The news is by your side.

So how does the Fais Ombud work?

- Advertisement -


Over the very last decade and a half, South African lawmakers have inked a great deal to try and protect clients inside the financial services industry. The Financial Advisory and Intermediary Services (Fais) Act is among the most significant fecal material legislation designed to cure . because it sets down that can give financial advice, how that advice could be given, precisely what 1 of three entail.

The Act also established a cubicle of your Fais Ombud. This is an independent body that buyers can approach every time they think that the financial service they may have received has not complied using the Act and they’ve suffered some prejudice therefore.

This might include misrepresenting products, not disclosing fees, neglecting to keep proper records, not protecting personal data, not disclosing conflicts appealing, recommending products are certainly not authorized by the Financial Services Board (FSB), or unable to maintain a proper separation of funds. More seriously, it can also include fraud and misappropriation of funds.

Importantly, the Ombud can also be empowered to behave if the financial service has long been rendered by someone who just isn’t authorised to achieve this.

Lodging a complaint

To approach the Ombud, you will need to meet the prerequisites. An example may be that you need to have attempt to resolve the situation using the company or person that you’re complaining about. If only they’ve already did not address it satisfactorily within six or seven weeks are you able to then go for the Ombud. And you just should do so within several months of acquiring the final response from their store.

The second consideration is that you have a couple of years in which to submit a complaint towards the Ombud. That point on, the Ombud cannot legally investigate it.

There is actually a leeway granted if you’re able to demonstrate that you just became concious of the difficulty sometime after it had actually happened. Will have to have several years from the minute that you just became aware, or “ought reasonably to get become aware”, whichever is earlier.

Thirdly, you can’t approach the Ombud should you have already lodged the matter in court. In other words, you can’t pursue both a lawsuit and also a complaint while using Ombud about the same issue.

The Ombud does however involve some to discretion to figure out that a complaint would be better handled by the courts. If this can demonstrate reasonable cause for the process, it might decline to look into a subject and refer the complainant to your courts instead.

Finally, you can’t approach the Ombud if you are seeking monetary compensation higher than R800 000. Should the financial prejudice you think that you’ve suffered is a lot more , you will either should forego the actual or grab the matter straight to the courts.

The exception to that is that the party that you are complaining about agrees in some to be charged a lot more than R800 000. That, however, is definitely an unlikely prospect.

Importantly, the complaint cannot relate to the performance of an financial product, unless that performance was guaranteed or Ombud decides how the performance was really deficient it points to misrepresentation, negligence or maladministration.

The process

Once it has received a complaint making both sides mindful of it, the Ombud should first try to achieve damages agreement. Quite simply, it can try and mediate to locate a solution that could be acceptable to everyone.

It are able to do this by designing a proposal of their own and asking every one of the parties when they will take it. Should they all do, this would become a final determination.

If however one or more of the parties never agree, they’ll have to provide their reasons in some recoverable format. The Ombud will then must make a binding determination, it may do after further investigation.

The Ombud has the strength to manufacture a monetary award to get a financial loss which has been suffered, and ordering that any financial services provider or its representative take whatever steps it deems appropriate to fix the problem. Furthermore, it has the ability to make other order a court could make.

Significantly, the Ombud can be legally obligated to consult the FSB any information as a result of a complaint which will need the regulator to take action of the own, such as withdrawing or suspending permission.


?Any party against whom the Ombud has created a determination has got the right to appeal. This includes anyone whose complaint has long been dismissed on grounds that they can feel are unreasonable.

The start should be to catch the attention of the Ombud itself, which should want to do within a couple of weeks in the ruling. If ever the Ombud grants leave to appeal, the problem shall be referenced the FSB Appeal Board. It’s a body chaired by a highly skilled advocate or attorney, as well as its members are going to have expert familiarity with the market.

Even if the Ombud refuses leave to appeal, the aggrieved party does have recourse. They are able to apply with the the chairperson in the FSB Appeal Board. Again, this must happen within 30 days and the Ombud must be informed in writing

If of course of this the party remains unsatisfied, some may approach our prime Court.

Oops! We can easily not locate your form.

Leave A Reply

Your email address will not be published.