Ethics, AI and the future of financial planning: Key insights from FPi’s Ethics and AI Masterclass
Artificial intelligence (AI) is changing the way financial planners work, but one message came through clearly during FPI’s Ethics and AI Masterclass: while AI can make work easier, efficient and more streamlined, it cannot replace professional judgement, ethics and accountability.
Opening the masterclass, Nici Macdonald, CFP®, Head of Certification and Standards at the Financial Planning Institute (FPI), explored ethical decision-making in a technology-enabled advice process. While much of the discussion focused on AI, she reminded delegates that these are not new challenges brought about by AI alone. Financial planners have long relied on technology, including financial planning software, research tools and other digital platforms to support the advice process. The same ethical principles that apply to those tools also apply to AI.
Macdonald explained that technology can be valuable for tasks such as research, scenario modelling, planning checklists, data analysis and drafting client communication. However, these tools should support, not replace the planner’s own thinking. Professional judgement is still needed to assess assumptions, test whether recommendations are suitable and ensure advice is in the client’s best interests. This is where adviser intelligence becomes essential, with human intervention remaining the most important part of the advice process.
Drawing on findings from FPI’s Capstone Assessment, she highlighted seven ethical risks that planners should keep in mind when using AI. These include advice that is not joined up, recommendations that clients cannot afford to implement, incorrect assumptions, generic advice that is presented as personalised, focusing on products instead of what is best for the client, missing important client needs and communication that sounds professional but does not help clients fully understand their options. Her message was simple: AI can support financial planners, but it cannot replace sound judgement and ethical decision-making.
The second session was led by Rianné Potgieter, Chartered Accountant (SA), Compliance Professional (SA), CEO of the Compliance Institute Southern Africa and Chair of the International Federation of Compliance Associations (IFCA).
Potgieter explored the intersection of financial crime, ethics, compliance and artificial intelligence, highlighting how emerging technologies are being used by both criminals and financial institutions for very different purposes. She warned that a global skills gap is developing as criminals increasingly exploit AI and other technologies to commit fraud, reinforcing the need for financial planners to recognise their role as gatekeepers in protecting the integrity of the financial system.
Introducing the EFT model as a practical framework for strengthening ethical compliance, she cautioned against placing “blind trust” in AI-generated information. Drawing on the 1MDB money laundering scandal, in which Singapore took significant enforcement action against financial institutions and individuals involved, she demonstrated the risks of relying on technology or information without proper verification. She encouraged delegates to use AI as a powerful support tool while continuing to exercise professional judgement, ethical decision-making and human oversight. Potgieter concluded by calling for closer collaboration between compliance and financial planning professionals to strengthen resilience against financial crime and emerging technology risks.
Lelané Bezuidenhout, CFP®, Chief Executive Officer of FPI, then introduced the Financial Planning Standards Board’s Practice Guidance Note on the use of AI in financial planning. She explained that AI is already being used in education and across the financial planning profession and that the quality of the answers received from AI depends on the quality of the prompts given.
Bezuidenhout highlighted the main risks of AI and reminded delegates that accountability always stays with the financial planner. While AI can support all six steps of the financial planning process, it cannot replace professional expertise or critical thinking. Instead, it should help planners do their jobs better. She also discussed where professionals are likely to come across AI in their daily work, how ethical principles should become everyday behaviours and why planners should be able to explain AI in simple language that clients can understand. She concluded that as AI becomes more common, communication, ethics and professional judgement will become even more important.
The final session was presented by Francois du Toit, CFP®, Founder of PROpulsion, who focused on the practical side of using AI in financial planning businesses. He said firms should be able to answer three simple questions before using any AI tool with client information: Is there a written agreement in place? Where is the information being processed? And what happens to the information after it has been shared?
Du Toit also cleared up common myths about AI, including the difference between free or personal AI tools and business versions. His message was that choosing the right tool is only part of the picture. What matters most is having the right processes, protecting client information and making sure people remain responsible for the final advice.
Throughout the masterclass, one theme remained consistent: AI is here to stay, but trust will always depend on people. Technology can support financial planners, but ethics, professional judgement and accountability will continue to be the foundation of good financial advice.
Watch the masterclass
Register to access the recorded session: https://fpi.co.za/ethics-and-ai-masterclass-2026/ and hear directly from the experts on how financial planners can navigate the opportunities and ethical challenges presented by AI.
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About The Financial Planning Institute of Southern Africa
The Financial Planning Institute of Southern Africa NPC (FPI) is the only professional body in Southern Africa authorised to offer the FSA®, RFP® and internationally FPSB-recognised CFP® professional designations. As a South African Qualifications Authority (SAQA) registered professional body, FPI ensures that its professional designations are listed on the National Learner Record Database (NLRD), affirming its commitment to educational and professional excellence. FPI is also approved by the South African Revenue Service (SARS) as a Recognised Controlling Body (RCB), further underscoring its role in upholding high standards in the financial planning profession.
For more information about FPI professional membership, please contact us at businessdevelopment@fpi.co.za or call +27 (11) 470 6000.
For more information about the Financial Planning Institute of Southern Africa, visit www.fpi.co.za.
