Search

In an era of rapid technological advancement, it's becoming increasingly evident that technology plays a pivotal role in Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) compliance.

The realm of money laundering is far from static; it's a dynamic landscape perpetually shaped by evolving tactics and technology. Criminals are continually seeking innovative ways to exploit financial systems, and to stay ahead we must remain informed about emerging trends in money laundering.

The New Zealand Certificate in Financial Services (Level 5) is currently undergoing a full review to ensure it remains aligned with industry demands and student needs over the next five years.

The future of the financial advice industry By David Greenslade, Executive Director, Strategi Group I had the privilege of speaking at the Consilium adviser conference, where I discussed what the financial advice industry might look like in five years and how we can prepare for it. This exclusive event brings together many of New Zealand's top-performing investment advice businesses, all deeply committed to staying ahead of industry trends and optimising their strategies amidst change. Building on the insights shared at the Consilium adviser conference, this first of a two-part report, explores evolving client expectations—a critical factor in demonstrating FAP (financial advice provider) good conduct. These principles are applicable to all financial advisory businesses. Brand matters Clients have traditionally favoured advisers they trust and connect with. Yet, in recent years there’s been a shift towards clients seeking trusted company brands aligned with their values. They have become more aware of engaging with firms that have excellent advisers and are comfortable dealing with a team rather than just one adviser. To take advantage of this trend, FAPs should consider investing more into their brand and identify if it attracts the right clients. Some market research may need to be done to check alignment. Today, the concept of brand is more than just the logo and name. Does the message on your website go across the entire business in the form of staff you employ, how you deliver financial advice, the quality of your statements of advice, and the service standards you uphold?  Partnering for reputation The partners you align with can significantly impact your brand’s reputation. A case in point: during weekends I serve as an adventure tourism auditor for AdventureMark, experts in regulatory certification for adventure tourism operators. These operators, much like those in financial advice, must adhere to legal requirements and validate their compliance through audits.  In a market with three certification providers, AdventureMark holds the largest share, even though their fees are slightly higher than those of competitors. Operators recognise that AdventureMark elevates their quality reputation, prompting them to invest in AdventureMark certification and proudly display its logo as a symbol of trust and excellence. Now, take a closer look at your own outsourced providers, such as compliance, training, research, and technology partners. Do these organisations have strong brands that can enhance your own? Speed and responsiveness I started my career as a financial adviser in 1989. Back then, it was acceptable to take a week or more to draft a financial plan or schedule a second meeting with clients for discussion. However, as technology evolved, and clients embraced online research and shopping, their expectations for quicker service delivery increased. Think about how swiftly you expect deliveries after online purchases or responses to inquiries on websites and social media. These are the service standards your FAP should adopt. I often review client focus group findings for financial advisory businesses, and a consistent trend is the expectation of rapid service within 24 hours, whether through phone, text, or email. After any interaction, they also anticipate receiving the statement of advice within 24 hours. This aligns with the modern era, especially if your website emphasises being a forward-thinking, client-centric business that delivers top-quality service through skilled professionals and technology. Clients now naturally expect swift, efficient service. Next month, we will explore the dynamics of: The importance of enhancing your advice presentation; Performance as a hygiene factor; and Navigating industry trends. Let us know if you have any questions in the meantime.

Code Standard 9 of the Code of Professional Conduct for Financial Advice Services requires individuals providing financial advice to engage in annual continuing professional development (CPD) to maintain their competence, knowledge, and skills.

Royden McGee, Head of AML/CFT audit and consulting at Strategi recently attended the annual FIU / ACAMS 2023 Conference.

At Strategi, we have been conducting AML/CFT audits since 2013, and we have observed a distinct split in how reporting entities approach Customer Due Diligence (CDD).

With over a decade of experience doing compliance audits we are well established as experts when it comes to the rules of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act).

Are you aware of the ways in which criminal organisations are laundering money within your sector? Do you understand the tactics they employ and how to identify potential red flags?

We are pleased to share a positive update on the ongoing review of the New Zealand Certificate in Financial Services (Level 5) (Version 2). The review, spearheaded by Ringa Hora (Workforce Development Council) is progressing well, and it is anticipated that the revised draft qualification will shortly be available for wider industry consultation before being submitted to the New Zealand Qualifications Authority (NZQA).