After a recent determination published in a newsletter on the FAnews website ‘Bad tricks won’t solve advice gap’, we received a fair number of comments, and we believe it is important that we share our views too.
Keeping industrygenuinely astute
We are committed to delivering the most up-to-date news brokers and advisers deal with on a regular basis. It must be emphasised that FAnews is for the adviser and broker - we are on your side.
At the forefront of developments in the financial services industry, we want to provide our readers with updates and insights on regulatory and other relevant issues that have an influence and an impact on the way they do business.
Looking back, the determination by the Financial Advisory and Intermediary Services Ombudsman (FAIS Ombud) was a complaint arising out of the dispute involving the advice given by a broker to a client.
Negative connotations
Having read this determination, some readers were of the opinion that FAnews was on the client’s side. One reader was of the opinion that FAnews has accepted the view that the client is always blameless and the broker is the perpetrator of bad tricks.
Another reader mentioned that it seems the few where it goes wrong is reported on almost in advertisement form by the FAIS Ombud and in sensationalised editorial by industry media, like FAnews.
If readers were to visit all pertinent websites and reports released by the various Ombudsman they will find statistics on how many cases were and are referred to the Ombudsman. The number is negligible for most and it must be highlighted that poor record keeping is often a major contributor to the number of determinations the Ombudsman hands down in favour of complainants.
But there may be some cases where the adviser did provide suitable advice, yet the complainant still approaches the Ombudsman because they are not satisfied with the outcome following the advice. If there is no proper record keeping, the adviser has often got no leg to stand on.
Finding common ground
We find that the Ombud newsletters tend to create the most interest and readership amongst our readers because people want to see what mistakes others are making so that they can learn from it. Controversial as some may say, but the truth is we can all learn a lesson or two from these determinations.
These determinations are shared with advisers and brokers to give them tips and guidance on the common errors that others are making, because one small incident can damage the reputation of an adviser and the industry and no adviser wants to face the harsh rulings of the FAIS Ombud.
In the determination ‘Bad tricks won’t solve advice gap’, we were not implying that the broker is to blame or that the broker should have known better. We are simply stating the findings and opinion of the FAIS Ombud.
Editor’s Thoughts
We are for the adviser.It is our job to keep you, the broker and adviser, informed. What better way to do that then with sharing stories pertinent to the industry that may help you avoid certain consequences and harsh rulings? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts myra@fanews.co.za.
Comments
Added by ANO, 26 Jan 2016Your input is appreciated at all times.
I am now 73 and need all the support in this difficult environment that we can get.
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I do not believe that this is helping to manage the public perception at all but then again publishing the many positive contributions the industry making positively does not attract hits does it. Report Abuse
At the time it appeared to me- as it still does-, that the heading was your choice, and a most unfortunate choice at that , because no where in the article is it reported that the term "Bad Tricks" was used by the Ombud. The article itself was unbiased enough but the heading put a certain negative spin on the matter. Report Abuse