Click here to learn more about Fedgroup.<\/strong><\/a><\/li>\n<\/ul>\n\n\n\nAt the same time, it is critical that these improved FICA compliance strategies don\u2019t hinder client engagement and onboarding \u2013 making it important for FSPs to approach compliance holistically.<\/p>\n\n\n\n
\u201cWe must identify exactly what we need to protect our clients and remain compliant, and ensure that we do not collect any unnecessary data or force our clients to do pointless tasks,\u201d said Fedgroup Executive Director and GM: Investments Michael Field.<\/p>\n\n\n\n
Lelani van der Merwe, Head of Governance, Risk Management, and Compliance at Fedgroup, added that the best way to achieve the ideal balance is through a risk-based compliance approach.<\/p>\n\n\n\n
\u201cIn the past, compliance revolved around filling out checklists, but these lists were rigid and presumed that the correct questions were always being asked,\u201d said van der Merwe.<\/p>\n\n\n\n
A risk-based compliance approach solves these challenges, as it instead treats each situation on its merits.<\/p>\n\n\n\n
What is necessary for compliance in one institution may not be necessary in another, and it is therefore critical that there is a degree of flexibility and critical thinking applied to the compliance process.<\/p>\n\n\n\n
\u201cWe had a recent scenario where we learned that the entire set of documents we received from a prospective \u2018client\u2019 were fake and were instead an attempt at identity theft,\u201d said Field.<\/p>\n\n\n\n
\u201cThey had all passed the standard compliance processes and checklists of the bank they were using, but by using a risk-based approach, we could identify that something was off and saved a potential victim millions of rand.\u201d<\/p>\n\n\n\n
The importance of compliance<\/h3>\n\n\n\n
Field said that, conversely, the impact of a poor compliance strategy can have a devastating effect on an FSP \u2013 both in terms of huge fines and reputational damage.<\/p>\n\n\n\n
In the case of smaller institutions and brokerages, these could go as far as to completely derail their operations and them having to close their businesses.<\/p>\n\n\n\n
Accountable institutions must therefore treat compliance as a critical part of their business security and continuity plans.<\/p>\n\n\n\n
Compliance must also not be viewed as only a preventative measure \u2013 as it can deliver active benefits for your company.<\/p>\n\n\n\n
If your business remains compliant while keeping the requirements processes simple, clients will trust your organisation to store their data and will prefer your services thanks to the streamlined customer journey.<\/p>\n\n\n\n
\u201cAt Fedgroup, we can fit an entire application form on a single page \u2013 as opposed to the reams of paper that many of these forms have historically comprised,\u201d said Field.<\/p>\n\n\n\n
\u201cWe can do this without compromising our compliance, because we have a clear and robust strategy that identifies exactly what data we need and what data we don\u2019t.\u201d<\/p>\n\n\n\n
Click here to learn more about Fedgroup.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Compliance protects your business and your clients, and is now being viewed as a competitive differentiator.<\/p>\n","protected":false},"author":57,"featured_media":803464,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10459],"tags":[1117,13307,21224,939,3488,21216],"class_list":["post-803462","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-cybercrime","tag-fedgroup","tag-fedgroup-financial-service-providers","tag-financial","tag-fsp","tag-michael-field"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/803462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=803462"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/803462\/revisions"}],"predecessor-version":[{"id":803570,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/803462\/revisions\/803570"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/803464"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=803462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=803462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=803462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}