I-FSCA yarhoxisa ilayisenisi ye-Luvuyo’ kwinyanga yeThupha emva kokuba uthotho lwezigqibo lufumanise ukuba le nkampani ayiphumelelanga ukuhlawula amabango kwaye yasebenza ngaphandle kombhali ongaphantsi.
New enquiries soared in 2024/25, signalling higher public awareness; yet the number of cases opened fell as many matters were settled without the Ombud’s involvement.
The FSCA revoked Luvuyo’s licence in August after a string of determinations found the firm failed to pay claims and operated without an underwriter.
The funeral provider has faced repeated determinations this year after failing to settle valid claims.
After the High Court remitted the matter, a new Tribunal panel deemed the challenge ‘frivolous and vexatious’.
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.
Luvuyo Burial and Consulting did not pay the claims in full even after the Ombud’s Office intervened.
The beneficiaries waited months to be paid their funeral policy benefits, but they received only partial pay-outs despite undertakings to the contrary.
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.
From misrepresented investment products to overlooked policy details, the cases show how advisers can better serve clients by providing clear, timely, and relevant information.
More than R39m awarded to consumers as complaints settled in their favour increased from 29% to 35% in 2023/24.
Trust is an essential element in the relationship between advisers and consumers, who have a responsibility to verify aspects of their adviser’s credentials and standing, says the Financial Planning Institute.
The Office has sorted out the ‘embarrassing’ backlog of cases John Simpson inherited and has set timeframes for resolving complaints.
The new Rules also incorporate the proposal to raise the Ombud’s jurisdictional limit from R800 000 to R3.5 million.
