PowerPoint PresentationSTANLIB/Documents/Sessi… · PPT file · Web vie. Presenting your client proposal. Confirming the client’s needs and objectives. Cash flow analysis

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




Systems





Remuneration Model Profit/Loss

Shareholder Value=

How to re-design your practice and take your business to the next level


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


Business




Systems






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


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


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


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


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


Business




Systems






Shareholder Value=

Integration of all the regulation requirements in the management of the business


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


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


Marketing

1. Website

2. Branding

3. Documentation

4. Value proposition

5. Turning existing clients into fans


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


Financial management

1. Pastel / VIP

2. Business information

3. Financial management

4. Annual financial statements

5. Business planning and ongoing cash flow management


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?