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Financial advice and product sales have always gone hand in hand, the one being largely dependent on the other.

“It is our belief that one cannot simultaneously give financial advice and earn income from the sale of the products. It contaminates the process and is seldom in the interest of the client, because earning an income is usually dependent upon the sale of a product.”

This is the view of Dr. Philip van der Walt, MD of recently launched Finlac Risk & Legal Management.

The company was founded jointly by Van der Walt and Nico van Gijsen, financial columnist and author of three books on personal financial planning. It does not sell financial products and has no commission agreement with any product provider, says Van der Walt.

On this basis Finlac also has agreements with brokers wanting an independent legal and financial planning service for their clients.

Because this service is free from the pressure of product providers it is fully within the spirit and requirements of the so-called FAIS Act that places great emphasis on suitable advice, says Van der Walt.