The Conduct of Financial Institutions (COFI) Bill is reshaping the financial advice industry, embedding Treating Customers Fairly (TCF) as a regulatory standard that supports best practice principles. While compliance remains essential, COFI pushes financial advisers to go beyond the rules and create client experiences founded on trust, transparency, suitability, and long-term value.

With TCF at the core of COFI, financial advisers must shift their focus from simply ticking regulatory boxes to delivering genuinely value-adding client outcomes. In an industry where trust is a key differentiator, those who embrace these changes will not only meet compliance requirements but also build stronger, more resilient client relationships.

What does this mean for financial advisers?

Under COFI, TCF is more of a mandate than a guideline. Advisers must ensure:

  1. Clear, understandable communication

Clients should never feel uncertain about the advice they receive. Financial advisers must:
– Use plain language to explain financial products, risks, and recommendations.
– Avoid jargon and complex terms that could confuse clients.
– Ensure full disclosure of costs, fees, and potential conflicts of interest.

  1. Fair treatment across the entire client journey

Fairness isn’t just about advice at the point of sale. It must be embedded throughout the entire client relationship:
– From onboarding to policy renewals, claims, and service interactions, fairness must be a constant.
– Clients should feel valued and supported during every step of the client engagement process, regardless of their portfolio size.
– Firms should proactively identify and address pain points in their client journey.

  1. Personalised advice that genuinely meets client needs

COFI reinforces the principle that suitability and client outcomes take precedence over product sales. Financial advisers must:
– Conduct thorough needs assessments before making recommendations.
– Ensure clients receive suitable advice that aligns with their long-term financial goals.
– Move away from product-pushing strategies and focus on holistic financial planning.

  1. Proactive compliance and accountability

TCF under COFI requires firms to demonstrate that they have systems in place to uphold fairness principles. This means:
– Implementing compliance frameworks that track and measure client outcomes
– Regularly reviewing processes to ensure they align with TCF principles
– Holding leadership accountable for upholding ethical client treatment

Beyond compliance: a competitive advantage

For forward-thinking financial professionals, COFI sees opportunity within the somewhat regulatory challenge. Embedding TCF into your practice enhances client retention, strengthens brand trust, and differentiates your firm in a competitive market.

How can you leverage TCF for stronger client relationships?

  • Adopt a client-first mindset: Every decision should prioritise what’s best for the client, not just what meets compliance.
  • Use technology to enhance transparency: Digital tools can help track advice, improve reporting, and make communication more effective.
  • Educate clients, don’t just advise them: A well-informed client is an empowered client.

The future of advice starts now

As COFI reshapes financial services, the most successful advisers will be those who don’t just comply but lead with a client-centric approach. How is your practice evolving to meet the new TCF-driven standards?

 

Graviton Financial Partners (Pty) Ltd is an authorised financial services providers in terms of the Financial Advisory and Intermediary Services Act,2002. The information in this article does not constitute financial advice While every effort has been made to ensure the reasonableness and accuracy of the information  contained in this article (“the information”), the FSP, their shareholders, subsidiaries, clients, agents, officers and employees do not make any  representations or warranties regarding the accuracy or suitability of the information and shall not be held responsible and disclaim all liability  for any loss, liability and damage whatsoever suffered as a result of or which may be attributable, directly or indirectly, to any use of or reliance  upon the information.