Consumers trusting their financial advisors

A recent media report on consumers’ trust in their financial advisors requires some clarification and context. The report followed a webinar held on 14 August 2024 concerning the new rules applicable to the FAIS Ombud.

As highlighted in other media reports, the FAIS Ombud Office strongly encourages consumers to do their own research and investigation when being advised on financial products. A great deal of information is available on the Internet, which can help consumers understand the basic elements of a financial product and its suitability for their particular circumstances. This approach will assist advisors in providing accurate advice and recommendations and help consumers avoid potential problems at a later stage.

This approach does not detract from the very important and valuable service provided by financial advisors. The expertise offered by financial advisors and the financial industry as a whole is essential to assisting consumers in navigating the complex financial sphere.

The vast majority of the FAIS Ombud’s complaints are settled by the Financial Services Providers (FSP), and determinations are very rarely necessary. The FSPs settle a large portion of the complaints quickly and directly before any investigation is required. The FSPs are commended for their essential cooperation and support of the FAIS Ombud Office.

We publicly reaffirm our support for the financial industry and our commitment to fostering a collaborative relationship with all stakeholders. The Ombud’s role is to ensure fair treatment and protection for all parties, including consumers, advisors and intermediaries.

Please feel free to reach out if you have any further questions or concerns.

Should you believe that you have been financially prejudiced because of the financial service rendered to you with respect to a regulated financial product, please lodge a written complaint directly with the service provider. If the complaint remains unresolved after six weeks, you can visit our Complaints Portal at www.faisombud.co.za and select ‘Lodge Complaint’. Alternatively, you may submit a complaint in writing to info@faisombud.co.za. You can also call our Client Care Centre at (012) 762 5000 or Sharecall at 086 066 3274 for assistance in submitting a complaint.