The review starts at $2800 plus GST for a business and one adviser. Each additional adviser is only $800 for the first few then reduces to only $500 per adviser or less (depending upon volume and business structure).

Our research indicates five ways these reviews save you money:

1. Reduce cost of PI insurance: Too many advisers are simply agreeing to pay the exponentially higher PI cover quotes they are receiving. In the most extreme situations, we have seen increases of 400%. A compliant business with good processes and documentation should be a lower risk and not incur the massive PI increases we have seen. The compliance assurance report (assuming it demonstrates a compliant business) can be used to show the PI insurers why the PI premiums should not be increased.
2. Negotiate your fees and remuneration: Compliance is a cost to any business. Obtaining a good compliance assurance review report can assist negotiations with:
   • Authorised bodies and the licensed FAP: If you can demonstrate your authorised body is highly compliant, then you should be able to negotiate paying a lower fee to the licensed FAP.
   • Financial advisers: You have a greater chance of negotiating a salary increase or bonus if you can demonstrate via independent compliance assurance, that your advice is compliant and demonstrates good conduct. Encourage your FAP to get client file reviews conducted and put up your hand to be reviewed.
3. Reduces complaints: Most complaints are resolved quickly but some take weeks of your time plus a monetary payment to resolve. Even worse, it may end up with your Dispute Resolution Service or in court and this can lead to even greater direct and indirect costs. Getting your business compliant as quickly as possible and operating at a level which demonstrates good conduct, is a proven way to reduce complaints.
4. Reduces future regulatory action: Strategi is regularly engaged to assist a business once it is in trouble with the FMA. In every case, we find that if the business had spent a small sum of money becoming compliant in the first place and undertaking regular compliance assurance reviews, then they would have likely avoided the regulatory action they are now dealing with. It’s common to see the cost (FAP time, lawyers and Strategi time) of fixing a regulatory issue is 4-5 times greater than the cost of having had regular compliance assurance reviews over the past five years.
5. Reduces rework: Rework can be a massive hidden cost with any business. The compliance assurance reviews identify where processes and training can be improved resulting in less mistakes and less rework. A recent review of a large FAP showed that the cost of the compliance assurance review could be recovered in just one month through reducing rework by 50% – and this was before including any of the other cost reductions. 

Getting a compliance assurance review underway is as simple as contacting us now.