Professional Practice Management Presented by Anton Swanepoel Integrating regulatory reform into...
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Transcript of Professional Practice Management Presented by Anton Swanepoel Integrating regulatory reform into...
Professional Practice
Management
Presented by Anton Swanepoel
Integrating regulatory reform
into your FSP
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
Client Experience FSP Business
Business
Professional introduction People
Gather client information Planning
Agree on service to be rendered Process and procedures
Systems
Present proposal Operations
Agree on solution Marketing
Implementation Risk Management & Compliance
Ongoing advice and services Financial Management
Remuneration Profit/Loss
Shareholder Value=
RDR is about re-designing your practice into a first-class sustainable business
Conduct analysis & prepare report
Professional Practice Management
REP
Introduction
Gathering Information
Service Agreement
Conducting AnalysisPrepare Client Report
Present YourProposal
Accept / RejectProposal
Implementation
Ongoing Advice & Service
TrustQuality AdviceService ExcellenceValue Proposition
Client interaction and service delivery
Copyright
Dissatisfied
Neutral
Satisfied
Impressed
Raving Fans
Emoti
onal
Lev
el
Time
Your clients’ experience?
Turning clients into Raving Fans
➜ Integrity
➜ Competence
➜ Sound advice
➜ Service model
➜ Value proposition
➜ Delivering consistently
Client Value Proposition FSP Business
Business
Professional introduction People
Gather client information Planning
Agree on service to be rendered Process and procedures
Systems
Present proposal Operations
Agree on solution Marketing
Implementation Risk Management & Compliance
Ongoing advice and services Financial Management
Remuneration Model Profit/Loss
Shareholder Value=
How to re-design your practice and take your business to the next level
Conduct analysis & prepare report
Business management
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
Non-profitableClients
Break-evenClients
ProfitableClients
Profi
tabi
lity
Number of Clients
Key challenges: Service model and pricing
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?
If you are outnumbered or feel intimidated … partner!!
Strategic positioning of your FSP
FSP
Client
FICA
FSLGAA
TWINPEAK
TCF
RDR
ILAA
POPI
BindersFAIS
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
Business
Professional introduction People
Gather client information Planning
Agree on service to be rendered Process and procedures
Systems
Present proposal Operations
Agree on solution Marketing
Implementation Risk Management & Compliance
Ongoing advice and services Financial Management
Remuneration Profit/Loss
Shareholder Value=
Integration of all the regulation requirements in the client interaction process
Conduct analysis & prepare report
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• License fees• Fit and proper requirements• Operational ability• Financial soundness requirements
2. First meeting• Travel • Professional time• Paperwork
3. Financial planning • Obtaining additional client information from
third parties• Needs analysis• Risk profile
4. 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• Professional time
6. Agreement• Advice risk• Transactions must be accurately accounted for
7. Implementation and confirmation of transactions• Professional time• Resources• Compliance
8. Ongoing advice and service model• Professional time and resources• Advice risk
www.cebs.co.za
Client Experience FSP Business
Business
Professional introduction People
Gather client information Planning
Agree on service to be rendered Process and procedures
Systems
Present proposal Operations
Agree on solution Marketing
Implementation Risk Management & Compliance
Ongoing advice and services Financial Management
Remuneration Profit/Loss
Shareholder Value=
Integration of all the regulation requirements in the management of the business
Conduct analysis & prepare report
Business management
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 super-assistants
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?