A settlement facilitated by the FAIS Ombud highlights that full disclosure of product terms does not, on its own, satisfy suitability obligations under the Code of Conduct.
Consumers must understand product terms and ensure documentation accurately reflects agreed guarantees and beneficiaries.
A drone listed on a policy wasn’t insured for its main purpose. This case is a reminder that exclusions can cancel out the protection you think you’ve bought.
The FSCA imposes a R197m fine on Medbond Insurance Brokers and its principal, whom it debarred for 30 years.
Failing to follow FAIS-mandated policy-renewal procedures and poor record-keeping constituted a serious regulatory breach that justified dismissal.
Determination says a ‘reasonable broker’ would supplement a bulk email with an email or phone call to ensure the client is aware of new conditions.
Early preparation for COFI will give firms a competitive edge and help to avoid the compliance scramble seen during FAIS implementation.
The material change from a co-policyholder to a sole policyholder should have alerted the FSP of the need to review the policy.
An FSP failed to ensure that a client was made aware of the implications of modifying his policy, resulting in an insurance claim denial.
A complaint over a claim for stolen jewellery prompts the FAIS Ombud to emphasise the importance of maintaining a proper record of advice.
The Financial Services Tribunal dismisses a reconsideration application by a former representative who claimed a client e-signed documents in person.
The agent repeatedly deviated from the approved product script. Previous warnings and documented missteps played a key role in the decision.
FSPs must ensure their representatives operate strictly within their authorised product categories and according to the client’s mandate.
The Tribunal’s decision underscores that financial advisers’ duties are limited to the specific terms of their engagement.
The former owner of Gundo Wealth Solutions has been fined R3 million and debarred for a decade for brokering investments into VBS Mutual Bank.
The rep claimed he never meant to harm the FSP, but the FST found his actions violated the FAIS Act and demonstrated a lack of integrity.
The complainant was aggrieved because he received R470 000 from the R700 000 put into an investment plan with income.
