April Update: Reviews, reporting and conduct


Development is an endurance exercise with incremental improvements
— Sri Mulyani Indrawati

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OpenAFSL, as a compliance platform, is constantly evolving in response to client suggestions, regulatory changes or our commitment to continuous improvement.

Here are some of the refinements that went live on 1 April 2018.

We think you'll love these but, spoiler alert, what till you see what's coming in the next release. 


Reviews

openAFSL is the only monitoring and supervision platform you'll need.

It's the only one platform Assured Support uses and the platform offers far more than a proven methodology, granular reporting and clear benchmarking.

The reality is that Licensees need to conduct reviews for a variety of purposes and each is slightly different and needs to be treated differently for reporting and escalation purposes.

When you're scheduling a review, you have the capacity to select the purpose of the review. Although the default setting is "Standard", you can now select between:

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  1. Induction - Test the advice and advice processes of advisers before appointment
  2. Exit Review - Identify whether the advice of departing advisers hides any liabilities or risks to your business.

  3. Pre-vet - Help new advisers understand and adapt to your expectations.  
  4. Standard - Monitor and supervise your representatives using a consistent, predictable and effective audit methodology.  
  5. Targeted - Focus on an adviser, or a particular issue, in response to, or in anticipation of regulatory surveillance.
  6. Verification - Test your internal capability, and train your compliance staff, by reviewing the same files and comparing the results. 

There are some consequential changes. The Operational Risk questions will now only appear for Standard reviews. If a file selected for review is missing, or empty, it will automatically be marked as containing material issues. Non-standard reviews don't show in the adviser's review history but are presented separately in their dashboard. 

Another key change has been implemented at the file level. Given that an SMSF file can have up to five (5) clients, you can now record all five clients - including their ages, platforms, portfolio values and insurance details.

The remediation engine has been tweaked a little too. Now, the pre-set remediation time-frames will be based on the date the report is finalised (but can be over-written if required). 


Reporting

Enjoying a purple patch? Because they both the "consequence" report and the "file assessment" used a similar blue, some advisers had difficulty separating the entirely different reporting measures. We've mitigated this risk by changing the colour of "compliant advice" from blue to purple. So, if a file is shown as purple, it's a simple way of showing that it complies to the adviser's legal and professional obligations.

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As a consequence, the results distribution reporting is even clearer. Licensees can look at the report and easily identify which advisers are adequately supported, which are exceeding their legal and professional obligations and which advisers need more support from their licensee. Better yet, it will differentiate your advisers relationally and identify those advisers that are on the cusp of another result. 

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In addition, Licensees can now create custom reports from multiple analytic inputs.

If that weren't already enough, Licensees can now generate reports on the progress and effectiveness of their  remediation efforts. 

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Managed Accounts

Assured Support has always been active in the managed accounts space, but we understand that some Licensees are struggling to operationalise  ASIC Corporations (Managed Discretionary Account Services) Instrument 2016/968, so we've made some enhancements to openAFSL to assist them.

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Licensees can now add "Investment Managers" to openAFSL. So, those licensees that have appointed Authorised Representatives (or Corporate Authorised Representatives) as External Advisers to a Managed Account Provider can record them (and their mandates) on their compliance platform.

This makes  it easier to ensure that the MDA contract is, and remains, suitable.

Businesses, and people, can be subsequently linked to Investment Managers. 


Administration tweaks

If you use the system everyday (like we do) you want your system to accommodate your preferences. It does. We've previously addressed how you can incorporate your internal guidelines into the review methodology, but here are three additional tweaks you've asked to be made.

  1. Format tools - The standard text editor now includes the ability to clear formatting from a text block. It might not seem important, but if you routinely 'cut and paste' text from other applications, you can ensure that their hidden formatting commands don't disrupt the flow or appearance of your report.
  2. Location adjustments - openAFSL presumes that any review is done on-site, but by choosing "remote review' when generating the report, the text of the report will change to reflect that fact.
  3. Less haste, more speed - openAFSL will only search for businesses and people once you stop typing.

Over a quarter of [firms] have deployed, or intend to deploy, a regtech/fintech solution to help the management of culture and conduct risk
— Thomson Reuters "Culture and Conduct Risk 2018: Benchmarking 5 years of implementation

 

Training and advice

Assured Support is pleased to announce that Kye Park (Kye@assuredsupport.com.au) has joined the team. We're pleased to welcome a compliance expert of her skill and experience but we are even happier to announce that she'll be the Account Manager (and key contact) for those of you using openAFSL in your business.

So, if you are an existing openAFSL Client and you have questions, would like training, or have some suggestions contact Kye directly.

 

If you'd like to learn more about openAFSL, and how it can free you from the burden of compliance, contact Peter Turbach on 0410 220 334 (peter@assuredsupport.com.au).