|dc.contributor.author||Venter, Jan MP||
|dc.description||Thesis (Ph.D. (Chartered Accountancy))--North-West University, Potchefstroom Campus, 2009.||
|dc.description.abstract||The thesis aimed to determine if the factors that financial advisors consider when
preparing a financial plan (to address their customers' financial needs and objectives)
are the same as those considered to be important by the customers. The study also
aimed to determine if recent developments in the financial services industry managed to
address the expectation gap in the financial services industry.
The study started with an in-depth literature review to analysed the factors that influence
the relationship between the financial advisors and customers, established what
information is used to determine a customer's financial needs and objectives, and
identified how a financial plan can be used to manage risk, plan for investment and plan
a person's estate.
The result of the literature review was used to prepare two questionnaires, one for users
of financial services and one for registered financial advisors. The aim of the study was
achieved by comparing the opinions of users of financial services with those of financial
advisors. The results of this comparison were used to identify any expectation gaps that still exist.
The statistical analysis done on each of the three components of a financial plan
identified statistically significant differences in the opinions of users of financial services
and registered financial advisors. One of the biggest concerns revealed by the study is
the apparent lack of an understanding of the consequences certain specific actions
have - not only by the customers but also by the financial advisors. For example, both
customers and financial advisors did not totally agree that all information should be
disclosed when applying for risk cover despite the fact that non-disclosure could
invalidate the cover.
The study found that there is a lack of knowledge amongst customers of the principles
on which investment management should be based. The study also revealed that there
is a difference in opinion between the two groups regarding the importance of the
factors to consider when selecting an investment. There is a clear need for customer
training in this field .
The investigation into estate planning found an expectation gap relating to the cost and
benefits associated with this process. To reduce this expectation gap the financial
advisor must provide his or her customer with clear guidelines on what can be achieved
during this process before providing customers with any advice.
One of the biggest expectation gaps identified was that despite the fact that customers
think all fees and commissions payable should be disclosed when obtaining financial
advice and using financial products, financial advisors do not agree with this.
To reduce the expectation gap there must be an alignment of the objectives of the
customer and financial advisor. By aligning their objectives the financial advisor will be
able to ensure that the customer's objectives are met in the planning process.||
|dc.subject||Personal financial planning||en_US
|dc.title||An analysis of the expectation gap in the personal financial services industry in South Africa||en