January 8, 2013: the « AMF » and the « ACP », both French organisations for financial regulation, issued a recommendation on the theme collecting information on customer knowledge within the duty of advice in life insurance. More precisely, the current legislation already requires that professionals of finance must ascertain the needs and requirements of the client, its financial situation, its objectives, as well as his knowledge and experience in finance, in order to deliver an appropriate advice in the marketing of a financial instrument or a life insurance.
The recommendation, which will be in place on October 1st 2013, lead to a curing of the process for:
- The procedures for collecting and tracking information
- The information content
- The use of information
- The methods and procedures implemented
This stricter supervision of the activity requires companies’ new obligations, requiring a mobilization in time and resources. In this context, KeeSystem® provides an effective response which is KeeSense®: indeed, the wealth management solution integrates functionality for financial institutions to take into account these guidelines.
Thanks to its scalable features designed to meet the requirements of transparency and traceability, the use KeeSense® facilitates the transition for financial companies:
Collecting and tracking information: KeeSense® allows the integration of customised form in order to better define the management profile in line with the investment objectives of the client.
Information content: KeeSense® allows entering very accurately the financial situation of the customer (origin of capital, financial situation, client’s goals…) and the level of knowledge he has regarding financial products (economic sectors, currencies, investment vehicles, etc.). In this way, the manager is able to define his profile in order to advise him adequately and give him the best solutions in terms of objectives, risk tolerance and investment horizon.
Use of information: KeeSense® allows:
- to the advisors: to collect comprehensive information, to check their consistency and relevance and have a complete record to support the consulting manager in his process, all of this in the interest of the client.
- to integrate customer information regarding specific restrictions made by the customer, such as sector, currency, country, transmitters, etc.
- to generate alerts in case of any discrepancy with the management profile or to the attention of the manager, attempting to purchase an inappropriate product to the client.
Methods and procedures implemented:
- the integrated CRM allows the traceability of the customer relationship, keeps all the information in a secure way and manages accesses (letters or email exchanges with the advisor).
- the integrated EDM allows to encrypt and manage documents and their life cycle (presence of documents, signatures, checking validity dates, etc.) and automatically generates alerts in case of non-compliance issues.
For all the reasons mentioned above, the use of KeeSense® allows the company to implement procedures regarding the new directive.
For further information about the recommendation 2013-R-01 of January 2013 : http://www.acp.banque-france.fr/fileadmin/user_upload/acp/publications/registre-officiel/Recommandation-2013-R-01-de-l-ACP.pdf