Impressive record for FIA

THE FIA celebrates its fifth anniversary this year, having secured industry recognition in an era characterised by the tough regulatory and economic environment.

The realisation that all financial services intermediaries — irrespective of their size or the discipline practised — have common interests was integral to the formation of the association, says Brian van Flymen, president of the FIA for the 2011-13 term of office.

“Our strength has been to create unity from this diversity and to manage these common interests, particularly with the regulators,” he says.

The FIA, formed in January 2008, is the culmination of the dream for a unified voice to represent intermediary interests to all stakeholders. “Our association prides itself on its transparency and willingness to work with industry stakeholders who share the vision of protecting our interests and promoting to consumers the value of the advice we offer,” Van Flymen says.

He says that financial products can only fulfil the purposes for which they were intended appropriately “if accompanied with relevant explanation, clarification and appropriate advice.

“This aligns itself with the both the stipulations in the Financial Advisory and Intermediary Services (FAIS) Act and the intentions of the pending treating customers fairly regime.

“The rendering of such advice has the dual effect of ensuring our continued existence and, equally as important, protecting consumer interests. The importance that the value of advice plays needs to be broadcast as widely as possible to achieve this aim.”

To this end, says Van Flymen, the FIA has involved itself in a number of activities.

“Specifically, we will continue to support our members with ongoing professional development. We also soften the effect of overarching consumer protection legislation by interacting with many stakeholders on their behalf.”

He says that the FIA can boast many successes over the past five years, including:

The introduction of the FIA Code of Conduct to offer members a professional framework for conducting business with their clients in line with the provisions of the FAIS Act;

Representing its members’ concerns to Parliament in 2008 with regards to the then-proposed Insurance Laws Amendment Bill, with the result that the implementation date was pushed out;

Being instrumental in securing income streams for brokers prior to the introduction of new Binder Agreements;

Providing member support for the thousands of key individuals and representatives within the FIA’s structures who had to sit the level 1 regulatory examinations;

Making direct and successful representations to the health minister to have broker healthcare fees reviewed;

Successfully petitioning Sasria to review its broker commission structures, achieving an increase for its members from 7.5% to 10% of premium last year —– and to 11% from July this year; and

Ensuring that its larger members continued to receive section 156 interest on premium when regulators proposed the practice be abandoned.

The FIA is also involved in a joint venture known as the human capital project.

It will work with other representative bodies such as South African Insurance Association and the Insurance Institute of SA. as well as the Financial Services Board, to create an industry road map for new entrants to the insurance industry.

Van Flymen says that the annual FIA awards enjoy wide recognition and represent the benchmark for excellence in the offerings of product providers, as rated by intermediaries.