Master the art of record keeping

Master the art of record keeping

30 MAY 2024

Inadequate record keeping is one of the most prevalent compliance issues we see.

Master the art of record keeping

Standard Condition 1 of FAP Standard Conditions outlines what a Financial Advice Provider (FAP) needs to do. In simple terms, it means you should keep good records that you can easily show to the Financial Markets Authority (FMA) within 10 working days if they ask for them.

Your records must provide enough details to show how your business and all those offering financial advice to retail clients followed the rules in the FMC Act, FMC Regulations, and the Code of Professional Conduct for Financial Advice Services.  

When reviewing individual client files, the FMA expects to find enough information to easily understand who the client is, their specific needs, the agreed scope of advice, the advice given (including analysis and reasons), the recommendations made, and how these recommendations are suitable for the client.

TIP: When we conduct compliance reviews or offer our popular Virtual Compliance Officer (VCO) service, we use the FMA record keeping assessment tool. This document tells you exactly what is expected of FAPs and advisers.

Keeping well organised records shouldn’t be a hassle for you or your clients, and it shouldn’t disrupt your business operations. Strategi has some tips for efficient and effective record keeping: 

  • Use a CRM where all inbound and outbound emails are linked to the respective client file. This avoids dragging and dropping or even worse – cutting and pasting emails to a client file.
  • If possible, operate a secure client portal where all client communications and documents sit and where they can be accessed by both the adviser and the client.
  • Use transcription software and voice recording to collect client information and upload to the client file within the CRM.
  • Use your cell phone to photograph documents like drawings and client notes from meetings and upload to the client file within the CRM.
  • Totally review your advice process so it integrates AI, automated processes, new innovative statement of advice templates and embedded links to other supporting data.

Strategi is here to help enhance your record-keeping procedures and provide you with fresh templates. Feel free to reach out to us by giving us a call or contacting us here.