Skills and attributes required of a successful Financial Planner - PowerPoint PPT Presentation

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Skills and attributes required of a successful Financial Planner

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Title: Skills and attributes required of a successful Financial Planner


1
Skills and attributes required of a successful
Financial Planner
  • Beverley Jackling,
  • Associate Professor
  • School of Accounting, Economics Finance,
  • Deakin University
  • and
  • Colin Sullivan ,
  • Head of Operational Risk Compliance,
  • Markets,
  • ANZ

2
Objectives of the study
  • Examine the competency standards considered to be
    most important for financial planners
  • Report on gaps in standards displayed and
    standards expected

3
Significance of the study
  • Adds to sparsely researched field of financial
    planning.
  • Tests the applicability of Birketts theoretical
    framework for competencies of financial planners.
  • Provides feedback to the industry about the
    strengths and weaknesses of educational programs.

4
Milestones in the Financial Planning Environment
in Australia
1991 Compulsory
Superannuation
1992 3-4 SGC
(Dependent on company payroll)
1996 Howard Government elected
Wallis Inquiry established
1998 CLERP 6 (outcome of Wallis
Inquiry) ASIC Established
2002 FSRA Phase 1 (implementation
in 3 phases to 2004)
Industry reform driven by regulator desire to
protect consumers/retail customers
5
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6
The changing risk appetite of investors in
Managed FundsSeptember 1990 - June 2006
7
Background to educational requirements for
Financial Planning
8
Birketts taxonomy of attributes of financial
planners
9
Educating financial planners issues identified
in literature
  • Difficulty in teaching generic skills in formal
    education (Goetz et al. 2005)
  • Lack of evidence that generic skills taught and
    assessed in educational process (Christainsen
    De Vaney, 1998)
  • Communication skills poor for U.S. finance
    graduates (Graham Krueger, 1996)

10
Education including generic skills
  • Can educators teach generic skills?
  • Clancey and Ballard (1995) at best guarantee the
    opportunity to learn and develop generic skills
  • Cranmer (2006) academic efforts to teach generic
    skills not succeeding.
  • Alternative divert resources to
    employment-based training

11
Evaluation of competencies of financial planners
shadow shopping ASIC/ACA
  • Technical skills
  • ASIC (2003) deficiencies in technical (cognitive)
    skills linked to commission driven product
    selling.
  • Generic skills lack of communication skills
    e.g. explanation of investment risks,
    comprehension of plan, failure to identify key
    client requirements.

12
Research Questions
  • Based on Birketts taxonomy, which skills do
    financial planners perceive as important?
  • How do financial planners rate the standard of
    technical and generic skill acquisition of newly
    appointed financial planners?

13
Research Approach
  • The Questionnaire
  • Assessment of importance of generic and cognitive
    skills
  • Feedback on gaps in skills of new graduates
  • Sample
  • FP website for addresses of financial planners
    around Australia.
  • 162 useable responses

14
Table 1Responses n 162
15
RQ1 Importance of skills
16
RQ2 Gaps in skill importance and skill displayed
n82 All paired t-tests on the difference
between important and exhibited means were
significant except numerical skills
17
Conclusions
  • RQ1 Listening skills ranked as most important
    generic skill
  • Most important cognitive skill ability to
    conduct financial analysis
  • RQ2 Greatest gaps in skills listening and
    questioning skills.

18
Implications and further directions
  • Need to re examine existing programs to more
    specifically address gaps in skill development
  • experiential programs in undergraduate studies
  • Cranmer (2006) structured work experience and
    employer involvement in degree course design and
    delivery

19
Implications and further directions
  • Incorporate listening skills into programs
  • The doctor/patient planner/client similarity.
  • The task how to effectively incorporate skill
    development into existing educational programs.

20
Conclusions
  • Despite enormous progress of the financial
    planning) profession in the last 40 years much
    needs to be done to improve the quality of advice
    through research and education Warschauer (2002).

21
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