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Failure to respond to complaint lodged against FSP

12 May 2016

The January 2016 determination of the Ombud for Financial Service Providers in Johannes William van Breda v Alesio Mogentale & Another is a good reminder of the powers of the Ombud where an FSP fails to respond to a complaint made against it.

Gross negligence and reasonable precautions

11 May 2016

Subject to the provisions of the policy, the fact that a loss or occurrence insured against is caused by the insured’s negligence is irrelevant. This applies to all negligent acts, even those that are grossly negligent. It also holds true for so-called reckless conduct, if the recklessness involved is nothing other than gross negligence.

The duty of financial service providers

10 May 2016

The December 2015 determination of the Ombud for Financial Service Providers in De Hoop Steenwerwe v Finmar Makelaars reminds us of the duties imposed on FSPs by the FAIS Act and the FAIS General Code.

Insurer not liable for claim settled without consent

06 May 2016

An insured lead mining company settled a pollution suit for $55 million without inviting the insurer to participate in the deal. The insurer was therefore not liable to pay the claim.

quick poll

Question

The strongest deterrent against FSP compliance missteps is or should be:

Answer

A criminal conviction Debarment Fine or penalty Any of the above can work

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