Our approach to this is that “Compliance should fit into the business process”. Current processes don’t need to be changed radically(unless they are NOT compliant in any way at all). We take a pragmatic approach and certainly don’t say you should chuck out the baby with the bath water.
This is a full 50 + point check of the advice processes that provides a comprehensive report that identifies any potential compliance issues in relation to the the Financial Markets Conduct (amended) Act and the Code. We recommend an adviser repeats this assessment regularly when any significant change in their business occurs or when the law, regulations, FMA guidance or the code of conduct changes.
What we DO
A Telephone call/Skype or Go TO Meeting is conducted with advisers or advice practices to discuss their Advice Process. As part of the Review :
we establish how the required evidence or documentation is gathered and retained.
We review various documents and completed forms and the contents of three randomly selected client files.
We then start compiling an Advice Process Report, have the report reviewed by the adviser.
Provide the final report to the Practice.
The Advice Process Review checks that the advice process meets an acceptable standard by checking evidence in a minimum of 3 client files. The contents of the files should confirm that an acceptable process has been followed and that all documentation is present. The “Contractor” uses the Code Standards from the “Financial Advisers Code of Conduct”, guidance as published by the FMA and legal obligations in the Act to test the process and the Client Files.
What we DON’T do.
Our report makes no judgement as to whether the Advice Recommendations are appropriate. We do expect (as does the code) reasonable explanations as to why the recommendations are suitable.
We don’t report any outcomes to third parties without your express permission
The written report will contain suggested changes to documentation recording, advice processes, and contents of key documents for the “Client” to implement. It is entirely up to the “Client” as to what they do choose to implement or change.