Subject Title - INSETA

PurposeChapter 16 is the last part of this study material and introduces you to therole and power of the Ombud for Financial Services Providers (FAIS Ombud).The Ombud for Financial Services Providers (FAIS Ombud) can also act as theStatutory Ombud. We look at the function of the Ombud, the power he hasand the obligations of an FSP when the Ombud investigates a complaint.16.1 THE ROLE OF THE OMBUD FOR FINANCIAL SERVICESPROVIDERS (FAIS OMBUD)The FAIS Act 166financial services.makes provision for the appointment of an Ombud forThe function of the Ombud for Financial Services Providers (FAIS Ombud) is:to resolve disputes relating to the rendering of financial services byproviders where they have either:failed to comply with the FAIS Act; orwhere as a result of either wilful or negligent conduct by the provider,the client has suffered or will potentially suffer prejudice or damage.The objective of the Ombud office is to provide a fair, unbiased, reasonable,economical and expeditious relief to the ordinary person in the street at nocharge. 167The Ombud for Financial Services Providers is a body created through law.There are other voluntary ombudsmen created by the financial servicesindustry who also deal with financial disputes – such as the Ombudsman forBanking services.Since 1 April 2005, the Ombud for Financial Services Providers was grantedthe authority to act as Statutory Ombud in terms of the Financial OmbudSchemes Act 2004 (Act No. 37 of 2004) (“FSOS Act”).166 Sections 20 to 32 of the FAIS Act167 Section 20(3) of the Act262 © INSETA - Section 1 12a