Joleen John
Laurence Muller
From its inception during a time of uncertainty to becoming a cornerstone of support for financial service providers (FSPs), October marks Masthead’s 20th year of championing excellence in compliance and business development. To commemorate this milestone, we spoke with past and present staff to gain their insights into the company’s history, evolution and future direction.
Over the past two decades, Masthead not only adapted to the evolving landscape of the financial advice industry – it actively shaped it. By offering guidance, support and innovative solutions, the company has empowered advisors, especially independent financial advisors (IFAs), to navigate change with confidence.
“Our success lies in our adaptability,” Managing Director (MD) of the Masthead Group Joleen John says of the company’s 20th anniversary. “Our core mission remains unchanged – we’re dedicated to supporting IFAs. However, as the regulatory environment and the financial industry have evolved, we’ve continually updated our services to meet our clients’ changing needs.”
Joleen further reflects on the company’s origins: “Masthead was founded during a time of uncertainty for FSPs, especially IFAs. Many feared that IFAs would have to close their doors due to impending regulatory changes. We were established to help them navigate those challenges and ensure their businesses could thrive.
“Since then, as the industry continues to undergo various regulatory updates, we have stayed ahead by anticipating these shifts, closely monitoring regulations and adapting our systems to guide our clients through these evolving times.”
Masthead’s start and evolution
Masthead was founded in response to the Financial Advisory and Intermediary Services (FAIS) Act of 2002, which came into effect in 2004. This Act imposed strict licensing requirements and a code of conduct on FSPs, causing serious concerns that many smaller IFAs wouldn’t be able to comply with the proposed regulatory requirements. Recognising the vital role IFAs play in offering clients tailored financial products and services, Old Mutual established Masthead to provide the support needed to navigate this complex new environment.
Peter Dempsey, Masthead’s MD from 2005 until 2008, recalls: “In the late 1990s, there was a global push to regulate and professionalise the financial advice industry. Many of the proposed changes were quite drastic, raising concerns that brokers wouldn’t survive the transition. Masthead was created to guide IFAs through this challenging regulatory landscape and help their businesses thrive.”
Ian Middleton, who served as MD from 2008 until 2022, reflects on the company's evolution: “Market conduct regulation in the financial services sector was new territory, not just for us but for the regulators as well. We were all on a steep learning curve. Despite these challenges, we adapted to evolving regulations and market needs, gradually expanding our services and client base.”
Peter adds: “Masthead has always been proactive in identifying opportunities while staying true to our core principle: helping IFAs thrive, regardless of the regulatory and industry changes they’ve faced – and there have been many.”
As regulations evolved, Masthead expanded its services beyond FAIS compliance to include compliance with other regulatory requirements such as the Financial Intelligence Centre Act (FICA), the Protection of Personal Information Act (POPIA), and the National Credit Act (NCA), amongst others. The company also began serving corporate FSPs and other business sectors needing compliance support.
Today, Masthead offers a comprehensive suite of compliance, practice management and business development services, empowering financial advisors and others to succeed in a constantly changing landscape.
Despite this growth, the company’s dedication to IFAs has remained central. “Masthead has long served as the voice of IFAs,” explains Dr Rufaro Nyakatawa, Chair of the Masthead Board. “With over 5 500 IFA members in the Masthead Financial Advisor Association, we have established ourselves as a strong advocate in the market. Through the Association, IFAs can share their concerns about upcoming legislation or industry developments. We, in turn, use our industry reputation and relationships with regulators to bring these issues to the forefront, advocating for changes on their behalf when regulations have unintended consequences for IFAs.”
Looking Ahead
Just as in 2004, the financial sector is now facing a new wave of uncertainty. Upcoming regulatory updates, such as the Conduct of Financial Institutions (COFI) Act and the Omni-CBR (Conduct of Business Return), alongside economic challenges, rapid advancements in financial technology and artificial intelligence, and the impact of climate change, are creating a complex landscape for FSPs.
However, Masthead remains steadfast in its commitment to guiding clients through these changes, just as it has for the past 20 years. “From the beginning, we’ve been proactive in anticipating shifts in the industry, whether they come from regulatory changes or broader socio-economic factors,” says Joleen. “Today is no different. We are investing in our systems, processes and staff to ensure that our clients can continue to operate sustainably and confidently, no matter what changes lie ahead.”
Laurence Muller, Masthead's Financial Director and Chief Operating Officer, emphasises the role of technology in the company’s future. “We’ve already begun investing heavily in technology and exploring how it can help lighten the compliance load for our clients. This aligns with the direction regulators are taking – using technology to collect data and demonstrate customer outcomes. Our goal is to stay ahead of this curve, finding innovative ways to support our clients in adapting to these shifts.”
Masthead’s proactive approach to change remains central to its mission. “With every wave of regulation, whether it was FAIS in the early 2000s or now COFI, we’ve stayed ahead of the curve,” Laurence explains. ‘We help our clients implement these changes systematically and practically, preparing them well in advance for what’s to come.”
As Masthead looks to the future, its guiding principle remains unchanged: to be the advisor’s advisor. “Our focus has always been on providing peace of mind to our clients,” Joleen adds. “By staying ahead of industry shifts, we enable them to navigate change with confidence. We have always aimed to empower advisors to build sustainable businesses, and we will continue to do so.”
While the path ahead may present challenges, Masthead's dedication to its clients’ success is unwavering. With a firm commitment to innovation, ongoing investment in technology and staff, and a deep understanding of the evolving regulatory environment, Masthead stands ready to guide their clients through the next 20 years. As Joleen puts it: “With Masthead as your partner, you have nothing to worry about – we’ve got you covered.”
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