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Financial advisory profession enters its outcome-driven era

South Africa’s financial advice profession is entering an outcome-driven era as the COFI Bill reshapes market conduct regulation. Old Mutual Personal Finance says the shift will reward advisers who prioritise client outcomes, ethical advice and strong governance rather than relying on traditional compliance processes.
Written by
Lizl Budhram
Published on
March 20, 2026
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Old Mutual Personal Finance has declared its full support for the Conduct of Financial Institutions (COFI) Bill, describing it as a necessary evolution for the financial advice profession.  

The legislation does not introduce new values to South Africa’s financial advice sector but rather codifies principles that quality financial advisers have long upheld.

For professionals who have built their businesses on integrity, substance and consistent client outcomes, COFI represents alignment rather than disruption. It rewards what good financial advisors are already doing.

The Bill as a milestone in the profession’s evolution. It shifts the emphasis from process-driven compliance to demonstrable value for clients. Advisers who have embraced the spirit of the Financial Advisory and Intermediary Services (FAIS) Act, will find COFI to be a natural progression of the standards they already uphold.

It signals a profession that is ready to be judged by the impact of its advice, not just its intentions. And if you’re already doing things well and doing right by your customer, this is going to be easy for you. COFI isn’t a reset. It’s a maturity test.

From rules to results - COFI consolidates multiple conduct-related laws into a single, outcomes-based framework. The Bill modernises regulation by replacing fragmented, rigid rules with a unified, principle-based system that applies equally across all financial institutions and aligns with international best practice.

The regulator is trying to counter tick-box behaviour. Some people have fallen into the habit of following the steps without asking whether those steps actually deliver the right outcome for the client. COFI changes that.

The shift brings a clearer focus to the real purpose of advice. The question we should always be asking is whether the client is genuinely better off as a result of the advice they’ve received.

The risk readiness test - Once enacted, the COFI Bill will replace the conduct provisions in various existing laws and eliminate duplication and conflicting regulatory provisions. This will effectively empower the FSCA to oversee market conduct across the board while reinforcing the core principle of treating customers fairly.

“COFI is not a reset for the advice profession, it is a maturity test that rewards advisers who can demonstrate real value and meaningful outcomes for their clients.”

Lizl Budhram
Head of Advice at Old Mutual Personal Finance

The Bill is underpinned by four key pillars:

  1. Activity-based regulation: Similar financial activities will be regulated in the same way, regardless of who provides them.
  1. Principles-based framework: Regulators will set intentions and outcomes rather than prescribing exact steps, offering institutions greater flexibility.
  1. Outcomes-focused supervision: The emphasis is on delivering fair customer outcomes, not just managing compliance.
  1. Risk-based and proportionate regulation: Institutions will be supervised based on the risk they pose to customers and the sector, ensuring fairness and practicality.

There’s a strong focus on how much risk exists within a financial advisor’s practice because the regulator wants to protect clients. If your business is well managed, you’re likely to experience a light-touch approach. But where the regulator sees red flags, the engagement will be far more intensive.

Reclaiming the advisor’s role in society - Beyond regulation, COFI as an opportunity to reinforce the broader value of professional financial advice in South Africa. For a financial advisor’s practice to prosper, it must create value for everyone involved. That includes the financial advisor, their staff, the industry and the client.  

“When financial advisors do well, families and communities gain security. That is how long-term trust is built,” says Prabashini Moodley, CEO of Old Mutual Savings and Investment Cluster.

“If we want to transform the industry meaningfully, access to quality advice cannot be limited to a few. COFI helps shift the profession towards a future where every South African, regardless of income, can benefit from ethical, well-governed financial guidance. That’s how we build resilience and lasting prosperity.”

Lead the change, do not wait for It - Old Mutual Personal Finance has already begun preparing financial advisors through readiness assessments and ongoing engagement with regulators. Once the Bill is finalised, structured training programmes will follow to support meaningful implementation.

We are not waiting to be told what to do. We are helping financial advisors prepare now, because the most effective way to manage regulatory change is to lead it.

My guidance to financial professionals is clear. Engage early. Review your business honestly. Strengthen governance and systems. Ensure your client outcomes are as robust as your compliance framework.

In an outcome-driven era, it will not be the financial advisors who react fastest who succeed. It will be those who have consistently done the right things and can demonstrate it with confidence.

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Old Mutual Insure Limited is a licensed FSP and Non-Life Insurer.

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