Tag Archives | General Code of Conduct


Adviser not liable for Sharemax investors’ loss, says tribunal

The Financial Services Tribunal (FST) has upheld a reconsideration application by an FSP whose clients invested in a Sharemax-managed property syndication scheme, saying his provision of inappropriate advice did not necessarily mean he was liable for their loss. Last month’s ruling brings to three the Sharemax-related determinations set aside by the FST since September last […]

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Nonku Tshombe V3

FAIS Ombud warns FSPs about four areas of non-compliance

The FAIS Ombud has warned that complaints about the rejection of homeowner’s insurance claims will be referred to the FSCA for investigation if she believes the disclosure at inception is wanting. This was one of four “problem areas” red-flagged by Advocate Nonku Tshombe in her 2020/21 annual report. Tshombe was referring to complaints where insurers […]

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Complaints Management Framework

Complaints Management Framework – Effective date for full implementation

The General Code of Conduct was significantly amended in June 2020. This is particularly true of Section 17 which requires the establishment of a complaints management framework. Most of the new requirements had to be implemented by 27 December 2020. These changes included the actual establishment of the framework the allocation of responsibilities for effective […]

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Tis the season to be jolly – FSCA publishes various regulatory updates

There are actually three certainties in this world: Death, taxes and major regulatory updates in December every year, as the industry starts winding down for the silly season. One of these is the proposed amendments to the General Code of Conduct for Authorised financial services providers and representatives of 2003. “The main purpose of the […]

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Client Confidentiality

Client Confidentiality when transferring business A recent Moneyweb article highlighted the importance of treating client information with great circumspection. A product house included personal client information in court documentation in an urgent application. The article pointed out that these documents are available to the public, and could have been used for the wrong purposes. Fortunately, […]

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Do what I say

Complaints handling is set to become a major measure of your commitment to the fair treatment of clients, or TCF as it has become known. The final proposals for implementation of changes to the General Code of Conduct reiterate this. There is now an official definition of what a complaint is: “complaint” means an expression […]

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To fee, or not to fee?

The right to charge additional fees, and particularly “admin” fees, has long been a bone of contention, particularly in the short-term industry where it is particularly prevalent. The latest draft General Code of Conduct (GCoC), which closed for industry input yesterday, contains three new paragraphs which aims to provide clarity on this thorny issue. 3A. […]

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Sign-on bonus and other Penalties

Section 3A of the General Code of Conduct came into operation on 4 December 2014. It decreed that “… No person may offer or provide a sign-on bonus to any person, other than a new entrant, as an incentive to become a Category I provider that is authorised or appointed to give advice.” Two transgressions linked to […]

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POPI and the General Code of Conduct

An article in FAIS Newsletter 20 titled Bulk transfers by FSPs and Insurers contains a section under the sub-heading: Protection of Personal Information Act: Furthermore the FSPs are required to comply with Protection of Personal Information (“POPI”) Act, which demands identifying Personal Information and taking reasonable measures to protect the data. This will likely reduce […]

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