RE5 Topic 2 Quiz 2

Please complete the sentence. Mary a, a client of XYZ Brokers and authorised FSP, has referred a complaint to the FAIS Ombud for possible resolution. In terms of the FAIS Act, the FAIS ombud may charge a case fee to-

Big Investments, an authorised FSP received a complaint from one of their clients, Mr X. alleges that due to improper advice, he suffered a loss of R1, 4 million. Big Investments does not agree that the loss was caused by improper advice. What must be done in order for this complaint to be considered by the FAIS Ombud?

Which of the following statements with regard to the appeal against a determination by the FAIS Ombud are correct?

Tracey was advised to invested in a property syndication scheme on advice of BS Financial Advisors, which operated on a suspended license.  FSCA did investigate the dealing of BS Financial Advisors and a case is referred to a court of law, especially with regard to advice that was given during this period of suspension. Tracey was listed as a possible victim in the court case. However, Tracey thought it best to also refer the matter to the FAIS Ombud.

What is  FAIS Ombud permitted to do in this regard?

The Ombud must not proceed with an investigation unless the following stipulations has been complied with. Please choose the incorrect answer.

i). The Ombud must inform all interested parties to the complaint of the receipt of the complaint.

ii). The Ombud must only inform the respondent to the complaint of the receipt of the complaint.

iii). The Ombud must afford only the respondent to submit written responses to the complaint.

iv).The Ombud must afford all interested parties to submit written responses to the complaint.