” she says.

Bezuidenhout points out that the growth demonstrates both steady progress and a high retention rate, with 96 to 97% of CFP® professionals maintaining their certification each year. This retention rate compares favourably with other FPSB territories, highlighting the strength of South Africa’s financial planning profession.

She adds: “This milestone is the result of long-term strategic efforts, not overnight success. The FPI’s 2023-2025 growth and awareness strategy, which includes digital marketing, stronger industry partnerships, and the adoption of new systems to enhance onboarding and automation, has been instrumental in reaching this point.”

Growth, retention, and industry trends

From a broader industry perspective, Bezuidenhout notes that the demand for CFP® professionals continues to rise, particularly as the profession evolves towards a more human-centric approach.

“Financial planning is no longer just about managing money – it’s about understanding the psychology behind financial decisions. The 2023 global update of the CFP curriculum reflects this, with education and CPD content increasingly focused on behavioural finance and client engagement,” she explains.

Bezuidenhout adds that automation and AI are enabling financial planners to dedicate more time to building deeper client relationships, reinforcing the role of CFP® professionals as trusted advisers in a changing financial landscape.

“This growth signals not just more professionals, but also a maturing and future-focused profession in South Africa,” she says.

She also points out that a growing number of career changers are pursuing the certification route to become CFP® professionals, with more than 1 000 new candidates currently working towards certification.

“FPI-recognised education providers, corporate partners, and FPI-driven initiatives all contribute to developing and strengthening this pipeline, ensuring a steady flow of new professionals into the industry.”

The CFP® pipeline consists of three key groups:

  • Students studying towards a recognised financial planning qualification.
  • Candidates who have obtained the qualification but are still gaining the required financial planning experience.
  • Representatives and consultants who have met the qualification and experience requirements but still need to sit for the CFP® certification assessment (board exam).

Bezuidenhout explains that the main factors driving this pipeline are supply and demand.

“As financial institutions increasingly recognise the value of employing CFP® professionals, demand continues to rise. Having CFP® professionals within a distribution network elevates the overall competency of financial advisers, leading to better client outcomes and stronger professional standards,” she says.

Expanding the scope of financial planning

Bezuidenhout acknowledges that despite this growth, South Africa still has too few CFP® professionals relative to its GDP and population size.

In an interview with Moonstone, Gielie de Swardt, the head of Retail Partnerships at Alexforbes, highlighted that although competition is intensifying, most professionals are still targeting the same wealthy clients at the top end of the market. He believes there is an urgent need for solutions to address the unadvised portion of the industry.

Bezuidenhout agrees, noting that CFP® professionals need to consider expanding their client base.

“If everyone is fishing in the same pond, it makes sense to look for new waters. However, expanding into different markets may require adjusting strategies – just as fishing in a new pond may require different rods and techniques to catch different fish,” she explains.

To ensure long-term sustainability, she advises that financial planners focus on the middle-income and mass-affluent segments, which have significant financial planning needs but often lack access to professional advice.

“By adopting scalable models – such as digital advisory tools, subscription-based services, and employer-sponsored financial education programmes – CFP® professionals can extend their reach while maintaining profitability,” she says.

Bezuidenhout adds that diversifying the client base will not only sustain growth in the profession but also enhance financial inclusion in South Africa.

“Financial planners must evolve to meet the needs of a broader population, because the future of professional financial advice isn’t just about competing in the same pond but finding new ones.”

Navigating regulatory changes

The financial services industry is preparing for the implementation of the Conduct of Financial Institutions (COFI) Bill, which is expected to be tabled in Parliament between February and April. Although COFI aims to modernise the regulatory framework, financial services providers remain concerned about potential uncertainty.

“Financial institutions (FSPs) are primarily concerned about the regulatory uncertainty that comes with COFI, similar to the uncertainty experienced when FAIS was introduced between 2000 and 2004,” says Bezuidenhout.

She adds that additional compliance burdens and increased costs are also key concerns.

“The shift to principles-based regulation may create challenges in understanding the exact requirements and what the transitioning phase will entail,” she notes.

Bezuidenhout explains that the FPI is engaging with regulators to ensure that financial planners’ concerns are addressed. The FPI advocates for a balanced regulatory framework and provides guidance, workshops, and consultative sessions to keep members informed and prepared for the changes.

“COFI’s implementation does not mean that everything was perfect before and will suddenly collapse after its introduction. The transition actually began with Retail Distribution Review (RDR) back in November 2014,” she says.

“Over the past decade, regulations have gradually been updated to incorporate RDR proposals into FAIS regulations, meaning the shift to COFI has been happening for some time. However, we are still waiting to see what the updated Omni-CBR (Omni Conduct of Business Return) will look like.”

In preparation for the roll-out of the new Bill, FPI members have access to complimentary webinars, in-person events, and learning materials to help with the transition from FAIS to COFI.

“From an advocacy perspective, FPI sits on various FSCA committees and actively contributes to discussions around COFI. I find that the FSCA and National Treasury are open to discussions and far more collaborative than a few years ago,” Bezuidenhout says.

Expanding beyond South Africa

At the FPI awards ceremony and gala dinner held in August last year, Bezuidenhout announced that the FPI is expanding its reach to neighbouring countries, including Namibia and Mauritius. This move is designed to support members who were certified in South Africa but have since relocated to these regions. Given the similarities in education systems (NQF levels), extending FPI’s standards to neighbouring countries is a logical next step.

“However, it is still a long journey, as we have a lot of groundwork to do before we can expand into these territories. At the moment, we are learning from other professional bodies that have already moved into our neighbouring territories,” Bezuidenhout explains.

She shares that they are currently in the planning phase and will incorporate the full project plan into their next three-year strategy.

“For now, we are holding meetings with members and compliance specialists who live in those territories. The plan also includes engaging with relevant tertiary education partners in these regions. As mentioned, this will not happen overnight and will take time,” she says.

Strengthening the CFP® brand locally and globally

Financial planning is a young but rapidly growing profession globally. As one of the founding members of the FPSB 20 years ago, the FPI continues to collaborate with local and global regulators and bodies, advocating for the standards that underpin the CFP® designation.

“Our stance over the past decade in regulatory discussions has consistently been that a person cannot call themselves a financial planner unless they meet the competency and ethical standards that underpin CFP® certification. A financial adviser who is a CFP® professional should be recognised as competent in certain fit and proper requirements, such as Class of Business training and CPD,” Bezuidenhout explains.

She adds that the FPI will continue its strategy to raise awareness of the profession and its members through consumer education initiatives and an ongoing marketing strategy.

“Additionally, we are collaborating with SETAs and universities to promote financial planning as a career,” Bezuidenhout says.