FPI Launches investigation into financial advice related to the RVAF investment scheme

Prem Govender, FPI Chairperson

Financial Planning Institute (FPI), the independent professional body for financial planners in South Africa, is announcing the launch of a pro-active investigation into possible breaches of its Code of Ethics and Professional Responsibility regarding the

According to several media reports the RVAF scheme is alleged to have defrauded thousands of investors, this having been potentially facilitated by questionable investment recommendations made by their financial planners or advisors.

Prem Govender, FPI Chairperson, commented: “FPI, being a professional body with ultimate public benefit responsibilities and which prides itself in ensuring that its member are highly competent, professional and adhere to a strict code of conduct, views any development that has the potential to negatively affect the trust relationship between consumers and its members in a serious light. We are therefore launching this investigation in order to protect the integrity of this vital trust relationship. Should the investigation uncover any instance of alleged member wrong-doing, we will be quick to act in accordance with our disciplinary regulations”

Godfrey Nti, FPI CEO commented: “Professional members of the FPI are bound by a strict Code of Ethics and Professional Responsibility which provides clear standards of conduct regarding investments products, whether regulated by the FSB or not, and our members are strictly obliged to adhere to the code in its entirety. Nti added: “It is FPI’s view that more can, and should, be done from a legislative and regulatory standpoint to better protect investors and also to ensure that a vital trust relationship flourishes between financial advisors and the South African investor public. We are developing practical solutions in this regard and will continue advocating for their implementation by the relevant stakeholders.”

The FPI encourages its professional members and the general public with information that could aid in this investigation to contact Advocate Jacqui Grové, FPI Legal and Compliance Manager on Tel: 011 470 6021 or Email: [email protected] .