The History of Masthead
On 10 June 2004 Old Mutual (OM) announced the creation of Masthead Distribution Services. Masthead was an initiative aimed to ensure that independent brokers would have all the security and assistance they needed to run a successful and sustainable financial practice, while remaining independent.
The Initial Concern - There had been speculation that the introduction of the Financial Advisory and Intermediary Services (FAIS) Act and the Financial Intelligence Centre Act (FICA) would mean the death of the small broker. The new company was launched to provide support & assistance to independent brokers facing these significant changes. Masthead offered these brokers a free service to handle licence applications, inspect their practices, be their compliance officer, submit annual audits and assist client complaints through an ombudsman.
Long Term Goals - While the initial concern was compliance with the new FAIS Act, the long term goal of Masthead was to help independent brokers to stay in business profitably. Masthead thus developed a range of value-add services that would help independent brokers to grow and improve their practices.