Rules on proceedings of the office of the Ombud for FSP’s

Subject matter of complaints

The complaint

• Must fall within the ambit of the FAIS Act and the Ombud Rules;
• The person against whom the complaint is made must be subject to the Ombud Rules;
• The act or omission complained of must have occurred at a time when the Ombud Rules were in force – on or after 30 September 2004.
• The respondent (FSP) must have failed to address the complaint satisfactorily within 6 (six) weeks of its receipt.
• The claimant must lodge the complaint within 6 (six) months of receiving the notice of dismissal of claim by respondent (FSP).

Types of complaints

• A complaint constituting a claim for a monetary award must relate to the redress of financial prejudice or damage suffered or likely to be suffered by the complainant;
• Monetary claims are limited to R800 000, unless the respondent has agreed in writing that the limitation being exceeded, or the complainant has abandoned the amount in excess of the limit;
• Also complaints relating to a financial service rendered by a non-licensed FSP or by a person acting on his/her behalf;
• Referrals by the Registrar of Financial Service Providers;
• Must not relate to the investment performance of a financial product, unless such performance was guaranteed or such performance appears so deficient as to raise a prima facie presumption of misrepresentation, negligence or maladministration.

Submission of a complaint

• The complainant must endeavour to resolve the complaint with the respondent before submitting a complaint with the Ombud;
• The complaint must be submitted to the Ombud within 6 (six) months of the final response from the respondent;
• The complainant must satisfy the Ombud of having endeavoured to resolve the complaint with the respondent, and must submit the final response of the respondent and the complainant’s reasons for disagreeing with the response;
• The complaint must be in writing;
• Accompanied by available documentation;
• Subsequent to lodging a complaint, the complainant is entitled to submit further facts, information or documentation.

Response by respondent

• The Ombud informs the respondent of the complaint submitted;
• The respondent may respond to the complaint;
• The respondent may submit any fact, information or documentation in relation to the complaint;
• The respondent may be required to discuss the complaint with the Ombud;
• The respondent must act professionally and reasonably and co-operate.

Summary dismissal of complaints

• The Ombud may dismiss a complaint if: –
• The complainant does not have any reasonable prospect of success;
• The respondent has made an offer which is fair and reasonable and which is open for acceptance by the complainant;
• The matter has been previously considered by the Ombud;
• The essential subject of the complaint has been decided in court proceedings;
• The subject of the complaint is pending in court proceedings;
• The complaint or relief sought is of the nature that the Ombud can be of no assistance to the complainant;
• The complainant fails to co-operate;
• The complaint is pursued in a frivolous, vexatious or abusive manner.

Time limits

The parties to the complaint must honour time limits fixed by the Ombud.

Case fees and costs

• The respondent must pay case fees to the Ombud not exceeding R1000;
• The Ombud may grant costs and interest against the respondent or the complainant.

Appeals

Application for leave to appeal

• A party against whom the Ombud has made a determination may apply to the Ombud for leave to appeal;
• In writing within 1 (one) month of the date of the determination;
• Setting out the grounds of the application.

General

Prescription: a complaint cannot be lodged after 3 (three) years of the occurrence of the complaint, unless the complainant was unaware of the occurrence of the act by the respondent.

CONTACT DETAILS

Any complaints may be sent to the Quill Consulting Services (Pty) Ltd complaints department. complaints@qcs.capitallegacy.co.za