What is good advice? In this episode of "Know Your Ombud," host Maya Fisher-French interviews John Simpson, the FAIS Ombud, about how his office protects consumers when financial advice goes wrong – and what you need to know to protect yourself.
Real-Life Cases
Simpson shares several cases that illustrate how the FAIS Ombud holds financial advisers to a much higher standard. Advisers cannot assume a client understands the product, and any critical clauses or require specific action by the client must be highlighted by the adviser:
· Why the Ombud ordered financial advisors to pay the clients' insurance claim after failing to mention one critical insurance requirement
• An adviser is held responsible for his client having the wrong insurance for his Uber business
• Why bad tax advice meant an adviser was responsible for his client's R85 000 tax bill
When Advisers Get It Right (And Wrong)
The podcast doesn’t just highlight adviser failures. Simpson provides a balanced perspective on what quality financial advice should look like and when consumers must take responsibility for their own decisions – particularly in high-risk areas like forex trading where up to 70% of retail investors lose money.
Your Financial Rights
Simpson explains how the FAIS Ombud process works:
· How to file a complaint if you’ve received poor financial advice
· What special protections exist for vulnerable consumers
· The limitations of the Ombud’s authority and when they can’t help
Protect Yourself
Simpson provides straightforward advice on how to verify your adviser’s credentials, what questions to ask before signing any financial agreement, and the simple Google search that could save you from financial disaster.
Whether you’re planning for retirement, buying insurance, or considering investments, this podcast provides essential knowledge about your rights and how to protect your financial future. Listen now to arm yourself with insider information from the very authority tasked with overseeing the quality of financial advice in South Africa.
If you feel let down by a financial provider, contact one of these Ombud schemes:
- FAIS Ombud for financial advice disputes –
faisombud.co.za
- Office of the Pension Funds Adjudicator (OPFA) for pension fund related disputes –
pfa.org.za
- JSE Ombud: JSE-related issues –
jse.co.za
- National Financial Ombud Scheme (NFO) for banking, credit, and insurance –
nfosa.co.za
This series was created in partnership with
The Ombud Council.