Dominic Alafaci has won the 2000 Money Management Financial Planner of the Year award after coming runner up for two years in succession. John Wilkinson asks Alafaci the secrets of his success.
Dominic Alafaci’s route to financial planning, like so many others, was through accountancy.
“I started as an accountant in 1981 after I finished university,” he says. “I set up a little tax practice in Essendon and one day bought an annuity product from a T&G agent.”
Alafaci says this product introduced him to the concept of saving, not usually a high priority for a 21-year-old.
He became an agent for T&G life products which lead to him becoming licensed dealer for Queensland based Bondmark Investment Services.
He admits times have changed from when he became a licensed dealer in 1984.
“When I ran my own business it became a ‘pioneering’ financial planning practice,” he says. “There I gained experience in accounting, tax and life insurance during the four years I worked for myself.”
The move into giving financial advice saw Alafaci move to Bain & Co as a senior advisor in 1988. He was consistently in the Bain Top 10 advisers by specialising in tax-efficient strategies for high net worth clients.
Alafaci’s interest in computers also led him to taking an active role in Bain’s general management committee’s software review group.
In November, 1996, he was head-hunted to start a new financial planning division at HSBC.
“I had learnt a lot at Bain but this offered a new challenge,” he says. “I established a new financial planning division from its inception and developed a successful team which was eventually incorporated into the HongkongBank of Australia.”
Alafaci accepts global companies restructure, but that this sometimes creates new opportunities.
In his case the opportunity was to go back to running his own business in partnership with the respected Melbourne broking firm E.L.& C.Baillieu Stockbroking.
Collins House Financial Services was created to service the broker’s well-established client base and now employs nine staff, including four CFPs.
At Collins House, Alafaci encourages staff to achieve the highest professional competency, as well as encouraging more women to become involved in the profession.
This has extended to him encouraging his personal assistant to obtain the Diploma in Financial Planning, and supporting her to become a CFP.
Alafaci has always believed in putting something back into the profession and this has led to his long association with the FPA.
Currently he is a member of the finance committee, which involves meeting regularly with the board and chief executive to view the association’s financial position.
Alafaci was also a member of the FPA Victorian State Council from 1995 to 1997.
He has played a role in shaping the professional standards of the industry, having sat on both the FPA’s Towards Professionalism Task Force chaired by Russell McKimm and Professor Bill Berkitt’s competency standards review committee.
“I also assisted in the selection and construction of DFP6 exam questions, and assessed candidates’ DFP8 assignments for the Diploma of Financial Planning through RMIT University,” Alafaci adds.
For Melbourne radio listeners, he has become the public voice of financial planning. Every week Alafaci has a 30-minute segment on Ernie Sigley’s show on 3AW. This is the top-rating radio station in Melbourne and Alafaci says every time he mentions the FPA’s 1800 number, the number of calls to the association soars.
Away from the public gaze, there are a number of community activities Alafaci includes during his year.
Apart from giving regular talks on financial planning to community organisations such as Rotary, he is treasurer at the Monash Alumni Association. Alafaci obtained his Bachelor of Economics there in 1982.
“As a member of the executive committee, and chairman of the membership benefits sub-committee, I have been involved in the financial management of the association as well as the development and delivery of services to the 80,000 graduates of the university,” he says.
While a lot of his community work is geared towards giving financial information, Alafaci also is involved with his Italian community.
“I regularly give support to the local community, in particular to the Assisi Centre, an Italian-Australian community project which specialises in providing care and accommodation to senior citizens,” he says.
With three daughters, Alafaci also plays an active part in the fund-raising activities of their school in Melbourne’s northern suburbs.
However, there is a handicap to Alafaci’s busy community life.
He is a Collingwood supporter.
Alafaci is now involved in talking to younger players about financial issues they will be facing in their careers.
This is the third time Alafaci has entered the Money Management Financial Planner of the Year award. Twice he has been a very close runner-up. It is perhaps fitting that he should win in his 20th year in the profession.
