One key feature of the SCMP/IFPHK Financial Planner Awards over the past five years has been to maintain three distinct categories for entrants working for banks, insurance companies or independent financial advisories (IFAs). Besides recognising the full scope of the industry, this has made it possible for practitioners to match themselves against the best in their sector, and to compare experiences with contestants from different branches of the profession.
Certain points consistently emerge. Client expectations continue to rise. Then, there is the importance of having a sufficient range of products to offer each customer solutions that meet their individual needs. And, finally, there is the advantage that comes from using the holistic six-step approach recommended by the Institute of Financial Planners of Hong Kong (IFPHK). This provides a clear framework for discussion and a firm basis for choices and decisions.
It is no coincidence that, over the past few years, successive award winners have relied on the six-step process when writing initial entries and when presenting their plans to the judges. And, seeing how these principles give advisers a comprehensive and transparent model, which also obliges clients to closely consider their investment priorities, companies have come to view them as an industry standard.
'In the third quarter, we will launch software that specifically enables advisers to conduct the six steps of financial planning and follow best practices with their clients,' said Kelvin Yip Hok-yin, general manager of platform services for iFAST Financial (HK), the lead sponsor of this year's awards.
Mr Yip explained that the new module in the company's 'adviser matrix' software would make it easier for signed-up users to guide people through each stage of the process. By completing details and the various prompts, they will be able to collect information needed for an analysis of a client's financial needs and check their risk tolerance, consider investment options and implement an agreed plan.
'All the elements will fall into place,' Mr Yip said. 'The strength is that advisers will still talk to clients and explain each step of the process, but the software will help them to calculate examples, compare different options and systematically rebalance the portfolio.' He believes this combination of sound planning principles and hi-tech support is the way forward. It offers a chance to demonstrate the level of professional expertise the public now rightly expects and will empower advisers to do more business.
In essence, Mr Yip said iFAST's proposal was: 'You do the professional advisory service; we do and support the rest.' In terms of software support, that means offering portfolio simulation, review of client holdings, online transactions, and the latest economic data and research. Regarding investment products, the platform is being expanded to give access to 700-plus different funds - global, Asian, emerging market, thematic and alternative investments - for advisers to make available to end-users.