Secondary

FAIS Ombud Discontinues Case Fees

The following announcement was published on the home page of the FAIS Ombud:

In terms of the Financial Advisory and Intermediary Services Act, read with Rule 9(a) of the Rules of Proceedings of the Office of the Ombud for Financial Services Providers, the FAIS Ombud may charge a case fee of up to R1000 once a matter has been accepted for investigation. This has always meant that the Ombud had to exercise some discretion as to whether to charge the case fee.

Effective 10th September 2012, the FAIS Ombud will no longer charge a case fee.

Please note that those respondents against whom case fees were levied prior to 10th September 2012 will still be liable for payment.

Should you require further information, please contact Ms Chantel van Wyk on 012 4709080 or chantel@faisombud.co.za.

This matter was a bone of contention for those respondents who were found “not guilty”, yet held liable for the case fee.

Please also note that the legislation above reads “…the FAIS Ombud may charge a case fee of up to R1000…”. The decision to stop charging the case fee could, of course, be reinstated as easily as it was removed.

Let’s hold thumbs that this trend continues in some other areas where a bit of common sense is sorely needed.

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