Is your advice leading to better outcomes? Can you prove it? For intermediaries, the Conduct of Financial Institutions (COFI) Bill is less about reinventing advice and more about demonstrating the value already being delivered. 

The Bill – currently in the parliamentary process – will consolidate conduct-related duties into one single legislative framework. This gives the Financial Sector Conduct Authority (FSCA) clear jurisdiction to set cross-sector conduct standards and deal with poor customer outcomes. Monique Cloete, Head of Group Retirement Solutions at Old Mutual, stresses that it’s a principles-led approach, focused on fair customer outcomes, that goes beyond box-ticking to real results. 

COFI’s promulgation is expected this year, with a staggered implementation. The takeaway? The time to prepare is now. Here is how intermediaries can prepare for COFI. 

Map your activities to the new COFI framework

In its COFI Public Workshop document (2019), National Treasury  highlights the Bill’s move “from an ‘industry silo’ structure to an activity-based structure”. COFI introduces an activity-based licensing model, replacing today’s product-category approach under the Financial Advisory and Intermediary Services Act (FAIS). For intermediaries, the priority is mapping existing services to the new COFI activity categories in Schedule 1.

This exercise is an opportunity to clarify where your practice genuinely adds value, streamline operations, and ensure your governance policy reflects how you serve clients. Existing licences will continue during the transition, but alignment will be expected as COFI is phased in. 

Shift from compliance processes to demonstrable outcomes

COFI reinforces a principles-led approach where governance arrangements must be shown to work in practice, not just on paper. For intermediaries, this means shifting the focus from whether processes are in place to whether they are delivering appropriate customer outcomes.

Advice businesses that have embedded the FAIS Act’s Treating Customers Fairly (TCF) principles should already be aligned. However, COFI raises the expectation that leadership teams can evidence how decisions translate into fair customer outcomes.

Strengthen your understanding of target markets and product alignment

Monique emphasises COFI’s focus on radical transparency and value for money. COFI places clear responsibility on both product providers and distributors to ensure products are suitable for defined target markets and that distribution supports appropriate outcomes.

Given intermediaries’ involvement in distribution, this requires a deeper, more explicit understanding of client segments, product risks, and how recommendations align with product design and intended use. 

Ensure all communication is clear and fair

In terms of communication, Monique adds, “COFI is about ensuring that members are getting what's been promised on the tin.” COFI calls for strict communication when it comes to advertising and disclosure. This responsibility cannot rest with product providers; intermediaries also need to check that information in product packs is simple, accurate and fair. Similarly, advice needs to be based on adequate client information, properly documented, and transparently explained – including fees, scope, recommendations, and mentions of any incomplete information. 

Prepare for greater scrutiny of value, distribution and outcomes

COFI will place increased focus on post-sale barriers, service expectations, and ongoing duties, along with complaints handling and redress. There will be a shift toward identifying the underlying cause and fair resolution, rather than complaints volume tracking. At the same time, elements of the Retail Distribution Review are expected to be embedded through COFI conduct standards, reinforcing transparency in remuneration and intermediary categorisation. It’s about being transparent about who is being represented and how people are being paid. 

The overall expectation is clear: intermediaries must be able to show that advice leads to fair, measurable outcomes for clients over time. Monique says, “When we start talking about putting members first, that’s when the culture has moved.” For her, COFI’s biggest long-term shift will be a new way of thinking. Old Mutual Corporate is committed to navigating this new COFI culture with our intermediary partners as we welcome the Bill, together.