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Relationship Marketing For Financial Planners > Topic 2 > Flashcards

Topic 2 Flashcards

1
Q

Levels of analysis

A
  1. Macro/political level
  2. Organizational level
  3. Micro/individual level
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2
Q

Macro/political level forces

A
  1. The regulatory environment, made up of mandatory laws created by the government, and the enforcement of these laws by legislative structures through judgment (rooted in ethics and values)
  2. Broader societal developments
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3
Q

Different types of actions

A
  1. Actions that are good and legal but not a legal obligation
  2. Actions that are wrong and illegal
  3. Actions that are legal but bad
  4. Actions that are good but illegal
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4
Q

Elements that influence RM strategy

A
  1. The regulatory environment
  2. The broader societal developments
  3. The financial planning practice
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5
Q

The regulatory environment elements

A
  1. Ethics
  2. Legislation
  3. Financial Sector Conduct Authority
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6
Q

Ethics

A

The moral obligation that a business’ activities, products, and services will enhance the development of its social and natural environment

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7
Q

African value system

A
  1. Collective over the individual good
  2. Principles of mutual interdependence and coexistence
  3. Spirit of humanity
  4. Hierarchical political ideology
  5. Preference for consensus over dissension
  6. Mentality of inherent trust and belief in the fairness of human beings
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8
Q

Legislation

A

FAIS regulates the relationship between financial institutions that provide financial services and their clients

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9
Q

Result of S15 and S16 of the FAIS Act

A

The FAIS Registrar and an advisory committee created the General Code of Conduct for Authorised Financial Services Providers and Representatives

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10
Q

Objective of the General Code of Conduct

A

To ensure that clients receiving financial services can make informed decisions and that their financial needs are appropriately and suitably satisfied throughout the lifetime of the professional relationship

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11
Q

How are the objectives of this Code of Conduct met by practices

A
  1. Acting honestly and fairly, and with due skill, care and diligence, in the interests of clients and the integrity of the industry
  2. Having and employing resources, procedures and appropriate technological systems for the proper performance
  3. Seeking from clients appropriate and available information regarding their financial situation
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12
Q

Section 6 of this Code of Conduct

A

“When a provider makes contact with a client, he must act honourably, professionally and with due regard to the convenience of the client.”

During any contact, certain information must be provided to the client

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13
Q

Financial Sector Conduct Authority

A

Empowered to implement various enforcement measures to ensure compliance with FAIS

If a client feels he has been prejudiced while interacting professionally with a financial planner, the client may seek action against the financial planner by approaching the FAIS Ombudsman

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14
Q

FSCA additional roles

A
  1. The authority to implement various initiatives to further achieve the objectives of FAIS
  2. Promote programmes by financial institutions and bodies that represent the financial services industry, to inform and educate users and potential users of financial products and services
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15
Q

Examples of FSCA initiatives

A

Treating Customers Fairly
Retail Distribution Review

Both related to entrenching the application of FAIS more deeply within financial planning practices

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16
Q

Primary cultural value shift

A
  1. Liquid life/déclassé consumption
  2. Ethics and fair play
  3. Durable living
  4. Return to the fold
17
Q

Liquid life/déclassé consumption

A

The movement of consumers defining their success not by having things but by their ability to manage their financial affairs prudently

The perception that being frivolous makes you look a little anti-fashion

18
Q

Liquid life/déclassé consumption examples

A

House swapping instead of staying in 5-star hotels during holidays

Downsizing of DSTV packages

19
Q

Liquid life/déclassé consumption business response

A

Use existing infrastructure to hold teleconferences for meetings and internet-based training for employees

20
Q

Ethics and fair play

A

Providing not only value for money but also providing value in the community

21
Q

Ethics and fair play examples

A

Swapping services, where you find businessmen swapping their skill and expertise instead of cash

22
Q

Ethics and fair play business response

A

Active seeking and identification of how the resources (structural and human capital) within the company can be pulled together to become involved in community initiatives

23
Q

Durable living

A

Consumers are demanding a value experience from every purchase that they make, from point of dale to after-sales support

24
Q

Durable living examples

A

Holding onto cars longer, meaning that they are willing to purchase a proven, reliable vehicle that can be maintained at a reasonable cost

25
Q

Durable living business response

A

Providing bursaries for increasing the number of actuaries and researchers who can be employed to create sustainable products that will be relevant and adaptable over the long term

26
Q

Return to the fold

A

Consumers are no longer placing trust in the advertised promise of ‘you can trust us’ from the company

27
Q

Return to the fold example

A

Using social media networks
Initiating boycotts of companies
Openly discussing poor service received

28
Q

Return to the fold business response

A

Become part of these social networks

29
Q

Implementing RM strategy

A

Commitment and support from the senior people in the business are critical to its success

30
Q

Successful financial planning practice

A

Brought about marrying the pursuit of profit with positive customer experiences gained through effective RM strategy

Relationship Marketing For Financial Planners (6 decks)

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