Billy Seyffert, the chief operating office of Moonstone Compliance, breaks down the key regulatory and compliance developments of 2024 and what’s on the horizon for 2025.
Whether you’re a financial adviser, insurer, or an accountable institution under the Financial Intelligence Centre Act (FICA), this discussion offers valuable insights into the changes shaping the compliance landscape.
Navigating the two-pot retirement system
The introduction of the two-pot regime was the most significant legislative change of 2024. Billy kicks off by delving into the game-changing implications of the system for financial advisers, and what should be top-of-mind when providing advice in this new landscape.
Billy emphasises the long-term impact of pre-retirement withdrawals and the need for strategic client guidance. He also sheds light on the looming risk of professional indemnity complaints linked to underperforming investments. Find out how to safeguard your practice.
Addressing challenges in the funeral insurance regulations
The FSCA and the Prudential Authority have invited stakeholders to participate in reviewing the regulations governing the distribution of funeral insurance. Workshops are scheduled to be held early next year.
Billy unpacks the long-standing challenges in the funeral insurance sector. He discusses whether the controversial change to the definition of “group” has been good for parlours and consumers. He also looks at the other challenges in the funeral insurance sector that the upcoming review may want to address.
FICA compliance: good news and bad news
Billy explores the state of FICA compliance among financial services providers (FSPs) and other accountable institutions. While FSPs are doing well when on-boarding new clients, there’s room for improvement in managing existing ones.
Billy also highlights some of the practical challenges to complying with FICA, which include trying to perform sanctions screenings in remote areas before establishing a client relationship. These issues need to be addressed by the Financial Intelligence Centre via a Public Compliance Communication.
Everyone is suffering from “FICA fatigue” – consumers are tired of being asked for their ID, proof of residence, source of funds, and so on. This makes FSPs sensitive about requesting this information, particularly in a sales context. Billy has some practical advice in this regard.
Beyond the FSP space, the compliance picture is pretty dire – and Billy cites the large number of high-value goods dealers that have not registered with the FIC as a case in point. He draws attention to the consequences of not registering and complying with FICA.
Strengthening cyber security: Joint Standards in focus
In the concluding segment, Billy discusses the key features of Joint Standard 1 of 2023 on IT Governance and Risk Management, which came into effect in November, and its companion, Joint Standard 2 of 2024 on Cybersecurity and Cyber Resilience, which takes effect in June 2025.
Billy explains how these standards differ, what they aim to achieve, and how they complement each other. He emphasises that while the goal isn’t to make businesses immune to cyber threats, these measures are designed to ensure rapid recovery and data restoration.
He highlights the practical benefits for financial institutions of complying with the Joint Standards.
This interview is packed with actionable insights to help you navigate complex regulatory landscapes and safeguard your business.
Click below to watch the full interview.