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In the article Avoiding the Problems that RDR will Cause the Independent Adviser, published by fanews.co.za on 9 June 2014, Michael Blain – then MD of Altrisk – shared his views on the likely outcomes and consequences of the Retail Distribution Review (RDR), with specific reference to remuneration models for independent financial advisers (IFAs).
The insurance industry did not fair very well in the recent 2014 Edelman Trust Barometer, which is an annual survey that measures trust across various sectors. Overall, the industry performs very well in that good financial advice is provided, the products are solid, the claims are processed and paid timeously and customer service is excellent.
Treating Customers Fairly (TCF) appears to have been difficult for insurers to implement as it marks the introduction of principle-based regulation by the Financial Services Board (FSB). No formal law or rules have been passed and no start date has formally been declared, says Danny Joffe, Senior Legal Adviser at Hollard Broker Markets.
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.
If I were tasked with taking my firm’s customer experience (CX) to the next level, I would: