The new Financial Advisory and Intermediary Services (FAIS) Act is set to tighten compliance regulations as it endeavours to raise standards in the financial services industry. The Act, which requires that all financial advisors be licensed, also says that where two or more key people are in business, one must act as a compliance officer.
A study by JP Morgan for SA Life Assurance, says the Act "will result in additional ongoing costs" regarding compliance. And if companies hope to fulfil their compliance function efficiently and correctly, they`ll probably be looking at new software to help streamline the job.
"This may sound like a big, expensive headache," says JMR Software CEO Mike Richards, "but JMR Software`s ComplianceExtra offers a total, cost-effective solution that`s tailor-made to companies` needs. With one click of a button, you can draw an up-to-date report for compliance purposes."
ComplianceExtra was developed by Sapiens International and specifically addresses the FAIS requirements. Embracing all the activities in an organisation related to compliance, Richards says: "ComplianceExtra collects and analyses the data to allow an organisation to monitor, manage and control all activities which are subject to compliance regulations. It also anticipates where shortfalls may occur."
Richards says one of the major benefits of ComplianceExtra is that it can be customised to integrate with each organisation`s specific business processes and technical requirements. "ComplianceExtra`s flexible design and structure enable it to adapt as the organisation and its compliance needs evolve."
Another benefit for any company facing the compliance challenge is ComplianceExtra`s cost-effectiveness. Richards says: "The solution reduces the cost of maintaining compliancy by automating many manual, paper-based procedures."
It also allows for the control and management of multiple data sources; it has powerful reporting capabilities and is readily Web-enabled for multi-branch organisations. Richards says the system also gives an early warning in the case of possible compliance breaches.
The benefits of ComplianceExtra`s comprehensive solution are:
* Control and management of multiple data sources - frequently drawing source data from a wide variety of applications.
* A proven, tried and tested system - ComplianceExtra has been developed together with customers and experts, and has received excellent reviews.
* Interpretation of data into useful information - performing automatic calculations, manipulations and summaries to add meaning to data.
* Reduced cost of maintaining compliance - by automation of many manual, paper-based processes and procedures.
* Early warning for compliance breaches - applies interpretative rules to sales activity and performance; identifies trends and gives notice of potential future breaches of compliance regulations.
* Expert advice and consultancy - for developing and implementing compliance and management control procedures.
* Readily Web-enabled for multi-branch organisations - it supports the latest Internet technology for enterprise-wide communication and information distribution.
* Powerful reporting capability - which can be customised to conform to each organisation`s requirements.
The Financial Services Board is about to start licensing financial advisors and intermediaries, and it`s estimated that the FAIS Act will come into effect within the first few months of 2004. Richards says the Act has strict stipulations regarding compliance, but "with ComplianceExtra, any organisation can quickly and easily ensure that it`s adhering to all the regulations".
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Established in 1987, JMR Software specialises in delivering turnkey custom-developed applications for mainframe, client server, and Internet-based platforms, and has made major contributions in a range of industries, particularly banking and insurance. The company has over 120 employees, including a large contractor base, which is deployed both in SA and the UK.
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