Subject Title - INSETA

influence the objective exercising of obligations to the client orprevent the rendering of financial services in an unbiased and fairmanner.Ethical conduct in the financial services industry begins with theindividual taking responsibility for his actions and following therequirements for complying with the legislations.There are certain steps to be taken when giving advice to clients.These steps include:– establishing the suitability of products and services; and– recording the advice given.Although risk management is undefined in the General Code, itincludes elimination of risk to clients through theft, fraud, otherdishonest acts, poor administration, negligence, professionalmisconduct or blameworthy oversights.Contingency planning is required in order to ensure that clients willbe serviced if the business is terminated for any reason.FSPs must meet certain insurance requirements.The General Code prescribes the principles applicable to advertisingand this includes adequate warnings about products in certaincircumstances.Direct marketing is prevalent in the SA financial services industry andit is important that there are adequate measures to ensure thatclients get all the information they need, to make informed decisions.The General Code requires that direct marketers adhere to certainadvertising principles. The gist of these principles is to ensure thatthere is adequate disclosure to clients and prospective clients.Disclosure includes the steps to be taken when a direct marketerprovides advice for or on behalf of someone else, product informationand information about the product supplier.The manner in which complaints must be handled is prescribed in theGeneral Code and there is an onus on the FSP to ensure that theinternal complaints resolution processes include:– a written complaints policy, accessible to clients;– acknowledgement of complaints;– appropriate redress and investigation.Clients have certain rights to terminate agreements with FSPs.FSPs must ensure that there are adequate steps taken whenrepresentatives terminate their arrangements with the FSPs, in orderto protect clients.166 © INSETA - Section 1 12a