Kyle Brown, a director and financial adviser at Directions Wealth Management, recently completed the CFP® Certification Program. He talks about what being a CFP® professional means to him and what it means for the future of the financial planning profession.

As a planner working out of Australia’s smallest capital city, Hobart-based Kyle Brown doesn’t let the small-city syndrome get him down. On the contrary, he sees it as an asset.

Despite the last 10 years seeing the mainstay of the Tasmanian economy – the timber industry – significantly dwindling to less than a quarter of the size it once was, Tasmania is reinventing itself.

Its stunning landscape, reputation for healthy living and small town feel is a magnet for tourism and increasingly, a retirement destination for many mainlanders. And this, Kyle believes, is creating opportunities for planners working in the Apple Isle.

“On the advice front, Tasmania and more specifically, Hobart, is a true services economy with no real standout industry that defines our economic activity. Our largest employer is a mix between state and federal governments,” Kyle says.

“Consequently, we have a vast spread of clientele with varying advice needs across the spectrum. This means that in Hobart, you must have a diverse service offering and be appropriately educated and experienced in multiple advice streams.”

With such an eclectic clientele, and a burgeoning retirement population, Kyle believes there is a real need for Tassie planners to keep their skills at the forefront across multiple facets of advice.

Becoming a CFP^® professional

It was this very belief to be the best he could be that motivated Kyle to become a CFP^® professional, which he also viewed as being part of the course of belonging to a profession, and adhering to the highest professional and ethical standards held by that profession.

“It has always been important to me that I work in a fashion that embodies all aspects of professionalism. For me, my personal definition of professionalism incorporates going beyond entry level qualifications; a true professional actively seeks to go beyond the bare minimum,” he says.

“I felt it was important to obtain the highest professional designation relevant to my field of work. And for me that was the CFP^® Mark.”

But what also attracted Kyle to the CFP^® Certification Program was the global recognition that the CFP^® designation brings, reflecting the global standard of professionalism in financial planning. “I do appreciate that the designation is set at such a high standard that it is globally recognised,” he says.

“Committing to the CFP^® Mark also aligns a planner to the FPA. The FPA stands for professional and ethical conduct. The FPA is committed to these important qualities and goes to length to promote professional behaviour aligned to these virtues.

“Simply put – I don’t see how you could go wrong aligning yourself to a professional body with such high regard for professional behaviour and standards.”

A considered approach to planning

Kyle’s approach to his CFP^® Certification studies meant working within two key guidelines.

Firstly, he took an organised approach and implemented a structured plan for each unit.

“For me, it was imperative to map out the workload that each unit entailed and cross referenced this with the time that I had to complete each submission. Surprisingly, I found having a plan and getting to tick off milestones as I went along, made the study less daunting and even, dare I say, more enjoyable.”

Secondly, he allowed a significant amount of personal time to get through the volume of work required for each unit.

“By starting my studies early from week one of each semester, I found that time was on my side,” he says.

“It’s not the sort of study that can be left to the last minute, as time quickly turns against you. My aim was to finish ahead of deadline. This allowed me the time to tackle anything unexpected that came up along the way, which often occurred.”

Kyle admits that by working within personally constructed boundaries resulted in him achieving a consistently high quality level of work, which simply became a default by-product by the end of the program. It’s something he is proud of.

The importance of ongoing education

Considering his personal approach to studying, how does he view structured and ongoing education for planners in the profession?

He believes it is crucial.

“Evolution or change is happening all around us and at an increasingly rapid pace. No industry or profession will positively thrive without evolving and growing over time,” he says.

“Our profession must continue to evolve in order to unshackle some of the negative stigma associated with the indiscretions of a small minority from the past. I believe education is the key to evolution and growth,” he says.

“Therefore, ongoing education is highly important. With that said, education can come in a number of different forms. Formal study is the most direct and obvious. But there is also peer-to-peer consultation, or just being open-minded during the client relationship experience.

“For planners to be relevant to their clients, they must be prepared to evolve and grow. Planners should have faith that so long as they continue to apply themselves to the learning process, positive evolution will occur which will be for the greater good.”

Challenges for financial planners

Kyle isn’t alone when he sees a multitude of challenges facing the financial planning profession, including regulatory and legislative change, market volatility, costs, automated investing services and political instability.

But he concedes while the profession faces many challenges, planners should always keep at the forefront the challenges that their clients face.

“These are the challenges we are capable of assisting them with,” Kyle says. “One noteworthy challenge for our clients is the impact that current economic conditions are having on their respective financial positions.

“Household budgets are under pressure and our clients are feeling it.

“Our clients are working harder and longer hours, yet income and wage growth is low. The cost of living is expensive and inflation is at record lows. The cost of housing is frightening. Investment returns are not what they used to be. Retirees face low cash rates on their savings and reducing Centrelink benefits are subject to increased scrutiny.

“Unfortunately, when times are tight, insurance and voluntary superannuation contributions are being treated as discretionary spending – despite their never-ending importance.

“Ultimately, it’s these kinds of household budgetary pressures on our clients that impact the planning professional and the solutions we can help provide. These are the challenges of financial planning.”

But despite these challenges, Kyle is a passionate advocate of the profession and actively encourages any planner considering becoming a CFP^® professional to take the next step.

So, what advice does he have to offer?

“Firstly, have a plan and stick to it. You literally should write one down and tick it off as you go. And secondly, allow plenty of time to complete the CFP^® Certification Program, as time is a resource that will evaporate quickly. So, start working through your plan and the course work from day one.”

Kyle also believes it’s important to have self-belief when studying and to practise positive thinking.

“When things get tough, it can be helpful to remind yourself: I am capable of achieving good marks. It’s entirely up to me. I just need to stick to the plan, put in the hard work and as a result, I will achieve a good outcome.”

And equally important is good mental health. This is something Kyle religiously observed, by allowing himself the time to unwind and relax from his studies.

“For me, good mental health means spending time with your family and reminding them how much you love them,” Kyle says. “But it also means allowing some time for yourself. My outlet was cycling. Whilst I’m not as capable as fellow Tasmanian Richie Porte, who came fifth in this year’s Tour De France, cycling sure did help clear my mind and aided in relaxation.”

Words of financial wisdom

And what’s been the best financial words of wisdom Kyle has received that’s helped him as a planner and as a person?

He says two quotes come to mind.

“I was once in need of personal guidance myself. A trusted friend of my parents who had been highly successful in the Tasmanian business community told me, ‘The best advice I can give you is to go and get good advice’. I am truly fortunate that clients allow me to provide them advice that is important to them.

And the second quote?

“Well, it’s a quote from Matt Brown, the CEO of Financial Services Partners: ‘That is a by-product of mathematics’. It’s a fine example of a quality managerial talk that gave myself and fellow advisers a good laugh at the time.”