ADVISORY COUNCIL FIA STRATEGIC PLAN FEEDBACK 14 NOVEMBER 2011

THE THREE STRATEGIC PILLARS

MEMBER PRIORITIES

REPRESENTATION THE STRATEGY To advance and protect the collective interests of intermediaries in Southern Africa. THE OBJECTIVES To further develop and improve our influence with: External: Regulatory environment – FSB – SARS – National Treasury (TWIN PEAKS) – Department of Health – CMS

REPRESENTATION Industry: – SAIA – ASISA – BBF – WFII – Namibia; Botswana, Zimbabwe, Mozambique and other African Countries. – CEO’S of all Product Suppliers – Social Welfare

REPRESENTATION THE ACTIONS – To allocate responsibility for each entity. – To compile a directory of all key individuals to be seen. – To arrange formal meetings on a regular basis. – To play a leading role in enhancing the financial services landscape

PROFESSIONALISM THE STRATEGY To promote and advance the professionalism of the intermediary. Education and Development To create a sustainable, well qualified and professional body of intermediaries. The research results, analyses and recommendations of Bluestream Research reaffirm similar results of a previous research project, but the significance of present and future regulatory examinations/CPD requirements with the uncertainty and concerns these raise for members, compel the FIA to make education and development the number one priority.

Education and Development (continued) The recommendation is that the present Education/Development sub-committee be elevated to Exco status, thereby ensuring prominence of the portfolio at Board level and throughout the structures. Delivery to members at branch level needs to be cultivated and structured. This requires the appointment of fulltime staff members, who can drive and oversee training initiatives. As a spin off, these officers can be utilized in membership sales drives and arranging/facilitating regional conferences. PROFESSIONALISM

THE OBJECTIVES – Promote and support ethical conduct – Promote adherence to our Code of Conduct. (Annexure 1) – To create a platform for and a culture of learning and development within the FIA membership. – To collaborate with all stakeholders. PROFESSIONALISM

THE ACTIONS – Reviewing the following key issues: – To assess the current menu of regulatory qualifications. – To assess the progress of FIA membership with regards to the abovementioned and to draw a gap analysis. – To review, with all stakeholders, the industry platforms available for training. – To establish and influence future CPD requirements. – Creating an Electronic information Centre (library – ongoing project) PROFESSIONALISM

THE FIA CODE OF CONDUCT OBJECTIVE The FIA Code of conduct aims to set a professional standard of client interaction in the financial services industry. This code combines the values and processes that will guide financial service providers and their representatives to interact with clients professionally.

THE FIA CODE OF CONDUCT Preamble FIA members will at all times interact with clients in the following manner: – honestly, – with integrity, – fairly, – with due skill, – care, – diligence, – in the interests of clients, and to enhance the integrity of the financial services industry.

THE FIA CODE OF CONDUCT FIA members will at all times employ the resources, procedures and appropriate technological systems that can reasonably be expected to render continuous quality service to clients. FIA members will at all times act within the scope and spirit of the Acts of Parliament governing the specific business/product segment.

THE FIA CODE OF CONDUCT The FIA client interaction process Step 1 A comprehensive and professional introduction to client – FIA members will disclose in a comprehensive and professional manner to any prospective client who they are, who they represent and what services they are licenced or mandated to render.

THE FIA CODE OF CONDUCT The FIA client interaction process Step 2 Gather client information – FIA members will, before making any recommendation of a financial nature to any client, obtain appropriate client information and seek to understand the client’s financial position, needs and objectives. – In cases where clients request or instruct providers to render a particular financial service, FIA members will obtain appropriate client information to ensure that the request or instruction is implemented correctly.

THE FIA CODE OF CONDUCT The FIA client interaction process Step 3 Enter into a service agreement with the client – FIA members will, on acceptance of a client request or instruction to offer any recommendation of a financial nature to the client, enter into a recorded client request, instruction or service agreement.

THE FIA CODE OF CONDUCT The FIA client interaction process Step 4 Conduct an analysis and prepare a client proposal – FIA members will, before making any recommendation of a financial nature to any client, conduct an analysis and prepare a proposal or quotation that is appropriate in the circumstances and aimed at addressing the client’s needs or objectives whilst taking into account the client’s risk profile.

THE FIA CODE OF CONDUCT The FIA client interaction process Step 5 Present the proposal to the client – FIA members will, when presenting a proposal or quotation to a client, take reasonable steps to ensure that the client understands it and that he/she is in a position to make an informed decision.

THE FIA CODE OF CONDUCT The FIA client interaction process Step 6 Enter into a Financial Service agreement with the client – FIA members will, on acceptance by the client of any financial advice and/or intermediary service proposal, enter into a recorded contract with the client and ensure that the client is provided with a copy of such a contract.

THE FIA CODE OF CONDUCT The FIA client interaction process Step 7 Implement the agreement – FIA members will, on acceptance of the financial service proposal, submit the product application/client instruction to the product supplier for acceptance and fulfilment of the contractual obligations. FIA members will ensure timeous confirmation of such instruction and ensure that the client is provided with written contractual documentation.

THE FIA CODE OF CONDUCT The FIA client interaction process Step 8 Render continuous financial services to the client – FIA members will continue to render ongoing advice and intermediary services in accordance with any contractual arrangement between the parties and ensure that all enquiries, instructions or complaints are handled timeously and in a fair and professional manner. In the event that an agreement is terminated between a provider and client, FIA members will record it in a fair and professional manner.

COMMUNICATIONS THE STRATEGY To create a well informed membership base. To position the FIA member as a preferred intermediary to the consumer. THE OBJECTIVES – To ensure that all members are well informed as to the value proposition offered by the FIA. – To keep abreast of and communicate to members all industry developments. – To aggressively promote the value of intermediation to the greater public.

COMMUNICATIONS THE OBJECTIVES (continued) – To play an active role in securing industry sustainability. – To assist with the role of a marketing plan and ensure membership growth. – To capitalize on FIA awards, the major industry event. – To communicate the structures to membership.

COMMUNICATIONS THE ACTIONS – To review the current communications structure and assess the viability of outsourcing. – To include modern day communication trends e.g. Social media.

The strength of this organisation lies in the numbers and the numbers are represented in the branches EMPOWERMENT

PA SECRETARIATMEMBERSHIP LEGAL/ COMPLIANCE SUPPORT ADMIN/ HR REGIONAL COORDINATORS FINANCE / IT NATIONAL TECH MANAGER TRAINING/ EDUCATION BRANCHES MEMBERSHIP ST EXCO COMMUNICATIONS ADVISORY COUNCIL/ NATIONAL CONGRESS EXTERNALINTERNAL HC EXCO EB EXCO T&E EXCO BOD EXCO + SUBCOMS HR/OPERATIONAL/A UDIT CEO FPC EXCO CENTRE OF INFORMATION ORGANOGRAM

REGIONAL COORDINATORS Their primary responsibilities would be: – To establish an educational functionality in each branch. – To act as the communication conduit to and from branches. – To organize/facilitate regional conferences. – To actively canvass new members.

MEMBERSHIP EXCO With the recommended establishment of an Education Executive Committee and a singular focus on membership expansion there is not much more other than peripheral ad hoc needs to be dealt with. Our recommendation therefore is that the Membership Committee be phased out - March 2012.

1 2 3 P T B SC K NC 7 Branches PE 7 Branches NFS M EL MID D NC P NW WR ER H L K PR J PL V 11 Branches 1.Northern Cape 2.Karoo 3.Tygerberg 4.Boland 5.Peninsula 6.Southern Cape 7.PE 1.Bloemfontein 2.North Free State 3.Maluti 4.Midlands 5.Eastern Londen 6.North Coast 7.Durban 1.Polokwane 2.Jakaranda 3.North West 4.West Rand 5.Protea 6.Vaal Triangle 7.Platinum 8.East Rand 9.Kosmos 10.Highveld 11.Lowveld B REGIONS

REGIONAL COORDINATOR FIA Regional Coordinator – Reporting to CEO