FSP BUSINESS 4.0
FSP BUSINESS 4.0
Launching 2025

COFI Readiness Assessment

Prepare your business for South Africa's new Conduct of Financial Institutions Act. Comprehensive compliance tools and assessment systems designed for FSPs.

2026
Implementation Year
150+
Requirements
12
Focus Areas

Time-Sensitive Compliance

COFI implementation deadlines are approaching. Start your compliance assessment today to ensure your business is fully prepared.

Coming to you on 3rd March 2026

Comprehensive Compliance Solutions

Professional-grade tools for COFI readiness, business assessment, and strategic planning. Competitive pricing designed for South African FSPs.

COFI Readiness Assessment

Complete a 100-question, FSA legislation-referenced assessment across 12 critical compliance categories. Identify gaps, track progress, and generate detailed readiness reports.

Business Assessment Tools

Comprehensive gap analysis and performance evaluation. Benchmark against industry standards and identify improvement opportunities.

Strategic Planning Suite

Business plan creation, action item management, and goal tracking. Transform diagnostics and assessments into actionable and implementable strategies.

Understanding COFI

The Conduct of Financial Institutions Act represents South Africa's most significant regulatory shift for financial service providers since FAIS.

COFI introduces comprehensive conduct standards that apply to all financial institutions operating in South Africa. The Act shifts regulatory focus from compliance documentation to demonstrable customer outcomes and fair treatment throughout the client lifecycle.

For FSPs, this means enhanced accountability, stricter documentation requirements, and the need for robust conduct risk management frameworks. The Act empowers the FSCA with expanded supervisory powers and establishes significant penalties for non-compliance.

Success under COFI requires systematic preparation, ongoing monitoring, and a fundamental commitment to treating customers fairly in every aspect of your business.

Core Principles

  • Customer-centric decision making
  • Transparency in all communications
  • Fairness and equitable treatment
  • Professional accountability
  • Competency and expertise
  • Suitability of recommendations

Impact on Your Practice

COFI will affect every aspect of how you operate as a financial service provider.

Accountability

Personal accountability for key individuals and senior management.

Conflict Management

Robust systems to identify, manage, and disclose conflicts of interest effectively.

Competency Standards

Stricter professional requirements including ongoing training and demonstrated expertise.

Product Oversight

Regular reviews to ensure suitability and monitor product performance.

Enhanced Documentation

Comprehensive record-keeping for all client interactions, advice processes, and business decisions.

Client Communication

Clear, plain language requirements with enhanced disclosure obligations.

Key Requirements

Six critical areas every FSP must address for COFI compliance.

1

Conduct Risk Management Framework

Implement comprehensive conduct risk management with board oversight, clear policies, and regular monitoring.

2

Customer Due Diligence

Enhanced KYC processes to understand client needs, circumstances, and objectives before making recommendations.

3

Suitability Assessments

Documented suitability analysis demonstrating how advice aligns with client situations and goals.

4

Fair Outcomes Monitoring

Systems to measure and track customer outcomes, ensuring products deliver expected value.

5

Complaint Resolution

Efficient, fair complaint handling with root cause analysis to prevent recurrence.

6

Remuneration Disclosure

Clear disclosure of all fees and benefits. Remuneration structures must not compromise client interests.

Implementation Timeline

Key milestones in the COFI implementation process.

1
Q1 2025

Act Commencement

COFI Act officially comes into force. Initial requirements take effect and FSPs must begin formal compliance preparations.

2
Q2-Q3 2025

Transitional Period

Grace period for updating systems, policies, and procedures. FSCA provides guidance and conducts industry consultations.

3
Q4 2025

Full Compliance

All FSPs must demonstrate complete COFI compliance. FSCA begins active supervision and enforcement.

4
2026+

Ongoing Supervision

Regular inspections, thematic reviews, and enforcement actions. Continuous adaptation to evolving standards.

Start Your COFI Assessment

Take our comprehensive assessment to identify gaps and create your roadmap to full compliance.

Available 1st March 2026 Sign In

Frequently Asked Questions

When does COFI take effect?

The COFI Act is expected to commence in Q1 2025 with a transitional period through the year. Full compliance will be required by the end of 2025.

How is COFI different from FAIS?

COFI takes a more comprehensive approach to market conduct, emphasizing customer outcomes and proactive conduct risk management rather than just licensing and basic conduct standards.

Will I need to renew my license?

Existing FSPs won't need to reapply for authorization, but you must demonstrate compliance with new COFI requirements including updated policies and enhanced governance structures.

What are the penalties for non-compliance?

COFI introduces significant penalties including fines up to R50 million or 10% of annual turnover, license suspension or withdrawal, and potential criminal prosecution in serious cases.

How can FSP Business 4.0 help?

We provide comprehensive COFI readiness assessments, compliance toolkits, policy templates, training programs, and ongoing monitoring systems to help you achieve and maintain compliance efficiently.