Does A Napkin Cut It In Today's Compliance Environment?

I had a very interesting call with an "advisor" today who stated that the back of a napkin was sufficient compliance when discussing the suitability needs of his clients. As he spoke, I wondered if he would back up that napkin and if the illustration accurately reflected the pricing unique to that client. I wondered if this magical napkin could highlight the differences between guaranteed, reduced and total cash values. As he spoke, I allowed my mind to wandered even more as I imagined FINTRAC storming through the door as this "advisor" feverishly tries to defend his napkin with muffin crumbs and coffee stains on it.

This experience made me reflect on advisors who are not willing to invest in their process or their practice. I fear they may ruin the business for all the great advisors out there and force consumers to look to robo-advisors for service.

Recently, I was speaking with Lawrence Geller who pointed out, "You are not judged by the compliance standard at the time you sold the policy but at the time when it is reviewed."

Think about how you approach a sale and how you document the steps you performed, in the event of an audit do you have all the material you used to make sure your client had the absolute best product for their needs. In an audit, it's not just about your intent they are measuring it's your process.

Advisors Serious About Compliance

For advisors who are serious about compliance, I want to share a few ways Life Design Analysis can help you stay compliant:

  • Needs Analysis Tools (personal and business)
  • needs

  • Product Suitability Analysis (transparency to your client about their options)
  • suitability

  • Reason Why Templace / Advisor Disclosure (customizable area to include in every report)
  • disclosure

  • Manage Policy Milestones (import your block and see critical opportunities)
  • manage mine

  • Present Value / Future Value Calculation (show time value of money)
  • pv

  • All your presentations to your clients backed up with multiple levels of redundancy, hosted entirely in Canada (protected by armed guards 24/7)
  • cloud

Want an even deeper dive on how Life Design Analysis can turn compliance into an asset, not a liability, Check our latest blog on compliance or watch our Compliance Webinar!


If you are concerned about compliance or interested in learning more about LDA, I encourage you to Sign up Free we will personally reach out to share a few ways you can use our software to enhance the value of your practice, can't wait? book a training session with Jon or Nik from our support staff.