Today, a joining member who has been a financial planning intermediary for many years questioned the value of taking the game plan accreditation programme. If you’re in the same boat, this article aims to shed light on why this accreditation is not just beneficial but essential for your practice.
1. The Narrow Scope of FCA-Regulated Financial Planning
Financial planning that focuses solely on intermediating FCA-regulated financial investments is limited in scope. According to the Office for National Statistics (ONS), FCA-regulated financial assets make up less than 5% of the average Brit’s wealth. The remaining assets are distributed among property (40%), occupational pensions (40%), and retail savings (11%). Business assets were excluded from the survey due to their unquantifiable nature.
Moreover, selling or purchasing an FCA-regulated financial asset is rarely the solution to a holistic financial planning problem. More often, the solution involves generating additional income, reducing expenditure, or adjusting goals.
2. The Limitations of FCA-Regulated Financial Planning
Traditional FCA-regulated financial planning struggles to serve 92% of the population, including DIY investors, occupational pension scheme members, property owners, and individuals with less than £100,000 in investable assets.
3. The Need for Asset Creation
For those with lower levels of investable assets, the focus should be on asset creation. FCA-registered financial planners don’t create assets; they manage what clients already have.
4. The United Nations and Asset Creation
According to the United Nations and studies from the London Business School, tangible assets are created by identifying productive intangible assets, leveraging entrepreneurial opportunities, and creating sustainable livelihoods.
5. The Public Perception of “Free” Financial Planning
The public often perceives FCA-regulated financial planning as free and, therefore, undervalues it. This type of planning usually involves a needs and shortfall analysis across product spectrums, which is a small element of the more comprehensive cash flow planning work in our game plan method.
6. The Components of the Game Plan
The game plan is a holistic approach that includes several components:
- Life Planning: We start by planning the client’s life before we plan their money.
- Values-Driven Planning: We identify what’s important to the client.
- Intangible Asset Audit: We assess productive, vitality, and transformational assets.
- Purpose Definition: We leverage what the client is good at to define their purpose.
- Optimising Contribution: We combine what the client loves with what society needs and will pay for.
- Future Planning: We define the client’s favourite future and include it as a liability in lifetime cash flow forecasts.
- Action and Execution Plans: We create plans to overcome obstacles and coach execution.
7. The Aim of Holistic Financial Planning
Our aim is to empower, democratise, and decentralise planning. We want the consumer to have complete control over their assets, thereby improving market integrity and eliminating conflicts of interest. In today’s tech-savvy world, this approach resonates with younger, self-directed generations of investors.
Conclusion
If you’re considering offering financial planning without intermediation, be aware that the public often expects this service for free and does not value it. In contrast, a holistic financial plan, such as the game plan, is life-changing and valued. It’s an approach that people are willing to pay for, and that’s what sets us apart.
By embracing game plan accreditation, you’re not just expanding your skill set; you’re transforming the way you empower your clients to live a financially secure and fulfilling life.
Academy of Life Planning 