Notes on Due Diligence
Failure to conduct a proper due diligence procedure is often used by the FAIS Ombud to find against financial advisers. Advisers involved in property syndications and Ponzi schemes, in particular, often felt the […]
Compliance and Legislation
FSB 2015 Annual Report
In response to media speculation about possible reasons for the delay in the publication of its 2015 Annual Report, the Regulator published the following press release: The Public Finance Management Act (PFMA) requires […]
The Importance of Material Disclosures
In a determination dated 18 December 2015, the Ombud ordered the Respondents to pay R273 715 to a complainant for “…failure by the financial services provider to update the sum insured under the business […]
Turn a Deaf Ear
There appears to be two kinds of respondents involved in FAIS Ombud determinations: those who attempt to defend themselves, and those who follow a strategy akin to the Lindesfarne song from which the […]
Appeal Board Halves Debarment Period
An appellant received an early Christmas box on 24 December when he appealed successfully against a five year debarment for failing to meet the personal character qualities of honesty and integrity. The FSB debarred […]
Actions flowing from Binder Thematic Review findings
The review focused on 4 main areas: Compliance of binder agreements with regulatory requirements Governance and oversight of binder arrangements Reporting systems and access to information; and Binder fees paid to non-mandated intermediaries […]
The importance of proper record keeping
The Buthelezi determination by the FAIS Ombud, signed on 12 January 2016, highlights again the need for accurate record keeping and the dangers inherent in not completing an application form fully whilst at the client. […]
Debarment of Representatives – now and post FSRA
The current provisions in the FAIS Act, 2002 and the procedures that have been adopted and applied by FSPs, and to some extent by the FSB, regarding the debarment of representatives have led, […]
Proposed Amendments to Competency Requirements
The proposals concerning competency requirements under the new Fit and Proper regulations, published in December 2015, include the following: Experience It is proposed that, in order for a person to be approved as a […]
Tax amendment Bill passed
The tax harmonisation reforms of retirement funds will be implemented from 1 March 2016. What are the changes that will come into effect on 1 March 2016? “The Taxation Laws Amendment Act, 2013 will come into effect […]
Outsourcing Outlook in 2016
The recently published status update on phase 1 of the RDR proposals provided insight into the Regulator’s thinking after receiving feedback from the industry on two proposals contained in the original RDR discussion […]
New Appeal Board Guidelines
The “Guidelines on Proceedings of the Appeal Board” was replaced with a new document titled, “Practice Directions and Guidelines issued by the Chairperson of the Appeal Board”. Some of the important aspects, appearing […]
First CIS Hedge Fund Approved
The FSB approved the first collective investment schemes in hedge funds after announcing its concern a few months ago that it had not received any applications from such schemes. The new schemes, one […]
Court in the Act
Older readers may well remember this as the title of a great song by English folk rock band, Lindisfarne, on their Dingly Dell album. One line in the song reads: So the next […]
Material Terms and Speculative Complaints
There appears to be different views between certain Ombuds on the obligations of various parties in disclosing material terms which are required to assist a client in making an informed decision. It also […]
Investment in Hedge Funds by Pension Funds
The Registrar published a draft notice setting out conditions for investments in hedge funds by Pension Funds. Despite the declaration of a hedge fund as a collective investment scheme, any investment by a […]
Compliance Officer Obligation
I was reading through an earlier Ombud determination when I came across the following: Third respondent goes on to state that the Second respondent met with the clients personally to re-allocate the clients’ […]
