The Financial Services Board (FSB) has appointed the first ombudsman for financial services providers in terms of the Financial Advisory and Intermediary Services (FAIS) Act.
Attorney Charles Pillai, director of the Pretoria office of the Legal Resources Centre, will have as his first priority the staffing of the Office of the FAIS Ombud, which officially opens its doors in September.
The office provides a dispute resolution mechanism for client complaints in the financial services industry.
Uppermost on the agenda is a national consumer education drive to create awareness of the rights and responsibilities of financial services consumers.
"It is important that people understand the function of the FAIS Ombud," Pillai says. It is not a consumer watchdog, but a mediator and arbitrator that works with industry and consumers alike to ensure integrity and justice, while maintaining its independence."
Among other things, the FAIS Act requires financial advisors to meet certain minimum requirements to continue practising.
The Act`s mechanism for consumer protection is complaint-driven rather than audit-driven.
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