COFI: Building A System that Works Better for You
“Integrity is doing the right thing, even when no one is watching.” (C.S. Lewis)
Since 2004, the FAIS Act has regulated financial advice in South Africa. FAIS made our field more professional and set clear rules for being honest, giving advice, and doing the right thing.
That’s all changing with the introduction of COFI. The Conduct of Financial Institutions Bill, to give it its full name, will be promulgated in the next few months, with full implementation slated for 2028.
COFI goes a step further than FAIS by taking a broader perspective. It doesn’t just look at one piece of advice at a time; it considers how financial companies operate as a whole, all the way from product development through to how they support advisors and treat clients over time.
At its heart, COFI is about something we have always believed in: ensuring clients get fair results at every stage of their financial journey.
From a poster to a rule
One of the best things about COFI is that it strengthens the concept of “Treating Customers Fairly”. This means that banks and other financial institutions need to be able to prove that real customers’ needs are taken into account when making decisions.
Under COFI, it will be much easier to see the costs, risks, and benefits of an investment. This makes things clearer and safer for you as it means your goals will better align with the solutions you have, and there will be fewer surprises.
Personal accountability
COFI also holds the heads of banks and other financial institutions more accountable than they are now. Senior leaders will be responsible not only for what they say they will do, but also for how their companies act. We like this because it aligns with the advice we give and receive every day. It also helps companies work more effectively and foster better cultures.
One watchdog, one clear mission
The Financial Sector Conduct Authority (FSCA) will be responsible for ensuring that COFI’s rules are followed. This speeds up the regulatory process. Consumers (that’s you) will benefit from a clearer system with more consistent standards.
What stays the same and why it’s important
The rules may be changing, but the most essential parts of your financial journey will always be the same.
We are still here to give you professional, well-thought-out advice that aligns with your goals, situation, and values. Our relationship is still essential because we trust each other, communicate openly, and plan for the future.
You still need to be a thoughtful and involved client. To make sound financial decisions, you still need to ask questions, look over your statements, and understand your plan.
COFI makes the things around us stronger, but talking to your financial planner regularly is as important as it’s ever been.
Why this is good news for you
COFI ensures that everyone in the economy acts fairly, thereby reducing the risk of fraud and other forms of bad behaviour. Bad products or advice are less likely to go unnoticed.
Changing from FAIS to COFI is a good step towards making South Africa’s financial industry more open, responsible, and customer-focused.
If you have any questions about these changes or how they will affect your financial plan, please don’t hesitate to contact us. We’re here to help you move forward with confidence and knowledge.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.
© FinDotNews
