The Financial Services Reforms Act (FSRA) affects many people particularly in banking and insurance.
For some people in the Australian financial sector just seeing the acronym above can elicit a big sigh. I know it has created a great deal more extra work for you over the past one to two years. For customers it may appear just as a change of name from brochure to Product Disclosure Statement (PDS).
So what is FSRA? Why have it? and What’s the effect?
What is FSRA?
FSRA is a federal initiative (Act) that changes the way in which providers of (most) financial services interact with their customers. The idea is to provide customers with informed choices.
It creates a standard of conduct across the board, sets up one licensing regime for financial services and products (by amending some chapters of the Corporation Act) and enforces organisational disclosure (e.g. brochures and advice).
Why have it?
The Australian Securities and Investment Commission (ASIC) is the body responsible for ensuring that each organisation meets the following:
- Correct and proper disclosure (product info)
- Qualified staff
- Effective complaints handling procedures
Essentially FSRA will give consumers informed choices every time. Honesty transparency and fairness is now the playing field for all providers.
What’s the effect?
The penalty for non-compliance is great, so if you need help in training your people further, testing or developing your processes just let me know. Good luck!
As customers we will hear the old term brochure replaced with Product Disclose Statement (PDS). Some conversions/ financial advice will be confirmed in writing and called a Statement of Advice (SOA).
The biggest impact for organisations is in frontline customer delivery (e.g. call centres and face to face) plus fulfillment of information.
I thought some of my in last month’s comments about retrenchments issue would raise a few eyebrows. I’m sure you understand what I write in one page is the beginning of the topic. I’m glad it raised discussion because it’s not openly talk out.
There are two things that keep this company doing corporate training and organisational consulting.
1. repeat clients and
2. referral business.
I just want to say thank you again to my repeat clients and for everyone who refers projects to us. Thank you. I promise we will treat you and anyone you refer to us very well. Till next month take care.
Kind regards, Sam