CFP® professionals’ perceptions of establishing client relationships in a South African context

Abstract

Orientation: A financial planning advice gap exists in South Africa because of the different cultures and their diverse financial needs and goals. Research purpose: To investigate the appropriateness of step one of the six-step financial planning process from a South African perspective, by considering the perspectives of CFP® professionals. Motivation for the study: It is important to investigate how CFP® professionals can apply step one of the financial planning process more appropriately in a South African context, to establish a professional relationship with their clients. Research approach/design and method: An interpretivist research paradigm and qualitative methodology was adopted for this study, with semi-structured interviews. Main findings: Findings revealed that step one of the financial planning process can be applied more appropriately in the South African context if the focus is on the sources of clients, establishing relationships, building trust and by considering the similarity attraction between financial planners and clients. Practical/managerial implications: The study highlights areas that financial planners should focus on to establish professional relationships more appropriately with clients from different cultural backgrounds. Contribution/value-add: The study adds to the body of knowledge in the field of financial planning and provides practical recommendations to the benefit of various industry role players.

Keywords

• six-step financial planning process
• relationships
• step one
• financial planning
• qualitative