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