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South Africa has a long history of importing legislation and sometimes regulators take the time to adapt it to local conditions, but sometimes they do not. This has been a significant topic of discussion over the past two years as various pieces of legislation are being developed in order to improve the state, and the performance, of the financial services industry.
We all have that one friend, the friend who cruised through school not worrying too much about their studies because they knew that they would have a job at the family business when they left. To them, this business was their Roman Empire, a legacy that would stand the test of time. However, even the mighty Roman Empire saw its end.
It’s annual revision time and under the new legislation, you have to ask your client to sign an opt-in form that will allow you to continue to earn your annual fee for the next two years. And if he/she does not sign, you cannot take the fee. The reality is, though, that your client’s decision will not be based on his/her expectation of your service going forward, but on his/her experience of your service to date.
Whether we would like to accept it or not, there are a number of key changes occurring in the business of advice internationally. Discussions with Australian and American financial advisers confirm that these changes will have a major impact on the way that advisers look for clients, deliver their service and how they are remunerated for the work they do.
If you had to hazard a guess, when do you reckon the COFI Bill will be signed into law?