YOUR RIGHTS ACCORDING TO FAIS

FAIS CODE OF CONDUCT

On 1 October 2004, the Financial Advisory and Intermediary Services (FAIS) Act came into force. This Act has been established for YOU, the client of the financial advisor. It is for your protection.

A full copy of the General Code of Conduct of the FAIS Act is available to download at the bottom of this page. What follows is a few pertinent extracts from it, that highlight your rights as a client.

GENERAL PROVISIONS
A provider [financial advisor] must at all times render financial services honestly, fairly, with due skill, care and diligence, and in the interests of clients and the integrity of the financial services industry.

INFORMATION ON PRODUCT SUPPLIERS
A provider [financial advisor]...must at the earliest reasonable opportunity...furnish the client with the following information...:

the contractual relationship with the product supplier (if any), and whether the
provider has contractual relationships with other product suppliers (this info is provided by all advisors listed on this website on the Advisor detail page)
whether during the preceding 12 month period [the advisor] received more than 30% of total
remuneration, including commission, from the product supplier (this info is provided by all advisors listed on this website on the Advisor detail page)

A provider [financial advisor] must, where the relevant licence, terms of employment or mandate enables such provider to provide clients with financial services in respect of a choice of product suppliers, exercise judgment objectively in the interest of the client concerned.

INFORMATION ON PROVIDERS
A provider [financial advisor]...must at the earliest reasonable opportunity...furnish the client with the following information...:

concise details of the legal and contractual status of the provider...(this info is provided by all advisors listed on this website on the Advisor detail page)
whether the provider holds guarantees or professional indemnity or fidelity insurance cover or not. (this info is provided by all advisors listed on this website on the Advisor detail page)

CONTACTING OF CLIENT
A provider [financial advisor] must-

in making contact arrangements, and in all communications and dealings with a client, act honourably, professionally and with due regards to the convenience of the client; and

INFORMATION ABOUT FINANCIAL SERVICE
A provider [financial advisor] must-

provide a reasonable and appropriate general explanation of the nature and material terms of the relevant contract or transaction to a client, and generally make full and frank disclosure of any information that would reasonably be expected to enable the client to make an informed decision;
the nature, extent and frequency of any incentive, remuneration, consideration, commission, fee or brokerages (valuable consideration), which will or may become payable to the provider, directly or indirectly, by any product supplier or any person other than the client, (general info on the advisor's remuneration is provided by all advisors listed on this website on the Advisor detail page)
concise details of any special terms or conditions, exclusions of liability, waiting periods, loadings, penalties, excesses, restrictions or circumstances in which benefits will not be provided;
any restrictions on or penalties for early termination of or withdrawal from the product, or other effects, if any, of such termination or withdrawal.

FURNISHING OF ADVICE
A provider [financial advisor] must-

take reasonable steps to seek from the client appropriate and available information regarding the client's financial situation, financial product experience and objectives to enable the provider to provide the client with appropriate advice;
conduct an analysis, for purposes of the advice, based on the information obtained;
identify the financial product or products that will be appropriate to the clients risk profile and financial needs

The provider [financial advisor] must take reasonable steps to ensure that the client understands the advice and that the client is in a position to make an informed decision.

RECORD OF ADVICE
A provider [financial advisor] must...maintain a record of advice furnished to a client...,which record must reflect...in particular:

a brief summary of the information and material on which the advice was based;
the financial products which were considered; and
the financial product or products recommended with an explanation of why the product or products selected, is or are likely to satisfy the clients identified needs and objectives

A provider [financial advisor], other than a direct marketer, must provide a client with a copy of the record contemplated in [the points above] in writing

DOWNLOAD A COPY OF THE FULL GENERAL CODE OF CONDUCT OF THE FAIS ACT