“Applying for your full FAP licence sooner rather than later is a smart business decision,” says Strategi Group executive director David Greenslade. He says applying in 2021 has some important business advances, which he outlines below.       

The advantages of applying early

• Avoid missing the cut-off: Applying early removes the key business risk of not obtaining your full FAP licence by March 2023. Missing the deadline could be commercially devastating for a business.
• Positioning the FAP for growth: It motivates you to get your structural changes and compliance sorted out early in the transition period. This enables you to focus on marketing, growth and acquisition opportunities in the latter half of the transition period, when your competitors are scrambling to obtain a licence and may need to sell or merge with a FAP that already has a full licence. Advice businesses may get cheaper and easier to acquire as March 2023 gets closer.
• Reducing regulatory risk: Transitionally licensed FAPs already have significant compliance obligations but the directors may not be fully aware of those. Going through the process of applying early for a full FAP licence focusses directors’ attention on understanding those obligations, documenting policies, processes, and controls, revamping the advice process and building efficiencies into the business. This will reduce the risk of non-compliance.
• Creating a marketing advantage: Getting your licence early sets you apart from the majority of FAPs which only hold a transitional FAP licence and will give your clients an additional level of comfort that can be leveraged in marketing.  
• Improving business value: Applying for a full FAP licence involves documenting how your business operates, how you care for clients and how you remain compliant. Completing this process traditionally results in a better run business and one with a higher capital value.

Strategi Compliance provides a full range of services in this area. This includes supporting FAPs to:

• document policies, processes and controls;
• apply for a full FAP licence;
• remain compliant via a compliance help desk and compliance assurance reviews;
• complete AML/CFT audits;
• provide CPD via our online education platform - RADAR;
• complete Level 5 training; and
• offer FAP compliance officer and FAP governance training courses.

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