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This was not always the case. Ascor, which currently has more than ZAR650m in assets under management, started out in 2005 after trained tax accountant Fourie merged his practice with De Kock’s audit firm, Assurance Advisory. The pair then set about gaining their CFP with the Financial Planning Institute (FPI) of South Africa.
“Brainwashed by the insurance companies,” as Fourie puts it, back then the firm began life as a commission-only business before the two directors realised it was not a sustainable business model.
“It does not make sense to earn a one-off commission and then support and maintain advice ‘free of charge’ for the rest of the life of the product.
“We also realised that advice is not a product; the product is the solution to be used to address a specific need identified during the advice process.
“In most situations, advice will not result in the need for a new product. There may be a tweak of the current product but not always a new one. The only way you can earn income if you don’t charge fees is by replacing every product with a new one.
“This approach is only beneficial for the person earning commissions on the product, not for clients,” Fourie says.
Do the right thing
Ascor became a fully fledged fee-charging IFA in 2008. It was built on the duo’s shared vision of creating a ‘one-stop shop’ for financial services where clients could have their financial planning, tax and accounting needs attended to in one place, underpinned by great service.
A mantra the pair hold dear and could well be the secret behind their success is “Keep on doing the right thing”. “This may mean less initial income earned but an income stream that will last longer,” says De Kock.
A continued drive towards best practice and expertise has won the firm several accolades in recent years, and it is one of the first practices to have been approved by the FPI.
However, forging a stellar reputation in an industry dogged by mistrust has been no easy feat, says Fourie, adding that one of the greatest challenges of running a client-centric business is the difficulty in finding and training good staff.
The firm currently targets a clientele of high net-worth individuals with business interests, professionals such as doctors and lawyers who run their own practices and increasingly people approaching retirement.
“A question asked by most clients is ‘Can I afford to retire?’. Another pertinent question would be ‘What happens to my wealth/business if I die today?’,” says Fourie.
Fourie’s clients-come-first approach led to his being named the FPI’s financial planner of the year for 2015/16, a prestigious award that resulted in his appointment on the trade body’s board of directors as an industry-elected representative.
Fourie has literally rewritten the rulebook for financial advisers in South Africa, after co-authoring ‘The Code of Ethics Business Manual for CFP Professionals’ with industry stalwart Anton Swanepoel.
Ascor has also been instrumental in setting up a financial adviser trainee programme at the FPI, as well as striving to improve the perception of the industry by appearing on various national radio stations and financial publications.
