How TCF can benefit you, IFAs hear at Masthead MasterClass

Ignatius Jacobs

“The contribution Independent Financial Advisors (IFAs) make to the financial services industry and their clients is of vital importance.

Because of the value they bring to the table, the industry simply cannot afford to lose them,” said Ignatius Jacobs, Regional Manager of Masthead in KwaZulu-Natal, at the final Masthead MasterClass of the year’.

However, IFAs currently face several uphill battles, he acknowledged at the MasterClass, which was titled ‘The Value of Independence – Treating Customers Fairly (TCF)’. The event took place at the Kingsmead Cricket Stadium in Durban on 25 October 2023.

“The growing pressure placed on IFAs by the ever-evolving regulatory landscape makes it increasingly difficult for them to run profitable, sustainable businesses. In addition to legislatives changes, economic factors and issues surrounding succession have compounded these challenges. And there is a trend where larger corporates are approaching IFAs, urging them to give up their independence and merge with them,” said Jacobs.

Helping IFAs to stay independent
The speakers and topics for the MasterClass were selected to address the challenges confronting IFAs and provide them with the skills and strategies to confront these challenges head-on. A big focus at the event was on how IFAs can use legislation to their benefit.

“We’ve noticed that firms that wholeheartedly embraced compliance, especially TCF Outcomes, manage to thrive despite the sluggish economy,” Jacobs said. “Rather than seeking creative ways to sidestep regulations, IFAs can find creative ways to make legislation work for them and their businesses.”

Speakers
The event opened with a welcoming address by a Masthead Regional Compliance Officer, Kimera Singh. Joleen John, Group MD at Masthead, then presented advice on how IFAs can filter out the unnecessary ‘noise’ around the shifting legislative landscape and use upcoming regulations to their advantage.

Johann Els, Old Mutual Group Economist, discussed the potential for growth in the South African economy. He also compared the South African economy with that of China and the United States.

Charene Nortier, Manager of Financial Advisors and Intermediaries at the Financial Sector Conduct Authority (FSCA), shed light on the current risk areas that have emerged from FSCA’s onsite audits of FSPs over the past year. She gave attendees insight into common compliance issues experienced in the industry. She also addressed how proactive compliance with legislation can cultivate resilient, future-ready businesses.

In his first-ever address at a Masthead MasterClass, Advocate John Simpson, the FAIS Ombud, presented a talk titled ‘Lessons from the Ombud – Treating Customers Fairly’. He elaborated on the common pitfalls in the advisory environment that often lead to client complaints. Furthermore, he emphasised how advisors can significantly reduce their risk of client complaints by adhering to TCF principles.

Anri Dippenaar, Masthead’s Head of Compliance, explored how Masthead can assist IFAs in navigating risks in her presentation, ‘FAIS/FICA Audits: Risks You Need to be Aware Of’. Dippenaar also provided insights into what advisors can anticipate in terms of regulatory updates related to FAIS, NCR, POPI, CMS and COFI.

To conclude the event, Jacobs delved into the value of independent advice with his presentation, ‘Your Future-Fit Business – The Value of Being Independent’. He shared practical tips on how IFAs can leverage TCF and compliance to their advantage to foster sustainable businesses that continue to serve their owners well into retirement.

The event was a unique opportunity for IFAs to engage with their peers, regulatory authorities, industry experts, product providers and Masthead staff. “Our company is committed to assisting IFAs in achieving compliance, sustaining their businesses and, most importantly, ensuring their profitability.” Said Jacobs. “Our purpose is to empower our clients to enhance the value of their businesses, and the MasterClass was an extension of that commitment.”