Transcript FAIS / FICA / POPI / TCF / RDR?
Professional Practice Management
Integrating regulatory reform into your FSP Presented by Anton Swanepoel
Key regulatory challenges for the IFA
2.
3.
4.
5.
6.
1.
Financial Advisory and Intermediary Services Act
(FAIS)
The General Code of Conduct
(FAIS)
Financial Intelligence Centre Act
(FICA)
Treating Customers Fairly
(TCF)
Protection of Personal Information Act
(POPI)
Retail Distribution Review
(RDR)
Positive vs negative outcomes
4.
5.
6.
1.
2.
3.
FAIS –
Raising
the bar The General Code of Conduct –
professionalising
the financial services industry FICA –
Prevention
of Organised Crime, Money Laundering etc.
TCF – A basic business
requirement
POPI –
Preventing
soliciting and identity theft RDR – Calculate
fair remuneration
for professional services rendered
Professional Practice Management
Client Experience Professional introduction Gather client information Agree on service to be rendered Conduct analysis & prepare report Present proposal Agree on solution Implementation Ongoing advice and services Remuneration FSP Business People Planning Process and procedures Systems Operations Marketing Risk Management & Compliance Financial Management Profit/Loss Business
=
Shareholder Value RDR is about re-designing your practice into a first-class sustainable business
Client interaction and service delivery
Ongoing Advice & Service Introduction Trust Quality Advice Service Excellence Value Proposition Gathering Information Implementation Accept / Reject Proposal
REP
Service Agreement Conducting Analysis Prepare Client Report Present Your Proposal
Your clients’ experience?
Dissatisfied Neutral Satisfied Impressed Raving Fans
Time
Copyright
Turning clients into Raving Fans
➜
Integrity
➜
Competence
➜
Sound advice
➜
Service model
➜
Value proposition
➜
Delivering consistently
Business management
Client Value Proposition Professional introduction Gather client information Agree on service to be rendered Conduct analysis & prepare report Present proposal Agree on solution Implementation Ongoing advice and services Remuneration Model FSP Business People Planning Process and procedures Systems Operations Marketing Risk Management & Compliance Financial Management Profit/Loss Business
=
Shareholder Value How to re-design your practice and take your business to the next level
Key challenges
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Value proposition Service model and consistent delivery Pricing of your services Your people Strategic planning Process and Procedures Systems and Operations (hardware, software and workflows) Marketing and generation of new prospects Risk Management and Compliance Financial Management
Key challenges: Service model and pricing
Profitable Clients Break-even Clients Non-profitable Clients
Number of Clients
Re-imagine delivery and remuneration
➜ Re-imagine the strategic positioning of your business ➜ Re-imagine your customer value proposition and service model ➜ Re-imagine your business
efficiencies
➜ Then re-imagine your
remuneration model
Strategic positioning of your business
➜ Identify key challenges ➜ Do you need help?
➜ What is your value proposition?
➜ How do I price my products and services?
➜ How does one optimise your business efficiencies?
➜ Can you outsource your non-core business?
Strategic positioning of your FSP
Client FAIS Binders FICA POPI
FSP
FSLGAA ILAA TWIN PEAK RDR TCF If you are outnumbered or feel intimidated … partner!!
Potential partnerships
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Consider agency or join a bigger FSP Partnership through association Staying independent and outsource non-core business activities Fund management – Model Portfolios Business management programme and/or business consulting Support with service model design and implementation Individually branded client reporting Compliance Legal support A fully integrated CPD training programme
Client interaction and client experience
Client Experience Professional introduction Gather client information Agree on service to be rendered Conduct analysis & prepare report Present proposal Agree on solution Implementation Ongoing advice and services Remuneration FSP Business People Planning Process and procedures Systems Operations Marketing Risk Management & Compliance Financial Management Profit/Loss Business
=
Shareholder Value Integration of all the regulation requirements in the client interaction process
Your professional introduction
1.
2.
3.
4.
5.
6.
7.
8.
Letter of introduction Compliance document vs Marketing document Content Branding Look and feel Electronic version Optimisation
FAIS / FICA / POPI / TCF / RDR?
www.cebs.co.za
Gathering your client’s information
1.
2.
3.
4.
5.
Personal information FICA information and confirmation Needs analysis questionnaire Risk profiling discussion
FAIS / FICA / POPI / TCF / RDR?
www.cebs.co.za
Your client service agreement
1.
2.
3.
4.
5.
Client service request Client service instruction Service level agreement Confidentiality agreement and POPI declaration
FAIS / FICA / POPI / TCF / RDR?
www.cebs.co.za
Conducting your analysis and preparing the report
4.
5.
6.
7.
8.
1.
2.
3.
Executive summary of the client’s needs and objectives Cash flow analysis Targeted return and relationship between risk and return Highlight the required risk Explain risk capacity Address risk tolerance Written recommendations
FAIS / FICA / POPI / TCF / RDR?
www.cebs.co.za
Presenting your client proposal
1.
2.
3.
4.
5.
6.
7.
8.
Confirming the client’s needs and objectives Cash flow analysis Using cash as the point of reference Using inflation as a benchmark Explain risk vs return again Focus on the investment strategy He who owns the plan owns the client Position the plan first, product last 9.
Position the investment strategy and the importance of the ongoing monitoring and service model
10.
FAIS / FICA / POPI / TCF / RDR?
www.cebs.co.za
Agreeing on your proposal
1.
2.
3.
4.
5.
6.
Advice agreement Service agreement Value proposition and service model Transactions must be accurately accounted for Optimisation
FAIS / FICA / POPI / TCF / RDR?
www.cebs.co.za
Implementation
1.
2.
3.
4.
5.
6.
7.
Fully completed application form Scanning of documentation Submission of application Follow up Finalisation of application Confirmation letter to client
FAIS / FICA / POPI / TCF / RDR?
www.cebs.co.za
Ongoing advice and service value proposition
2.
3.
4.
5.
6.
7.
1.
Ongoing value proposition per client segmentation Quarterly investment reports (own branding) Six-monthly feedback Annual reviews Minutes of meetings
FAIS / FICA / POPI / TCF?
Retail Distribution Review (Re-imagine delivery and reward)
www.cebs.co.za
RDR: Re-imagine delivery and remuneration
1.
2.
3.
4.
• •
Standard cost for every FSP
License fees Fit and proper requirements • • Operational ability • • Financial soundness requirements
First meeting
Travel Professional time • • Paperwork
Financial planning
Obtaining additional client information from third parties • • • Needs analysis • Risk profile
Conducting an analysis and prepare a client report
Professional time Suitability
www.cebs.co.za
RDR: Re-imagine delivery and remuneration
5.
6.
7.
8.
•
Presenting the report
• Professional time
Agreement
Advice risk • • Transactions must be accurately accounted for
Implementation and confirmation of transactions
Professional time • • • Resources • Compliance
Ongoing advice and service model
Professional time and resources Advice risk
www.cebs.co.za
Business management
Client Experience Professional introduction Gather client information Agree on service to be rendered Conduct analysis & prepare report Present proposal Agree on solution Implementation Ongoing advice and services Remuneration FSP Business People Planning Process and procedures Systems Operations Marketing Risk Management & Compliance Financial Management Profit/Loss Business
=
Shareholder Value Integration of all the regulation requirements in the management of the business
People
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Your personal fit and proper requirements The brand called You What is your own, unique value proposition?
Developing your people Fit and proper requirements Develop the next generation of super assistants Introducing a super-assistant development programme Employment contract Performance appraisals aligned with your value proposition to clients
FAIS / FICA / POPI / TCF / RDR?
Planning
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Articulate your vision for the business Determine your current position in the industry Do a SWOT analysis Do a gap analysis Identify your main strategic goals Do your strategic planning Draft your business plan Identify your outsourcing opportunities and partnerships Draft your marketing plan
Implement!
Process and procedures
1.
2.
3.
4.
5.
6.
7.
8.
9.
Client interaction Record-keeping Client correspondence Submission of new business Confirmation of transactions Service model Compliance audits and reports Management and overseeing of activities
FAIS / FICA / POPI / TCF / RDR?
Process: SMaC (Specific, Methodical and Consistent)
Systems and operations
1.
2.
3.
4.
5.
6.
7.
8.
Operational ability Offices Infrastructure Technological systems Hardware Software Work flows
FAIS / FICA / POPI / TCF / RDR?
Marketing
1.
2.
3.
4.
5.
6.
Website Branding Documentation Value proposition Turning existing clients into fans
FAIS / FICA / POPI / TCF / RDR?
Risk management and compliance
1.
2.
3.
4.
5.
6.
7.
Advice risk Business plan Disaster recovery Business continuity FAIS / FICA / POPI / TCF / RDR External compliance and business consultant
FAIS / FICA / POPI / TCF / RDR?
Financial management
1.
2.
3.
4.
5.
6.
Pastel / VIP Business information Financial management Annual financial statements Business planning and ongoing cash flow management
FAIS / FICA / POPI / TCF / RDR?
General
7.
8.
9.
1.
2.
3.
4.
5.
6.
Gap analysis Client value proposition and client experience Critical evaluation of your client interaction process Critical evaluation of your pricing model Critical evaluation of your business efficiencies Critical evaluation of your management style and effectiveness Identify your priorities Prioritise, plan and implement accordingly SESSIONS@STANLIB survey
Questions?