Are you truly ready for the next FSMA audit?

Compliance in practice: more than just a checklist

The role of the insurance broker is evolving. In addition to offering personalized advice and managing client portfolios, both regulators and clients now expect a transparent, well-documented, and up-to-date client file.

Each year, the FSMA increases its scrutiny of advisory quality, documentation requirements, and client transparency. Additionally, MiFID regulations impose specific obligations for investment advice — such as suitability assessments, the know-your-customer principle, and clear reporting.

An incomplete file is no longer just a risk for sanctions — it is also a threat to client trust. Compliance is no longer a mere administrative requirement; it is a core component of being a professional broker.

FSMA obligations: what is expected?

Brokers must now comply with a wide range of rules imposed by the FSMA — based on the European MiFID directive. The key obligations include:

• Know Your Customer (KYC): Accurate and complete identification and profiling of the client
• Document retention: Records must be available for several years for audits and reviews
• Suitability and appropriateness tests: Is the advice aligned with the client’s profile?
• Reporting: The motivation and rationale behind advice must be clearly documented
• Transparency and follow-up: Clients must be informed about costs, risks, and ongoing service

On paper, these obligations seem manageable. In practice, however, many firms face challenges such as:

• Fragmented data across different insurers
• Manual processing and follow-up of obligations
• No central control or automated overview
• Limited scalability as the firm grows or adds team members

Why traditional systems fall short

Many broker firms still rely on a mix of Excel, PDFs, emails, and custom folder structures to manage client files. This may work for a small portfolio, but becomes unsustainable when:

• The team grows
• Multiple insurers and CRMs are in play
• Audits or FSMA inspections are imminent
• Clients become more assertive and demanding

Additionally, there’s often a lack of clarity about who is responsible for what, whether a file is complete, or whether the firm is truly compliant at the time of review. This creates a persistent sense of uncertainty around compliance — undermining productivity and client relationships.

How myFaro transforms compliance in practice

myFaro’s compliance features were developed with one goal: to make compliance manageable in the day-to-day reality of the modern broker. Not just another tool, but a smart “enablement layer” built on top of your existing systems.

Here’s how myFaro helps:

For example

A brokerage firm with 750 active clients previously used Excel and email to manage advisory files. After switching to myFaro, they discovered that:

• 18% of files lacked an up-to-date risk profile
• 27% had no documentation of the most recent investment advice
• 11% contained documents that exceeded the legal retention period

Within two weeks, the team had a complete overview, open items were tackled in a structured way, and confidence in audit readiness significantly increased.

Compliance as a strategic advantage

While many firms see compliance as a burden, forward-thinking brokers recognize it as a competitive edge. Those who optimize today are building:

• Stronger client relationships
• A more professional reputation
• Greater internal efficiency
• A more robust market position

myFaro helps you take that step — without extra tools, without complex integrations, but with full control over what truly matters.

Ready to experience just how easy compliant working can be?
📽️ Request a demo or contact our team for a no-obligation conversation.
Together, we’ll make sure you’re fully prepared for the next FSMA audit — and much more beyond that.