Promoting the value of good financial advice

The FIA was established in January 2008 when the South African Financial Services Intermediaries Association (SAFSIA) joined the Independent Broker Council (IBC). Six months later the Life Underwriters Association of SA (LUASA) merged into the structure to establish the de facto voice for intermediated financial services in the country.

"The merger was the culmination of our dream for a unified voice to represent intermediary interests to all financial services stakeholders,” says Justus van Pletzen, CEO of the FIA. "Today we protect, promote and further the common interests of 2100 main members who in turn represent more than 13000 intermediaries”.

The primary function of the FIA is to represent its members’ interests to industry stakeholders. It communicates relevant information to members, industry stakeholders and the broader public as well as furthering professionalism in the broader financial services industry and promoting the value of good financial advice.

Professionalism is encouraged via the FIA Code of Conduct that sets standards for members when interacting with clients. The Code requires that FIA members eat, sleep and drink the culture prescribed in FAIS and the pending TCF legislation. "In February 2013 we take another important step when we introduce a Business Practice Manual to assist our members in maximising the returns in their practices while remaining fully compliant,” adds Van Pletzen.

"We have significant influence across financial disciplines such as Short Term, Healthcare and Employee Benefits, with estimates that more than 80% of the intermediated business placed in these disciplines stems from FIA members,” he says. This explains why the FIA is one of three member representative bodies that are widely consulted by the FSB and National Treasury on a range of financial services issues.

The FIA is hard at work to address the perception that it only represents Short Term brokers’ interests. "We actually have four executive committees wherein equal attention is given to each of the financial services disciplines,” explains Van Pletzen. "We strive to represent the interests of intermediaries whether they focus on Employee Benefits, Financial Planning (including Life, Healthcare or Short Term”.

Each of these committees has the expertise to guide FIA members through difficult or extremely technical financial services issues. They will also have their work cut out as they engage with the regulators on the range of issues likely to dominate debate through 2013. Intermediary remuneration, demarcation, National Health Insurance (NHI) and retirement reform are just some of the major talking points on the agenda this year.

Cleaning up the financial services industry is also among the FIA’s 2013 priorities. The recent FIA Watchdog initiative shows the organisation’s commitment to tackling the "cowboys” in the financial advice and product provider space.

"The FIA Watchdog initiative demonstrates to the regulators our willingness to be proactive in helping to police the industry,” says Van Pletzen. "Going forward we plan to tweak our internal processes and capacity to get the maximum benefit from the initiative for both our members and the broader public”.

Aside from the benefits already mentioned the FIA assists and guides its members through the maze of regulatory requirements that they must comply with. "We utilise our communication channels and workshops to ensure that members understand their obligations in terms of the relevant legislation,” he says. "We then use these platforms to get feedback from our members with regards to their needs and to make sure that these are accommodated”.

The FIA looks after its members by consulting broadly across its member base. "Our position is informed from the ground up – through our branch structures – and on to our executive committees and board”, concludes Van Pletzen.