Financial planner professional recognition within sight, says Steve Helmich
The financial planning industry may well be on the verge of a "golden age" in which planners finally get the recognition they deserve, according to AMP director of financial planning advice and services Steve Helmich.
Despite the naysayers predicting the end of the financial planning industry (something which has been predicted on a regular basis since the 1970s, he noted), certified financial planner (CFP) professionals are on course to be recognised with their peers in the legal and accounting professions, Helmich said.
"Around the world at the moment, there are 140,000 CFP professionals across 24 countries in the world. That number will double in the next five years with the growth that's going on," Helmich said.
But for financial planning to be properly recognised, there must be put in place an enforceable code of practice that in turn leads to compulsory membership of a professional association, he added.
"It is a must. I couldn't imagine any other profession not wanting to be a member of the professional association. This is a challenge for the financial planning world," Helmich said.
But the most important challenge for the industry is to alter the public's perception of financial planners, and clearly explain what it is they do for their clients.
"Financial planning is not about getting the best returns. It's not about making everyone rich. It's not about finding the best investment options. It's about helping people make informed decisions through their finances," Helmich said.
For Helmich, financial planning is about helping clients with four things: forming a strategy about what they want to achieve in their life; putting a structure in place that suits them; contingency planning; and instilling financial discipline.
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