All's fair in love and war

The two most recent rulings by the FAIS Ombud Charles Pillai send a clear signal to intermediaries Do your homework or face the consequences.

As an observer of all things intermediary and financial services, it strikes me as plain stupidity that any professional person would want to tarnish his or her good name by not doing the work, in these cases, the research before advising clients.

One has to assume that the intermediary acted in good faith in the Global Investments case. To assume anything else would be almost criminal?

What this latest ruling drove home however is that professionals should act professionally. Failure to do so can, and probably will, in this case result in financial hardship, if not ruin for the intermediary.

The question has to be asked whether the remainder of his business will suffer as a result. The short answer is yes. People loose faith very quickly, and especially when it involves their hard earned cash. Simply witness the run on the A2 banks which ultimately resulted in the collapse of Saambou several years ago.

But perhaps what hasnt been explored fully is a persons or a business right to appeal. In commercial terms the ruling would be catastrophic to the business, and any appeal would really be a case of closing the gate once the animals had left the building.

In the case of the FAIS Ombud, he confirms that there is a right to appeal within 30 days of the respondent receiving the determination.

It then appears as if due process is the victim and regardless of the outcome of the appeal the person has been prejudiced.