Preparing for COFI: Key takeaways from the COVER Webinar
- COVER
- 9 hours ago
- 4 min read
The regulatory landscape for financial services providers is evolving, and the upcoming Conduct of Financial Institutions (COFI) framework is set to be one of the most significant shifts the industry has faced in years.
Recently, FSPHub joined a COVER-hosted webinar to discuss what COFI could mean for financial advice businesses and how firms can start preparing for the transition. The session brought together industry experts including Anton Swanepoel, entrepreneur and founder of Trusted Advisers, Jaco Moolman, founder of Lighthouse Risk Consulting, and the FSPHub team Craig Grasko, Business Development Director and Sean Barrett, CEO. The webinar was hosted by Tony van Niekerk, Managing Editor of COVER. The conversation provided valuable insight into the practical realities of COFI and highlighted a clear theme: the time to prepare is now.
COFI Is coming: preparation should start now
While the COFI Bill has not yet been promulgated, industry experts believe it is only a matter of time before the framework is formally introduced. Once enacted, financial institutions will likely be given a transition period to align with the new regulatory requirements. However, waiting until the final legislation is published could place unnecessary pressure on advisory businesses. COFI represents a move toward conduct-based regulation across the entire financial sector, placing responsibility for fair customer outcomes on both intermediaries and product providers. For financial services providers, this means governance, culture, client engagement, and operational transparency will receive greater regulatory scrutiny.
Breaking down the COFI “Elephant”
One of the recurring themes during the webinar was that COFI can feel overwhelming at first glance, particularly for smaller advisory practices. However, the panel emphasised that the transition should not be viewed as a single massive project. Instead, businesses can start by focusing on foundational elements and building from there. Much of the work already done under the FAIS framework will remain relevant. The key difference is that COFI will place greater emphasis on how firms demonstrate governance, accountability, and consistent client outcomes. By approaching the transition incrementally, advisory businesses can spread the effort over time and avoid the risk of last-minute compliance pressure.
Governance and culture will be critical
A central focus of COFI will be the role of governance and leadership within financial services businesses. The governing body of an FSP will carry explicit accountability for embedding ethical conduct and a Treating Customers Fairly (TCF) culture within the organisation. This means businesses will need to move beyond simply having policies in place. Instead, they will need to demonstrate that governance structures, leadership decisions, and operational processes consistently support fair client outcomes. For many firms, this will involve reviewing governance frameworks and ensuring leadership responsibilities are clearly documented and understood.
Compliance must be part of the business
Another key point raised during the discussion was the need to integrate compliance into everyday business operations. Compliance cannot be treated as a separate function that sits outside the advice process. Instead, it needs to be embedded within how advisory businesses operate. Structured reporting, documented workflows, and effective risk management all play an important role in ensuring businesses maintain oversight of their compliance obligations. When compliance processes are integrated into operational systems, firms are better positioned to identify risks, address gaps, and maintain consistent standards.
Technology can simplify compliance
Technology has a critical role to play in supporting advisory businesses as regulatory expectations evolve. At FSPHub, we see firsthand how integrated systems can help firms streamline their operations while maintaining strong compliance standards. Platforms that incorporate workflow automation, communication tracking, and centralised client records allow advisory practices to build consistent processes and maintain comprehensive audit trails. This not only improves operational efficiency but also ensures that compliance becomes part of the normal workflow rather than an additional administrative burden. However, technology is most effective when it supports well-defined processes and governance structures. Systems alone cannot solve compliance challenges, but they can significantly reduce the operational complexity involved in managing them.
Compliance as a competitive advantage
One of the most important takeaways from the webinar was the opportunity for advisory businesses to rethink how they view compliance. Rather than treating regulation purely as an obligation, firms can use strong governance and transparent processes to strengthen their credibility and build trust with clients.
In an industry built on relationships and professional advice, trust remains one of the most valuable differentiators. Firms that embrace structured processes, consistent client engagement, and effective oversight will not only meet regulatory expectations, but they will also position themselves as trusted advisors in an increasingly competitive market.
Looking ahead
The timeline for COFI may still be uncertain, but the direction of the regulatory environment is clear. Conduct, governance, and customer outcomes will continue to move to the forefront of financial regulation. For financial services providers, the best strategy is to start preparing now. By strengthening governance, embedding compliance into operational processes, and leveraging the right technology, advisory businesses can navigate the transition more smoothly, and build stronger practices in the process.
At FSPHub, we remain committed to supporting financial services providers with the tools and systems needed to manage their businesses effectively in an evolving regulatory landscape.
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