As financial planners operate in a competitive business environment, it is important to identify how financial planners can apply relevant industry aspects to positively influence their customer satisfaction and customer retention levels. Although models of customer satisfaction and subsequently customer retention have been well researched for consumer products and services, there has been limited research in regards to financial planning. Previous research in the financial planning industry focussed on specific elements of financial planner-client relationships, for example trust, integrity and ethics. This research study reviews existing literature on customer satisfaction and customer retention, as relevant to the financial planning industry. Thus the primary objective of this study is to investigate the extent to which the four predetermined independent variables; namely, two-way communication, ethical responsibility, clients’ financial knowledge and commission fees can possibly influence the intervening variable customer satisfaction and ultimately the dependent variable customer retention in the financial planning industry. An empirical investigation was undertaken to establish whether the independent variables; namely, two-way communication, ethical responsibility, clients’ financial knowledge and commission fees can possibly influence customer satisfaction and ultimately customer retention in the financial planning industry. A positivistic research paradigm was followed for this study. Quantitative data was gathered by distributing questionnaires to a sample of financial planning clients. The sample size consisted of 250 financial planning clients in the Nelson Mandela Metropolitan area. A response rate of 76.40 percent was achieved. The usable questionnaires were statistically analysed using the computer programmes Microsoft Excel and Statistica Version 10. The validity of the study was confirmed by utilising EFA. Cronbach’s alpha coefficients were calculated to confirm the reliability and the internal consistency of the measurement instrument of this study. Data was analysed in four phases. Descriptive statistics were calculated for this study. The validity of the measuring instrument was tested by performing EFA to consider construct validity. Thereafter the internal reliability of the data was assessed using Cronbach’s alpha coefficients. Pearson’s product moment correlation coefficients and multiple regression calculations were calculated and discussed. Through multiple regression calculations, the factors that emerged were used to analyse the relationships predicted by the five hypotheses. Finally t-tests and analysis of variance (ANOVA) tests were conducted and discussed. The empirical investigation revealed that significant relationships exist between the independent variables two-way communication, ethical responsibility, commission fees and the intervening variable customer satisfaction as well as the dependent variable customer retention. The empirical investigation revealed that if a financial planner communicates financial information accurately and understandably to clients while acting in an ethical manner, clients are likely to be satisfied with the products/services of the financial planner and be retained by the financial planner. This study established and confirmed the significant positive relationship that exists between customer satisfaction and customer retention in the financial planning industry. Recommendations have been provided based on the main empirical findings. All financial planners in South Africa, including all the regulatory bodies, will benefit from the empirical findings as well as the recommendations of this study on how to improve customer satisfaction and customer retention which will ultimately increase service delivery of financial planners in the financial planning industry.

The South African financial planning industry experienced a rapid growth from its generic beginnings in the 1970’s to the vast levels of specialisation taking place in the 21st century. Financial planning, akin to the medical profession, is arguably one of the most critical areas of influence in the personal lifestyle planning of individuals given the increasing longevity brought about by the medical profession. Early transgressions and irregularities, as in the case of most industries, brought about the introduction of the Financial Advisory and Iintermediary Services (FAIS) Act in 2004 to regulate, transform and restructure the industry. Since the introduction of the Act, compliance with the legislation and obtaining the appropriate qualifications have become a major focus for financial planners. This groundbreaking academic research involves an assessment of the educational needs of graduates in the financial planning industry including an evaluation of the relative importance of the subject fields, management competencies and skills required in the field of financial planning with specific reference to the financial planning programmes offered by the HEIs in South Africa. The purpose of this study can be phrased in a threefold manner: Firstly, to assess at programme level the theoretical and practical relevancy of the HEIs financial planning programme content relative to the present and immediate future normative requirements of the financial planning profession; Secondly, to assess whether the academic programmes address the critical skills shortage in financial planning by determining the appropriate qualification delivery in terms of academic and practical learning to develop the appropriate management competencies; and Thirdly, based on the findings of this research, to address any gaps pertaining to the financial planning programme content and management competency and skills levels, thereby contributing to the body of knowledge pertaining to financial planning education in order to be relevant and responsive in servicing the financial services sector. To give effect to the problem statement and to validate the research propositions, a mixed methods design within the pragmatic research paradigm was used. A relatively new and innovative mixed methods approach, namely Real-time Delphi (RTD) procedures of sourcing professional expert opinion enabled the collection of qualitative and quantitative data for data triangulation. The RTD methodology which seeks the pooled intelligence from a group of selected experts is also capable of determining future requirements rather than only the current practice. This is the first academic study of its kind in South Africa utilising the RTD methodology.

This study which is located in Durban, South Africa examines the life insurance Industry in South Africa, the trends, local and international, and strategic issues and the thinking of the industry leaders that will impact upon current distribution business models. The impact of these on the role of the Financial Planner is highlighted, providing evidence of the international success of alternative models for the distribution of professional financial advice. The literature review in this study suggests that, from international experience, the weakest link in the present distribution chain of life insurance is the Financial Planner because their means of remuneration is currently being subjected to extensive reduction by regulators. As the South African industry transforms as a result of price cutting and regulatory pressures on downscaling of existing commission structures, the Financial Planner will bear the brunt of this resizing to the form of substantial reductions in their earnings, resulting either Financial Planners exiting the industry, or seeking an alternative business model than that of commission remuneration from the sale of life insurance products It is against this backdrop that this submission examines three critical questions: How will the transformation of the South African life insurance industry, changing needs and demands of consumer's impact upon the role of the Financial Planner in the financial planning industry? What are the consumer's experiences, expectations and perceptions of Financial Planners? What must Financial Planners and their representative bodies do in order to ensure the continuity and independence of the role of the Financial Planner in the distribution of professional financial planning advice? These critical questions are investigated using a quantitative research instrument, i.e. a structured questionnaire, the results of which are statistically analysed using the SPSS system. The main findings provide substantial evidence that trends and experiences from the UK and USA will have a similar impact on the South African Financial Planner's future in the present life insurance business model. The predictions, teachings and motivations of relevant authors is for Financial Planners to adopt a holistic expanded business model offering Life Planning to consumers which provides the Financial Planner with an alternative to remaining in the present business model. The study further reveals that consumers attach a high value to the intellectual abilities and to the role the Financial Planner plays in providing them with professional financial advice. It further confirms that without the Financial Planner, life insurance companies have no real link to the consumers of life insurance products because the consumer is dependent upon the Financial Planner for professional financial advice. / Thesis (MBA)-University of KwaZulu-Natal, Westville, 2006.

With the increasing demand for financial planners, financial planning organisations need to understand the factors influencing organisational commitment in order to achieve a committed and loyal workforce. The purpose of this study was therefore two-fold. Firstly, the study intended to contribute to the more effective functioning of financial planning organisations through the successful retention of valuable human resources, and secondly, to expand the current body of knowledge on financial planning organisations in South Africa and abroad. Considering the purpose of this study, its primary objective was to investigate the influence of selected organisational-related factors on the Affective, Normative and Continuance commitment of financial planners currently employed in the financial planning industry in South Africa. Based on an extensive review of business management, industrial psychology, as well as human resource management literature and research (focusing on the vast amount of secondary sources available on organisational commitment), a hypothesised model illustrating the relationships between selected organisational-related factors and the three dimensions of organisational commitment was proposed. Twelve independent variables were hypothesised to influence the three dependent variables, namely the Affective, Normative and Continuance commitment of financial planners. The twelve independent variables included: Compensation, Distributive justice, Job autonomy, Job security, Organisational communication, Organisational support, Physical working conditions, Promotional opportunities, Psychological contract fulfilment, Training and development, Transformational leadership and Trust. In addition, nine demographic variables (Gender, Race, Age, Organisational tenure, Qualification, CFP status, Tied agent status, Salary structure and Organisational type) were identified. All of the dependent and independent variables in this study were clearly defined and operationalised using items from previously validated measuring instruments, in addition to several self-generated items based on secondary sources. Questionnaires were made available to potential respondents through the use of convenience snowball sampling. A total of 231 useable questionnaires were returned which were then analysed statistically. As a result of an exploratory factor analysis (EFA), the original operationalisations, hypothesised model, as well as the hypotheses were revised. Additionally, a new, combined factor emerged, namely Job security and promotional opportunities. The proposed model of factors was subsequently empirically tested by means of structural equation modelling (SEM). In order to carry out the statistical analysis, three submodels were created. The hypothesised model was revised and the redefined hypothesised relationships were given in path diagrams for each of the three submodels. The influence of the various demographic variables on Affective, Normative and Continuance commitment were assessed by means of an Analysis of Variance (ANOVA) and t-tests. A number of organisational-related factors were identified as influencing the dependent variables of this study, namely: Compensation, Organisational support, Distributive justice, Job security and promotional opportunities, as well as Training and development. In particular, Compensation and Organisational support were found to influence Affective commitment, while Distributive justice, Job security and promotional opportunities as well as Training and development were found to influence Normative commitment. Additionally, Organisational support and Job security and promotional opportunities were found to influence Continuance commitment. By investigating selected organisational-related factors influencing the three dimensions of organisational commitment, the study was able to provide practical recommendations to organisations in order to increase the Affective, Normative and Continuance commitment of their financial planners.

The Retail Distribution Review (RDR) was introduced by the Financial Services Board (FSB) to change the distribution and remuneration practices in the financial services industry in an attempt to ensure that clients receive fair treatment when purchasing financial products. The FSB aims to ensure that clients are sold products which are suitable for their financial needs and objectives; that clients receive appropriate advice which is not biased and not subject to product supplier influence in particular and that there is full transparency in the sales process. The current distribution of financial products and some financial advisor remuneration models are noted as contributing factors to the poor outcomes of current product selling practices. The impact of RDR on the sustainability of the South African financial services industry and advisor force is expected to be substantial, especially in terms of advisor remuneration, the reduction in qualified experienced advisors and a growing advice gap. This study reviewed the research conducted in the UK and Australia where RDR has been implemented and the impact thereof on the financial planning industry in these countries. This study aimed to determine if the South African advisors have started changing their business models to ensure that they are ready for the implementation of RDR and to reduce the impact of RDR on their practices. An environmental scan was conducted in order to identify and understand other factors specific to the South African context which will impact the financial services industry in the future. Research was conducted via online questionnaires as well as personal interviews to determine the perception of clients pertaining to the trustworthiness and professionalism of financial advisors and what they perceive as value in terms of financial planning, their knowledge of RDR and the changing environment. Industry experts were given the opportunity to share their views regarding the impact of RDR on the industry as well as their proposals in terms of the implementation and roll-out of RDR.

Investment planning (as one of the key components of financial planning) is seen as an important solution to investment problems and challenges. Previous research however indicated that compare to men, women are not as confident and knowledgeable about financial and investment matters. As a result, women do not conduct investment planning until it is often too late and when they are confronted with a financial crisis or a life predicament such as a divorce or death. Given the lack of research attention focusing on women's perceptions of financial and investment planning in South Africa, and in particular the Eastern Cape, the objective of this research is to investigate the factors that influence women‟s Perceived successful investment planning in the Nelson Mandela Bay area. After conducting a comprehensive literature study, seven factors (independent variables) namely Values, Attitudes, Time horizon, Personal life cycle, Risks and Returns, Investment Knowledge, were identified as influencing the Perceived successful investment planning (dependent variable) of women. Various hypotheses were formulated to be tested in the empirical investigation. The validity and reliability of the measuring instrument were tested among 207 respondents. The Exploratory Factor Analysis, as well as the Cronbach‟s alpha coeffient analysis, revelead that Investment knowledge, Personal life cycle and Values are important factors that influence the women‟s Perceived successful investment planning. As a result of these analyses, the hypotheses had to be reformulated. In order to establish whether correlations existed between the various factors investigated in this study, Pearson Product Moment Correlation Coefficients were calculated. Positive correlations were found between all the variables, except between Values and Personal life cycle and between Values and Perceived successful investment planning. To analyse the association in which the effects of the independent variables (Investment knowledge, Personal life cycle and Values) have on the dependent variable (Perceived successful investment planning) of this study, multiple regression analysis was conducted. Only one independent variable emerged as having a significant influence on Perceived successful investment planning of women, namely Investment knowledge. In order to investigate the influence of the various demographic variables on the dependent variable, an Analysis of Variance was performed. No significant differences were found between the selected demographic variables, namely Age, Ethnic group, Marital status, Education and Investment experience and the independent variables or dependent variable of this study. By investigating the influence of women‟s Perceived successful investment planning, this study has added to the body of knowledge of both financial and investment planning. Based on the empirical results of this study, several recommendations have been made in an attempt to assist women to make better investment decisions and manage their investment planning more effectively.