The cost of failure is too high not to have regular, systematic compliance reviews with the processes for speedy resolution of any compliance breakdowns identified.
Strategi Limited is New Zealand’s most respected provider of compliance and best practice services to the financial services industry. Our Compliance Diagnostics services are an insurance your business cannot afford to be without.
Compliance diagnostic services
The benefits of an external compliance review include:
- Minimising the risk of a compliance breach and subsequent fines, penalties
- Minimising the risk of a major compliance breach resulting in brand damage
- Streamlined business procedures for better profitability, and lower costs
- Peace of mind, knowing how compliant your business is
- Reduction in the cost of legal reviews of documentation and templates
- Greater comfort for clients, knowing the practice is externally reviewed
- Potentially get onto the ‘low risk’ list with the regulator
- Potentially easier renewal of AFA authorisation (if applicable)
- Potentially lower PI premiums
AFA Compliance Decision Tree
If you are an AFA but unsure what you need, follow the process in this diagram to identify the compliance diagnostic service option that best matches your requirements (click the + icon to enlarge the diagram).
Compliance diagnostic service options
SystemsCheck® — An annual best practice and compliance review service for practices wanting to manage day-to-day compliance risk themselves
SystemsCheck® Lite — An annual review based on a reduced scope of service
SystemsMonitor® — A comprehensive best practice and compliance service for practices requiring regular risk management monitoring of their business
SystemsMonitor® Lite — Six monthly review based on a reduced scope of service
SystemsTrack® — The premium best practice and compliance service for practices requiring pro-active compliance risk management across their business
SystemsTrack® Lite — Six monthly review and quarterly electronic spot check based on a reduced scope of service
RFACheck® — An annual compliance review relating to RFA requirements
RFACheck® Lite — An annual compliance review for RFAs with a reduced scope of service
ABS Review — A one-off review of an Adviser Business Statement to ensure it meets requirements and adequately describes the adviser business
Disclosure Statement Review — A one-off review of an adviser Disclosure Statement(s)
AML/CFT Audit — Compulsory audit to meet AML/CFT requirements
Bespoke Review — A review package designed specifically for a network or QFE
Compliance diagnostic services feature comparison
| Service item | Systems Check® |
SystemsCheck Lite® |
Systems Monitor® |
Systems Track® |
|---|---|---|---|---|
| Annual adviser and business review | Y | Y | Y | Y |
| 6-monthly adviser and business review | Y | Y | ||
| Electronic spot checks x2 | Y | |||
| Production of risk management plan | Y | Y | Y | Y |
| Follow-up on risk management plan | Y | Y | Y | |
| Ongoing best practice guidelines & e-zine | Y | Y | Y | Y |
|
Best practice and compliance helpdesk up to 3 hours/year |
Y | Y | Y | |
| Access to Best Practice Manual updates (assuming manual purchased) | Y | Y | Y | Y |
| Best practice & compliance certification (if standards met) | Y | Y | Y | Y |
Compliance diagnostic services scope of reviews
| Service Item | Systems Check® | Systems Check® Lite | RFACheck® | RFACheck® Lite |
|---|---|---|---|---|
| Check FSPR for current registration | Y | Y | Y | Y |
| Check DRS | Y | Y | Y | Y |
| Check directors and shareholders against ABS, FSPR & Companies Register | Y | Y | ||
| Check contact details against FSPR & ABS | Y | Y | Y | Y |
| Check authorisation status is correct | Y | Y | ||
| Check disclosure obligations against all deemed advertisements | Y | Y | Y | Y |
| Unsolicited Electronic Messages Act 2007 | Y | Y | ||
| Check compliance with Standard Conditions of Authorisation for AFAs | Y | Y | ||
| Supervision of trainee advisers | Y | |||
| Broker’s conduct and trust accounting obligations | Y | Y | ||
| Meeting regulator’s notifications | Y | Y | ||
| Record keeping | Y | Y | ||
| FMA endorsement impression | Y | Y | Y | Y |
| Compliance with Health & Safety in Employment Act 1992 | Y | Y | ||
| Checking existence of employment agreements for compliance with Employment Relations Act 2000 | Y | Y | ||
| Compliance with Privacy Act 1993 | Y | Y | Y | Y |
| Check ABS accurately reflects AFA’s business arrangements | Y | Y | ||
| Correct Disclosure Statement(s) and correct use of these | Y | Y | Y | Y |
|
Client file and record review:
|
Y |
Y |
Y |
Y |
| Review of advice process | Y | Y | Y | Y |
| Minimum standards of competence, knowledge and skills | Y | Y | ||
| Minimum standards for continuing professional development training | Y | Y | ||
| Handling client money, property and information (but not full AML/CFT audit) | Y | Y | Y | Y |
| Check of processes for discretionary investment management service | Y | |||
| KiwiSaver brand usage | Y | Y | ||
| Adherence with Code of Professional Conduct for AFAs | Y | Y | ||
| Correct use of email, website and social media – including review | Y | Y | Y | Y |
| Professional Indemnity cover | Y | Y | ||
| Advice relating to asset protection and estate planning | Y | Y | ||
| Correct adherence with DRS processes | Y | Y | Y | Y |
| Marketing and branding processes | Y | Y | ||
| Adequacy of disclaimers | Y | Y | ||
| Check software licenses | Y | Y | ||
| Hardware/software security procedures | Y | Y | ||
| Adequacy of research and reporting tools | Y | Y | ||
| Virus scanning software | Y | Y | ||
| IT training | Y | Y | ||
| Backup procedures | Y | Y | ||
| Business continuity plan | Y | Y | ||
| Client ongoing care programme | Y | Y | ||
| Benchmarking | Y | Y | ||
| Adviser exit strategy | Y | Y | ||
| Business planning | Y | Y | ||
| Business processes | Y | Y | ||
| Review of Operations Manual | Y | Y | ||
| Review of relevant office procedures | Y | Y | ||
| Adherence with professional body membership and code of ethics | Y | Y | ||
| Conduct obligations of RFAs (misleading & deceptive conduct) | Y | Y |
Compliance diagnostic services retail pricing
Strategi recommends advisers new to compliance undertake and subscribe to the following in order to minimise the risk of a compliance breach within their business:
- SystemsReview®
- Best Practice course
- SystemsTrack®
- After 12 months reduce to SystemsMonitor® or SystemsCheck®
Where you are today
| Review | Price* | Per additional adviser |
|---|---|---|
| SystemsReview® | $1,697 | $1,197 |
Getting there
| Training and resources | Price* |
|---|---|
|
Best Practice course
|
$1,197 ($1,497 if own templates provided)
Additional $300 |
|
Best practice manual (standalone) - incl. guidance notes and updates |
$800 |
| Best practice webinars | $50 each |
| One-on-one training and support | $180 per hour |
Ongoing
| Service | Price* | Per additional adviser |
|---|---|---|
| SystemsCheck® | $1,870 | $1,280 |
| SystemsCheck® Lite | $1,625 | $985 |
| SystemsMonitor® | $2,980 | $1,980 |
| SystemsMonitor® Lite | $2,480 | $1,730 |
| SystemsTrack® | $3,980 | $2,880 |
| SystemsTrack® Lite | $3,480 | $2,380 |
| RFACheck® | $1,475 | $1,175 |
| RFACheck® Lite | $1,275 | $925 |
*Note all prices exclude GST and any associated travel expenses
Compliance diagnostic services wholesale pricing
The following wholesale prices for Strategi’s Compliance Diagnostic services are available to networks, product providers and QFEs and are exclusive of GST. Please contact us to determine whether you are eligible for these wholesale rates.
| Service item | Price* | Per additional adviser |
|---|---|---|
| SystemsCheck® | $1680 | $1080 |
| SystemsCheck® Lite | $1395 | $795 |
| SystemsMonitor® | $2880 | $1780 |
| SystemsMonitor® Lite | $2380 | $1530 |
| SystemsTrack® | $3680 | $2580 |
| SystemsTrack® Lite | $3230 | $2175 |
| RFACheck® | $1350 | $875 |
| RFACheck® Lite | $1195 | $675 |
| ABS Review | $450 | $450 |
| AFA primary and secondary diclosure review | $300 | $300 |
| AML/CFT | TBA | TBA |
| Best Practice manual and templates plus updates | $500 | N/A |
*Note: All prices exclude GST and any associated travel expenses
Compliance and best practice solutions
SystemsCritical®
When compliance is mission critical
If achieving compliance is critical to your business, either for AFA accreditation, in order to join a network, to merge or sell your business, or to simply minimise the risk of a significant compliance breach, Strategi’s SystemsCritical® is a holistic service that will identify breaches and recommend and manage solutions to guide you through to compliance accreditation.
SystemsCritical® is both an online project management programme and an in-depth review of your systems. Compliance and best practice training is then received via Strategi Institute. Ongoing compliance reviews are subsequently completed by Strategi.
SystemsCritical® — the journey
| Where you are today | Getting there | Ongoing |
|---|---|---|
|
|
|
SystemsReview®
Strategi’s SystemsReview® is a critical compliance review that can be used to identify the key areas of compliance risk relating to an adviser’s systems and processes against the legislation, regulations and Code of Professional Conduct.
SystemsReview® is a thorough, in-office review performed by Strategi staff experienced in best practice systems and processes.
As a result of Strategi’s SystemsReview®, advisers can subsequently identify their best practice training and resource requirements necessary to become compliant.
In addition, Strategi will identify the biggest compliance risk to the adviser’s business and provide assistance in its minimisation.
A business appraisal service
SystemsReview® can also be used by a potential buyer, or QFEs and networks, to evaluate the compliance risk of a seller or of a new member’s business.
Key legislation and regulations covered
SystemsReview® will assess the compliance status of your business against the following regulations and legislation:
- Code of Professional Conduct for Authorised Financial Advisers
- Financial Advisers Act 2008
- Financial Service Providers (Registration and Dispute Resolution) Act 2008
- Privacy Act 1993
- Fair Trading Act 1986
- Consumer Guarantees Act 1993
- Trustee Act 1956
- Financial Transactions Reporting Act 1996 / Anti-Money Laundering and Countering Financing of Terrorism Act 2009
- Other key regulation and legislation (as may apply)
SystemsBrand®
A solution for networks, product providers and QFEs
Well managed brands build understanding and loyalty from retail channels, and achieving compliance through your own branded systems and procedures helps networks become even stronger.
Guard your brand from the risks of a compliance breach
Strategi’s SystemsBrand® is a ground-up compliance management system that teaches your retailer channels to comply your way. SystemsBrand® creates best practice procedures that are tailored to your unique business rules. SystemsBrand® helps identify compliance breaches by retail channels and can assist them with project managing their way to compliance achievement.
A safeguard for adviser networks, product providers and QFEs
SystemsBrand® nurtures channel relationships in a safer, proactive rather than reactive manner. An essential tool for all networks exposed to compliance risk.
With SystemsBrand® you receive:
- A customised best practice procedure in accordance with your in-house systems and brand values.
- Onsite Best Practice training programmes using tailor-made learning tools.
- Assessment and compliance testing programmes with multi-level, confidential reporting structures to pre-agreed stakeholders.
- Timely resolution of compliance issues through both onsite reviews, recommendations and online project management programmes.
- Assistance to and review of your in-house compliance team.
Other benefits include:
- External assessment of compliance risks and procedures.
- Formalisation of (published) compliance intellectual property.
- Relationship and reputation management expertise.
Next steps
For further information on Strategi's compliance diagnostic services please contact Nikhil Ghate or David Greenslade. The above information is also available in PDF format. Contact us to request a copy.
