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					Compliance & Professional Standards – 2009 Wrap up
(1st Jan – 31st Oct 2009)
PRESENTED BY Peter Hall NOV09
  Compliance Excellence Awards QLD- Individuals


• The Compliance Excellence Award recognises Representatives and franchises who demonstrate outstanding
  compliance behaviours.
• Eligibility - Representatives need to achieve at least 2 consecutive Compliance Review results of 95% or more
  over a period of 2 years.



Our congratulations to………….


• Genevieve de Szoeke (2nd award)
• Judy O’Brien
• Kathy Paget
• John Bylicki
• Karen Dwyer
• Kellie Payne (2nd award)




                                                                                                                  1
  <date>   RIAG Adviser | Vision
 Compliance Excellence Awards- Franchise


Our congratulations to………….


RI Harvey Bay
• Kathy Paget
• Judy O’Brien
• Genevieve de Szoeke




                                           2
 <date>   RIAG Adviser | Vision
Incident summary 2009

     Carried                      Incidents       Closed         Open            RI Exposure        Payouts for 2009
      forward                     received in   Incidents for   Internal
     from 2008                       2009           2009        Incidents
        6                             34            33              7             $51,253.07           $115,366.70

         Some common issues identified are:

         1.      Tax implications associated with client's exceeding the non concessional contribution cap for
                 superannuation.

         2.      A transposition error resulted in clients having some funds invested in the incorrect funds when
                 completing the application forms.

         3.      Delay in implementation of recommendations following client completion of application resulting in
                 a financial loss to client.

         4.       Non-completion of AML/CTF identification and verification requirements.

         5.       Non completion of Remedial Action Plan from previous year’s compliance review.




                                                                                                                       3
<date>    RIAG Adviser | Vision
Complaints comparison 2008 Vs 2009
                                                                        Complaints Received this Month
     10
      9
      8
      7
      6
      5
      4
      3
      2
      1
      0             CF           January   February    March    April         May         June            July    August   September     October   November   December

         RI         3                  3      2          3        3            2              1            7        3          2            0
         CRC        2                  0      0          1        0            1              1            2        0          0            0
         FOS        6                  1      0          0        3            0              0            1        1          0            0


                                                                                   RI   CRC       FOS



                                                                                                          Systemic Issues              Number of Cases 2009
               Complaints received in                 Payouts for 2008 v 2009
                   2008 v 2009                                                                          Service/Fees                               13

                                                                                                        Tax implications                           7

                                                                                                        Investment                                 3
                            26 v 26                   $84,218.04 v $278,861.08                          Performance
                                                                                                        Advice Related                             3




                                                                                                                                                                         4
<date>         RIAG Adviser | Vision
Complaints 2009 – Top 5

         Service/Fees
         Typical issues raised by clients include:-
         • Not following instructions
         • Not receiving adequate ongoing service from adviser


         Tax implications
         Typical issues raised by clients include:-
         • Client exceeding non concessional contribution cap for superannuation and incurring a tax penalty.
         • Client incorrectly receiving advice to make a superannuation contribution which would be tax deductible.


         Advice related
         • Client not being invested in line with their risk profile. Inadequate/no explanation of variance to client.




                                                                                                                         5
<date>     RIAG Adviser | Vision
Regional Based Training (RBT)

                                                       Comparison of planned v actual RBT’s


                           20
                           18
                                                                                                           16          18
                           16
         Number of RBT's




                                                                                                      13        14            15
                           14
                                                                                                12         13          14
                           12
                                                                                                11
                           10
                                                                                   9
                           8
                                                                                         7
                           6
                           4                                                   4
                                                                                   4
                           2                                           2   2
                           0        0              0         0
                                 Jan         Feb       Mar       Apr       May         Jun   Jul     Aug    Sep      Oct    Nov    Dec

                                                                                        Month

                                       Planned
                                       Actual



                                                                                                                                         6
<date>         RIAG Adviser | Vision
Compliance Review Program


                                                    Comparison of planned v actual Compliance Reviews

                                     250
                                                                                                                 220
                                                                                                           195
         Number of Adviser Reviews




                                                                                                                       230
                                     200                                                             170   181
                                                                                              140
                                     150                                                             163
                                                                                        117
                                                                                               134
                                                                                 88
                                     100
                                                                           59           100

                                     50                              31
                                                               15                71
                                                                15         55
                                                       3   3
                                                                      31
                                      0
                                                  Jan Feb Mar Apr May Jun             Jul   Aug Sep Oct Nov Dec

                                                                                Month

                                                 Planned
                                             Actual



                                                                                                                             7
<date>                   RIAG Adviser | Vision
Compliance Review Program results



                                                     4.2%

                                             15.4%

                                                                  64.3%
                                 16.1%




                                 Excellent                      90-100%
                                 Very good                      80-89%
                                 Satisfactory                   70-79%
                                 Unsatisfactory less than 70%



                                                                          8
<date>   RIAG Adviser | Vision
Compliance Review Program

                                   Average score


          QLD                          91%


          NSW                          91%


         VIC/TAS                       89%


                                                   QLD & NSW
           WA                          86%          jointly lead
                                                    the way!
           SA                          82%


         National                     87.8%




                                                                   9
<date>     RIAG Adviser | Vision
Top three issues YTD



         Question                                      Question                                % Non- Yes No       NA
         Number                                                                               compliant

                               Where there is a change in risk tolerance, has a new risk
             24                                                                                14.00%   43    7    776
                               profile questionnaire been completed?

                               Declarations - Client/s Declaration signed/resigned & dated?
             25                (Also For Existing Clients)                                     9.72%    734   79   13


                               Has the amount of Life insurance recommended been based
             57                on the analysis on file?                                        9.65%    103   11   712




                                                                                                                         10
<date>     RIAG Adviser | Vision
  Independent Review (AFSL & Adviser Testing) – Holley
  Nethercote Lawyers

• Bi-annual external review conducted on all INGA's aligned AFS Licensees.
• 18 RI Advisers were randomly selected for Adviser Testing in September/October 2009.


Holley Nethercote have reported:


    – No significant issues identified – some recommendations made to enhance the AFS Licensee’s compliance
           regime.
    – “RI has, during the last few years, exhibited a strong compliance culture, and this was driven, in no small
           part, by the people working in the compliance area, who were able to engage the broader business. It
           appears to me that there remains a strong compliance culture within RI”.
    – “In my view, the process of monitoring and supervision of representatives, and the quality of the reports
           provided, are very good”.
    – “In my view, RI’s policies and procedures appear to be adequate and demonstrate that it is serious about
           managing conflicts of interest”.




                                                                                                                    11
  <date>      RIAG Adviser | Vision
RI Compliance - current team structure
                                                                           Peter Hall
                                                                        National Manager
                                                                Compliance and Professional
                                                                        Standards



                                                                                               John Evans (Contract)
                                                                                               John Evans (Contract)
                                            Preeti Saraswati
                                             Preeti Saraswati
                                     Compliance / Marketing Assistant                        Senior Compliance Manager
                                                                                             Senior Compliance Manager
                                         Compliance / Marketing                            (Deepthi Ravi Kumar –– maternity
                                                                                           (Deepthi Ravi Kumar maternity
                                                 Assistant                                             leave)
                                                                                                        leave)




                                                                    Alexis Salerno                                     Ramona Blaquiere
                 Judy Baker (P/T)                                     Alexis Salerno                                   Ramona Blaquiere
                                                                Compliance Operations &
                                                                 Compliance Operations &                      Compliance Development Manager
          Vetting / Compliance Manager                           Development Manager                          Compliance Development Manager
                                                                  Development Manager




                                                                                                                                               12
 <date>      RIAG Adviser | Vision
Proposed regulations and industry changes - 2010 onwards


                                                    RIPOLL
                                                   INQUIRY
                                     CONSUMER
                                                               MARGIN
                                      CREDIT
                                                               LENDING
                                       CODE




                                                  PROPOSED
                                 COOPER                             FEE FOR
                                                 REGULATIONS
                                 REVIEW                             SERVICE
                                                       &
                                    OF                                Vs.
                                                   INDUSTRY
                                  SUPER                           COMMISSIONS
                                                    CHANGES



                                                                FPA &
                                                                ASIC’s
                                     HENRY TAX
                                                               QUALITY
                                      REVIEW
                                                                ADVICE
                                                   DEFAULT     PROJECT
                                                    FUNDS
                                                  FOR AWARD
                                                   WORKERS


                                                                                13
<date>   RIAG Adviser | Vision
Projects – 2009/2010


                                                    NEW BRAND
                                                    GUIDELINES
                                                                     UPDATED
                                   ENHANCEMENT
                                                                       FSG &
                                      TO CRP
                                                                     ADVISER
                                    /DATABASE
                                                                      PROFILE




                                                                            HOLISTIC
                                                    PROJECTS:
                                 QUICK                                      ADVICE
                                                    BUSINESS
                                 PLANS                                       MODEL
                                                    STRATEGY




                                     SMSF / RISK
                                     (POLICIES &                  ACCREDITATIONS
                                       TOOLS)
                                                    UPDATE TO
                                                   PROFESSIONAL
                                                    STANDARDS

                                                                                       14
<date>   RIAG Adviser | Vision
Financial Ombudsman’s Service (FOS) Update - Welcome


         Alison Maynard
         Ombudsman
         Investments, Life Insurance & Superannuation




                                                        15
<date>     RIAG Adviser | Vision

				
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