Tag Archives | FAIS Ombud


Always obtain and capture all the client information

FAIS Ombud Settlement – Always obtain and capture all the client information One of the settlements discussed in the latest FAIS Ombud Annual report also puts the emphasis on the disclosure of client information. Disclosure of medical conditions Mr O purchased a credit protection policy subsequent to having bought a vehicle. The main purpose of […]

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Client needs and circumstances

FAIS Ombud Settlement – Always take clients’ needs and circumstances into account Furnishing financial advice means adhering to a set of legislative requirements as well as keeping to certain principles. One of the settlements discussed in the latest FAIS Ombud Annual report puts the emphasis on a few provisions of the General Code of Conduct […]

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FAIS Ombud Settlements

Learn from compliance mistakes made by FSPs An FSP’s interaction with clients must at all times meet the standards set out in the General Code of Conduct. The FAIS Ombud’s Annual report highlighted a few settlements that particularly challenged the adherence to two such standards. The first settlement relates to Section 7 of the Code that […]

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Audenberg Appeal against FAIS Ombud

The FSB Appeal Board recently published its decision at a hearing held on 27 February 2018. The appeal was dismissed, but not before the Board expressed some very concerning comments on the office of the Ombud’s handling of the case. What is its mandate? Under the heading “Risk management”, the latest FAIS Ombud annual report notes: “The […]

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FAIS Ombud 2016/2017 Annual Report

How do the numbers contained in the Ombud’s latest report reflect on its mandate? Complaints received for the period 1 April 2016 to 31 March 2017 came to 10 846, compared to 9 891 for the previous year. • 3 794 (35%) complaints were dismissed. • 4 639 (43%) complaints were referred to alternative forums. • 592 (5.5%) were settled, a decrease from […]

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FAIS Ombud Settlement Cases

Whilst determinations by the Ombud receive wide exposure in the media, settlements are only published in her annual report. This year, there were 1005 settlements and 68 determinations. The settlement amounts in case studies published in the report varied between R5 000 and R570 000. The Ombud notes: “While a decrease was seen in the number of […]

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FAIS Ombud on Short-term Insurance Trends

The 2016-2017 Annual report notes the following trends in complaints received from the public. The number of complaints that relate to short-term insurance policies far exceed those from any other product category of complaints received by the FAIS Ombud, both in the period under review and in previous financial years. Selling on premium FSPs still […]

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FAIS Ombud Actions Queried

Two issues in the recent Phoshera appeal again saw the Appeal Board ask questions about the FAIS Ombud’s decisions. “This appeal is filled with procedural anomalies. First, there is the question of condonation for the late filing of the application for leave to appeal which had been granted by the Ombud, the late joinder of […]

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Fairness in Justice

In a recent decision concerning a Sharemax investment, the FSB Appeal Board said that section 20(3) of the FAIS Act requires the FAIS Ombud to consider complaints in a procedurally fair, informal, economical and expeditious manner, and by what is equitable in all circumstances. Failure to afford a party an opportunity to respond was “inequitable”. […]

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