CODE OF CONDUCT & PROFESSIONAL MARKET PRACTICE
1. Purpose & Statutory Framework
Raad Financial Services is committed to maintaining the highest ethical, legal, and professional standards in delivering financial advisory and intermediary services. This Code of Conduct outlines the principles, statutory requirements, and practical standards governing all directors, financial planners, employees, and representatives of Raad Financial Services.
This Code is formulated in full alignment with the provisions of Namibia's Financial Institutions and Markets Act, 2021 (FIMA Act, No. 2 of 2021) and the supervisory directives administered by the Namibia Financial Institutions Supervisory Authority (NAMFISA). It establishes a binding operational framework designed to foster public trust, protect client interests, and ensure full compliance with Namibian financial laws.
2. Ethical Foundations & Core Values
Our commitment to client service and ethical market conduct is built upon two core frameworks:
2.1 The Rotary Ethical 4-Way Test
In every advisory interaction, decision, and recommendation, all representatives of Raad Financial Services apply the 4-Way Test:
· 1. The Truth: All communications, financial analysis, and disclosures must be transparent, accurate, and completely honest, preventing surprises or misrepresentation.
· 2. Fairness: All financial options, fee structures, and product evaluations must give the client an even, fair, and cost-effective path toward reaching their financial goals.
· 3. Goodwill and Better Friendship: Business interactions must foster enduring trust, peace of mind, and strong professional relationships built on mutual respect.
· 4. Beneficial to All Concerned: All actions and advisory solutions must be in the demonstrable best financial interest of the client.
2.2 Operating Values
· Accountability: We accept full responsibility for the quality, accuracy, and legal compliance of our advice.
· Integrity: We uphold uncompromising moral and ethical standards in every transaction.
· Transparency: Clients will always be fully informed regarding costs, risks, product terms, and potential returns.
· Urgency & Availability: We respond promptly to client needs, inquiries, and review requests.
3. Mandatory FIMA Conduct Pillars
Under the FIMA framework, Raad Financial Services enforces five core pillars of market conduct:
· Fit & Proper Standards: All advisors and key operational personnel must satisfy continuous fitness and propriety requirements, including regulatory competence, continuous professional development (CPD), and personal integrity.
· Fiduciary Duty & Client-First Standard: Advisors must act with reasonable care, skill, and diligence. Advisory recommendations must always put client goals ahead of firm profitability or advisor commission incentives.
· Plain Language & Transparent Disclosure: Clients must receive clear, unambiguous written explanations of financial contracts, fee breakdowns, risk factors, and product provider relationships before entering into any transaction.
· Conflict of Interest Management: Any potential or existing conflict of interest—financial, personal, or corporate—must be disclosed in writing to the client immediately. Independence and objectivity must be strictly maintained.
· Confidentiality & Data Protection: Client personal, medical, and financial records must be secured using advanced document controls. Data will never be disclosed to third parties without explicit written client consent, except as mandated by Namibian law.
4. The 6-Step Financial Advisory Framework
To ensure consistency, regulatory compliance, and maximum quality, all client consultations must follow our structured 6-step advisory cycle:
· Step 1: Initial Contact ― Establish parameters, outline service scope, provide mandatory initial statutory disclosures, and confirm meeting schedules within 24 hours of referral or inquiry.
· Step 2: Fact Finding ― Gather complete, verified personal and financial client data, defining explicit short-term and long-term financial goals, risk profile, and existing coverage.
· Step 3: Data Analysis ― Conduct technical assessments of the client's current estate, tax position, cash flow, retirement readiness, and insurance gaps to formulate tailored strategies.
· Step 4: Recommendation ― Prepare and present a detailed written financial plan outlining specific product options, fee breakdowns, FIMA statutory compliance disclosures, and projected outcomes.
· Step 5: Implementation ― Obtain informed client written consent, complete required statutory paperwork, execute transactions accurately, and confirm placement with relevant product providers.
· Step 6: Ongoing Review ― Conduct scheduled annual reviews to evaluate portfolio performance, update financial strategies for changing life circumstances, and maintain alignment with goals.
5. Scope of Services & Product Intermediary Standards
Raad Financial Services provides comprehensive, holistic financial planning solutions across key domains:
· Life & Risk Assurance: Tailored risk protection including life, disability, dread disease, income protection, key person assurance, and bond cover.
· Investment & Wealth Management: Local and offshore unit trusts, portfolio management, linked life annuities, and tax-efficient wealth accumulation.
· Retirement Planning: Retirement annuities, pension/provident fund structuring, living annuities, and post-retirement cash flow management.
· Estate Planning & Trusts: Drafting compliant wills, setting up family and investment trusts, and estate duty minimization strategies.
· Employee Benefits & Healthcare: Group life schemas, medical aid solutions, and employee wellness planning.
6. Governance, Enforcement & Resolution
Adherence to this Code of Conduct is mandatory for all personnel. Raad Financial Services maintains strict internal compliance controls and dispute resolution procedures:
· Compliance Monitoring: Regular internal audits are conducted to ensure client files, advisory records, and disclosures strictly comply with FIMA standards.
· Disciplinary Measures: Non-compliance, willful non-disclosure, or breach of fiduciary duties will result in immediate internal disciplinary proceedings, potential termination, and mandatory reporting to NAMFISA.
· Client Complaint Resolution: Clients have the right to transparent recourse. Complaints regarding advice or service must be submitted in writing to management. Issues will be acknowledged within 24 hours and investigated thoroughly. If unresolved, clients may escalate grievances to the Office of the Financial Services Adjudicator / NAMFISA.
7. Commitment & Sign-Off
This Code reflects Raad Financial Services' unyielding dedication to ethical excellence, transparent practice, and regulatory compliance under Namibian law.