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29 Sep 2020

The unexpected benefits of Level 5

Many of our Professional IQ College students tell us they’re finding unexpected benefits from the New Zealand Certificate in Financial Services (Level 5) qualification – including the ability to draw links between the ‘bigger picture’ (macroeconomic facts and events), and the not-so-obvious ways it can impact clients’ financial lives.

Core Knowledge – bridging it all together

If you’re like most advisers approaching their Level 5 training, you may instinctively see value in Enrol with PIQthe industry-based strands. After all, this is where your practical expertise seems most applicable. But remember, financial outcomes don’t happen in a vacuum, and this is what the Core Knowledge module is all about – that ‘big picture’ insight.

Think of it as the ‘glue’ that binds all things together, showing how seemingly unrelated elements are actually connected. Changes in the official cash rate, for example, have an impact on mortgage rates, which in turn affect your clients’ disposable income – and possibly their insurance spending, or how much money they have available to invest.

Inflation is another good example. Higher inflation can reduce insurance affordability. Premiums tend to increase as it costs the insurance provider more to replace a stolen item. At the same time, your clients may have less disposable income, and may be less likely to be able to afford higher premiums.

Foreign exchange rates, legislative and regulatory changes, national and international political and economic events – even though it might not be immediately obvious, everything is intertwined…

How a ‘big picture’ approach can benefit you and your clients

With Covid-19 highlighting the micro/macro links that are embedded in our economic fabric, it’s no coincidence that more and more advisers are finding Core Knowledge helpful.

In this complex framework, understanding the cause/effect mechanics can benefit both you and your clients in more than one way:

  1. Informed business planning – It can help you prepare for the impact of macro events on your potential and existing clients and market, be it insurance, home loans or investment advice.
  2. A more holistic approach to your clients’ finances – From a client’s perspective, there’s comfort in working with an adviser who takes a holistic view of their needs. Whether you can assist yourself or refer to a specialist for certain needs, there’s real value in working with a professional who can spot areas for attention.
  3. More proactive response to your clients’ needs – Seeing the big picture doesn’t mean becoming an expert in all areas. It means being better equipped to identify areas that need attention, and if necessary, recommending experts in other fields that might be able to help. At the end of the day, it’s always about doing what’s the best for your client.

We’re here to help you

As the new benchmark qualification for financial advisers, the NZ Certificate in Financial Services (Level 5) can do more for you than just refreshing your knowledge. It can also expand your horizon, providing you with the tools to interpret a changing world.

Click here to learn more about gaining your Level 5 qualification with Professional IQ College, and get your training underway.