The Office of the FAIS Ombud has been operating since 2004, giving consumers a route to redress that doesn't require the cost of going to court. As a KI, your relationship with this office is procedural as much as it is substantive — how your FSP responds matters as much as what actually happened.
QC1 — Explain the role and authority of the Ombud for FSPs
QC2 — Discuss the FSP's obligations in respect of an Ombud investigation
QC3 — Check that processes are in place ensuring the FSP cooperates with an Ombud investigation
QC1: The Authority Behind a Determination
The Ombud investigates and determines disputes independently of both the FSP and the client — it isn't an extension of FSCA enforcement, and its focus is putting the individual complainant right, not disciplining the industry broadly. An unappealed determination carries the same legal force as a High Court civil judgment, enforceable through a writ of execution if the FSP doesn't comply voluntarily.
The compensation limit sat at R800,000 from the Ombud's inception in 2004 until the Ombud Council Rules of 2024 raised it substantially. Know the current numbers precisely:
- Maximum award: R3,500,000 — and this figure excludes any costs and interest awarded separately
- Time to approach the Ombud after the FSP's final response: 6 months
- Since the 2024 Rules, the Office no longer accepts complaints against unregistered FSPs — those go straight to the FSCA instead
QC2: Full Cooperation Means Producing the Record
When the Ombud investigates, the FSP must cooperate fully — including producing the actual record of advice. Where an FSP cannot produce it, the Ombud draws an adverse inference: effectively assuming the FSP cannot prove the advice given was suitable.
QC3: A Documented Process, Not a Scramble
This QC tests whether cooperation is genuinely built into the FSP's operations — a documented internal process for responding promptly and completely to Ombud requests, rather than scrambling reactively each time a request lands. This connects directly to record-keeping: an FSP with poor records cannot cooperate well, however willing it is in principle.
Quick Recap
- The FAIS Ombud's maximum award is R3,500,000, excluding costs and interest — not R2,500,000
- Clients have 6 months to approach the Ombud after receiving the FSP's final response
- Since 2024, complaints against unregistered FSPs go directly to the FSCA instead
- Missing a record of advice during an investigation functions as a presumption the advice was unsuitable
The Numbers That Actually Get Tested
RE Mastery Hub's Task Quizzes drill the R3.5 million figure specifically, since it's the single most common Ombud distractor on the paper.
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