Zaman added that these advisers are increasingly looking to outsource their investment solutions in the run up to South Africa’s Retail Distribution Review (RDR), which will look to improve client/adviser relationships in a similar manner to the UK’s review in 2012, which saw advisers switch from a commission-based to a fee-based remuneration model.
“It’s about looking at how you can work with advisers at a time when they are having change forced upon them by the regulatory environment,” he said.
“In the international space we have worked through a variety of versions of RDR, and this wealth of experience gives us a competitive edge.”
Strong record
According to Bateman, business development director at BMI, interest in the company’s offering has so far been strong in the country, helped by its strong existing track record in other countries around the world, such as the UK.
“Having the licence has so far been the key constraint, despite great interest from advisers,” he said. “We have had a range of advisers across the country who are interested, and now we can take this forward. We now need people to know that the door is open.”
He added that a further draw to South Africa has been the relaxation of foreign exchange restrictions, which now allows consumers to invest up to R10m (£539,000, €750,000, $822,000) offshore per year.
“This allows clients to look at investing offshore in a far more substantial manner, whereas previously advisers were constrained as to how much could be invested abroad. The market has become more exciting,” he said.
He added that South African investors are also becoming more internationally minded, due in part to the increasing amount of information they are receiving about offshore investment opportunities.
“There is a lot more interest in accessing global markets. A lot of people are saying ‘how do I invest in US equities’, for example; not only can we offer managed portfolios at the lower end, we can offer bespoke opportunities for the high end clients.”
