Subject Title - INSETA

The Ombud for Financial Services Providers can officially accept acomplaint for investigation if the complaint relates to a financialservice that was rendered on or after 30 September 2004. 168The complaint must not constitute a monetary claim in excess ofR800 000.00 for a particular kind of financial prejudice or damage,unless the respondent has agreed in writing to this limitation beingexceeded, or the complainant has abandoned the amount in excessof R800 000.00. 169If a case cannot be settled through mediation or conciliation, theOmbud for Financial Services Providers or the Deputy Ombud forFinancial Services Providers may issue a determination.A determination has the same legal effect as a judgment of a court.16.3 OBLIGATIONS OF THE FSP REGARDING INVESTIGATIONS BYTHE FSB AND OMBUD FOR FINANCIAL SERVICESPROVIDERSThe management and oversight duties include the management of processesto ensure that the business cooperates in the case of an investigation by theOmbud or the FSB.FSPs must try to resolve complaints and disputes with clients first and if thereis no agreement or settlement, the client can approach the Ombud. The FSPmust provide adequate contact details of the Ombud to clients (Refer to thediscussion in 8.7 above, relating to complaints handling.)The Ombud will typically consider a complaint in the following circumstances:If the complainant alleges that a Financial Services Provider or itsrepresentative has:contravened or failed to comply with the provisions of the FAIS Actand as a result thereof the complainant has suffered or is likely tosuffer financial prejudice or damage;wilfully or negligently rendered a financial service to the complainantwhich has caused prejudice or damage to the complainant or which islikely to result in such damage;treated the complainant unfairly.168 Section 27(3)(a)(i) & 4(a)(iii) of BN 81 of 2003169 Section 4(c) of BN 81 of 2003264 © INSETA - Section 1 12a