[GRTV] Simon Fisher on FAP licensing

Mortgage People and Insurance People managing director, Simon Fisher sits down with Good Returns publisher, Philip Macalister to discuss what the company had to do to get a FAP licence.

Monday, November 7th 2022, 7:39AM

As part of the new financial advice legislation, Fisher the journey to a full FAP licence was a fairly seamless process and more about updating the company’s processes and systems in order to fit the new regime.

”We’ve invested a lot of money to make sure it's easy for advisers to access client data as we know some clients may have four to five product lines with us and that security of client data is important.”

In addition, Fisher says they are currently implementing a two factor authentication system and other processes to ensure continuous improvement and ease of use. The process will take time but is needed for the company’s operation and viability.

“How are we as advisers reporting things to clients? Once we identify an area that needs to be changed in the system- we change it accordingly.”

With that, there has also been discussions surrounding insurance servicing commissions and what that means now with changes around the new financial services code of conduct.

Fisher says the level of commissions will likely stay the same due to ongoing transparency with their service and products, but in order for advisers to receive those servicing commissions there is an expectation to be actively servicing those clients on an ongoing basis.

“Annual servicing and making sure some form of contact is ongoing to ensure our products are still fit for purpose for our clients and gauging those premiums and affordability for clients.”

As for the mortgage business side of things he says they could be looking at quite a change in the next 12 months but with any new legislation and new code standards, it is not yet understood what will be required.