Periscope Up

Business forecasts normally appear towards the end of the year, together with reviews of the past year. The financial services industry, and particularly financial advisors, would be well advised to conduct this exercise now.

For the past eight years, regulatory obligations played a significant role in occupying the minds of advisors. This often led to them taking their eye off the ball as they scrambled to keep up with new and changing requirements.

The latest CIB Broker Confidence Index (BCI), which measures the confidence levels of South Africa’s short-term insurance brokers, shows, in general, a decline in broker confidence. The survey covered a wide array of indexes measured. Please click here to download an article published in the latest issue of COVERConnect.

An interesting shift is noted in terms of compliance with regulatory requirements. Although it is still the biggest concern at 39.5%, it shows a decline of nearly 8% from the previous survey. There can be little doubt that successful completion of the regulatory examinations played a big role in this shift.

The silence from Pretoria regarding the roll-out of the level 2 regulatory exams, is actually a blessing in disguise. (Or, as a friend of my daughter thought, a blessing in the skies.) It now provides the opportunity to focus on your business, and to regain lost ground.

Like a submarine, you can use your periscope to identify both threats and opportunities, and implement timely measures to address both. In the article below, we discuss an important tool in your risk management arsenal which some people regard as just another schlep in the compliance maze. Viewed differently, it could pay handsome dividends in terms of managing the risk to your business.

We expressed concern in the past that one could comply with all the legislative requirements, yet not one iota of benefit would flow to the client.

With the lull in RE obligations, and aided by your newly acquired knowledge of the regulations, now is perhaps an opportune time to systematically review your documentation to make sure it works for you (and your client). If you have to do it, then make it work for you.

Is it not amazing how a changed perception can help the medicine go down in a most delightful way?

Well, almost!

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