FAIS / FICA / POPI / TCF / RDR?

Download Report

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?