David Greenslade of Strategi leads an industry debate on assessing realistic competency standards for qualifying financial adviser status.
Strategi ‘Best Practices’ is a proven process designed to ensure adviser practices understand, embrace and implement the necessary disciplines and processes to comply with the impending regulations plus grow business profitability and capital value.
Benefits of implementing best practice
While a regulatory environment will demand a minimum level of compliance, the benefits of embracing best practices standards are huge. To name just a few:
- High productivity in the advisory office
- Documentation of systems and procedures to minimize operational risk
- Implementation of robust CRM and IT systems
- Low risk of legal professional misconduct claims and lower professional indemnity insurance cost
- High referral rate of new clients reducing marketing and administration costs
- The Best Practice standards involve stringent checks plus methodologies, guidelines, templates and systems designed to enhance the quality and professionalism of the advice provided to clients.
A new regulatory environment should be viewed as an opportunity to integrate best practices across your business and become a leading professional financial advisory company.
Why start now?
Implementation of Best Practice processes takes time and can cause disruption. Past experience indicates that implementing processes gradually over a 12-14 month period ultimately reduces costs, minimises stress and improves the overall quality and understanding of the process.
How can Strategi help?
Strategi has conducted best practice training and reviews for selected financial planning companies since 2002. Strategi’s best practice standards are well regarded as the highest best practice standards in New Zealand and are of international quality.
Strategi has developed a dynamic best practices service proposition, with the level of services commensurate with an adviser’s requirements and expectations. The most appropriate of the three best practice service levels for a particular adviser or company will depend on the size and complexity of the business, but will likely cover the following elements as a minimum:
- Six monthly or annual compliance reviews and follow ups
- Quarterly electronic spot checks of client files
- Development and implementation of policies to ensure compliance (quality checking, checking documentation, etc)
- Processes for dealing with compliance breaches and issues and taking steps to ensure mistakes are not repeated.
- Up-to-date manuals and templates
- Review of Adviser Business Statement
If you are interested in Strategi’s best practice services for your business, please contact Strategi Best Practices or phone 09 442 4894.
