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How FSPhub Solves Financial Advisor Compliance Woes

There are two main things that annoy financial advisors about the industry:

  1. Programs, tools and products that don’t comply with FAIS and other legislation.
  2. Difficulty of getting the right information at the right time, and the use of many tools/programs that decrease productivity.

Did you know that FSPhub solves these problems? In this blog post, we are going to explain how our tool can change your life.

Compliance

The Financial Services Board (FSB) is a unique independent institution established by statute to oversee primarily the South African non-banking financial services industry in the public interest. The FSB has some regulatory responsibilities with respect to banks in terms of market conduct issues. The FSB supervises financial advisory and intermediary activities in the financial services sector through its Financial Advisory and Intermediary Services (FAIS) department in terms of the Financial Advisory and Intermediary Services Act, 2002 (the FAIS Act).

The act is based on:

  • The operational ability of FSPs to manage financial records, maintain internal controls, keep client records and deal with client funds;
  • The ability of FSPs to deal with clients, including providing a financial needs analysis to a client; properly disclose who they are, specify the financial products and services they are permitted to provide, who supplies the products and give specific information relation to the nature and features of the products as well as the cost for the client in obtaining any product or service;
  • Proper conduct for advertising, marketing and canvassing;
  • The FSP having a complaints procedure; and
  • A structure and contingency plan on how an FSP will be closed down.

What this means for you

If you are a lawyer or have the time to dig deep into every piece of legislation that governs your work, understanding FAIS may be easy, but for most, it’s difficult to understand what constitutes compliance. It is also difficult for most financial advisors to ascertain whether their current practices are in alignment with FAIS rules.

One such example is according to FAIS law, documents should be readily available offsite and free from destruction. But does this mean that documents dropped in a pile at your grandma’s house are okay?

The FAIS law also stipulates the following:

  • Each record/document needs to be kept for at least five years after the cancellation of a contract/client. This obviously assumes faultless record-keeping.
  • That all work should be done in line with approved business processes.
  • There needs to be adequate and competent management in place.

To avoid confusion, we have created FSPhub. FSPhub is a tool that helps improve the synergy of your small team or even connect your various branches into one central hub.

Amongst many other things, FSPhub can:

  • Provide you with an easy way to get your documents scanned and linked for proper filing.
  • Automatically insert a code in each email or SMS that is sent. When the recipient replies to an email, this code enables FSPhub to automatically link the reply to the correct task, client or contact. This prevents misfiling and saves you a lot of time.
  • Make it easier to quickly find a document as shortcuts are automatically inserted in three different (logical) places in the system.

The use of FSPhub, therefore, makes compliance almost a non-event – if you are going to put processes in place they may as well be compliant. It is almost inconceivable that the FAIS law can be complied with in all respects without the use of a system like FSPhub.

We have only touched the surface in this blog post, contact us to learn more about FSPhub.