Services For Providers Who
Do Not
Have A Compliance Officer

The key Individual who is responsible for the compliance function is required to:

• Ensure that a compliance function exists as part of the risk management framework of the business.
   
• Manage and control the compliance function.
   
• Exercise the compliance function with such diligence, care and degree of competency as may reasonably be expected from a person responsible for such function.
   

Any person who contravenes or fails to comply with this requirement is guilty of an offence and liable on conviction to a fine not exceeding R500 000 or imprisonment for a period not exceeding five years, or to both such fine and imprisonment.

For the greater part, the regulatory procedures required are quite straightforward and once integrated into the business practice, they become routine. There is no longer any mystery about these procedures once they are explained in simple, usable terms. We truly believe that every committed financial services provider is able to implement all the required procedures and make them a totally routine function.

Most importantly, the process of monitoring compliance – an indication of the degree of diligence, care and competency being exercised – now becomes routine and can be delegated.

We will show you how.

• We will provide every member with a Procedures Manual that sets out every procedure required.
   
  We will tell you What to Do in all important instances and provide the procedures you need. The Manual is written in user-friendly English with simple instructions and templates.
   
• We provide a concise and complete Checklist of all procedures needed so you can have a bird’s eye view of the entire function. This Checklist will make it easy and convenient to get a quick overview of all that is required and to see if you have any outstanding tasks to complete.
   
• We provide complete and concise procedures for monitoring compliance (see below)

We also provide telephonic advice where required.

• Monitoring compliance is made possible by a series of online questionnaires that cover every aspect of compliance.
   
  You will be asked about each and every aspect of compliance as it applies to your business. Each month a different aspect of compliance will be tested. By the end of a compliance period every aspect of compliance – as it affects your business – will have been examined.
    
  Click here for an example of the questions asked.
   
• Once each questionnaire is completed and submitted, our system will generate a detailed report.
   
  The report will instruct you on what to do in any matter where non-compliance is indicated. Our report will tell you exactly what to do to become completely compliant. This part of the system is not designed to act as a policeman and simply tell you that you have not complied. The Report explains the problem and tells you what to do about the non-compliant issue.
   
  In other words, the system will tell you where you are not compliant – but, more importantly, will tell you exactly what is required, why it is required and how to comply.
   
  Click here for an example of this report. 
  

Condition 1 of your Licence requires you to notify the Registrar of any changes in any business details. The annual Compliance Report asks whether you have actual procedures to ensure that this condition is met.

• Reminders: CMS will automatically email a checklist of possible changes to you every fourteen days.
   
  If there have been no changes during the period the email may, of course, simply be deleted.
   
• “How To”: If any changes have taken place, details must be sent to the Registrar in terms of condition 1 of the licence.
   
  The requirements for the various changes are many and varied. Some are easy, others complex and include the payment of fees. Our system will tell you exactly what to do. We even provide draft correspondence to the registrar so you can delegate this kind of activity to a responsible member of staff if necessary.
   
• Guide: You have access to a Guide to Profile Changes that explains each change in detail.
   
  If you need to make a change and have consulted our Guide on how to do it, then you can tell the Guide to email the information to you – including any FSP forms that may be needed. This saves you the hassle of having to remember what to do.
   
• Simplified: We take the uncertainty out of this procedure and make it as simple and straightforward as possible.

• Complaints, if handled properly and promptly, present far less of a problem than is generally thought. We will assist you to handle any complaint in a manner that will ensure the best possible outcome for you and for the client.
  
  We will provide the initial advice by telephone or email and if any further support is needed we will negotiate the fee and the extent of our involvement. Remember, not every complaint from a client is necessarily a complaint as defined in the Act. We will make sure you know exactly what your rights are and how to deal with the matter.

• Each year we will send you a detailed Compliance Report Guide. The Guide explains each and every question in the Compliance Report - in plain English
   
  In addition, members may email queries relating to the Compliance Report to us and these will be dealt with individually and in detail.

• The system provides a comprehensive “how-to” section.
   
  This section covers every aspect of compliance and is divided into logical and easy to follow units. We have made the language as user-friendly as possible and will update the manual regularly to ensure that it is current and deals with important issues in a useful and practical manner. Any section of this Guide may be viewed online or downloaded in Adobe PDF format.

Members’ comments are welcome to help improve this section of the system.

You will have access to a growing list of useful templates. At present these include:

• Disclosure Templates
   
• Compliance Checklist
   
• Client Mandate
   
• Client Checklist
   
• Client Advice Record
   
• Complaints Policy
   
• FICA Rules
   

These templates can be personalised to ensure that all the statutory disclosures comply fully with the requirements of the Act and the Code of Conduct.

• all relevant legislation – current and complete
   
• all Board Notices
   
• all FSP forms
   
• all Ombud Rulings
   
• updates on important compliance issues
   

• Discuss your concerns with other compliance officers.
   
  You will be entitled to join and participate in the Members’ Forum where topical issues are discussed and problems analysed. The Forum is moderated by a qualified external compliance officer and you can be sure that the answers will be correct and legally valid. The issues discussed will be indexed and made available for future reference.

• Just who should be registered as representatives?
   
• Complaints – what they are and how to handle them
   
• Conflicts of Interest and how to avoid them
   
• Is a Needs Analysis really required?
   
• Does your client understand everything you tell him?
   
• NQF Credits demystified – and what happens if you haven’t got enough . . .
   
• Do you enjoy any exemptions from FICA?
   
• Filing financial returns with the registrar
   
• The golden rule – acting in a client’s best interest
   

You will be able to read and pass on any of these articles and to make any comment you may think appropriate.

You will be able to say with total confidence that:

• You have established a compliance function as part of the risk management framework of your business.
   
• You manage and control the compliance function.
   
• You exercise the compliance function with diligence, care and competency.
   

Read enough? Click here to join now.