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Financial Services
Saturday, April 1, 2006
Fais the music

The consequences of non-compliance with the FAIS Act are serious, and Financial Advisers simply cannot to ignore the legal requiremens.

“Non-compliance constitutes a statutory criminal offence,” says Warren Neale, Registrations Manager at the FSB.
“The Act sets maximum penalties tat can be imposed for contravention of the provisions of the law. Section 36 of the Act determines penalties for contravention with the maximum set at R10 000 000 and/or 10 years’ imprisonment.
“In addition, the Ombud for Financial Services Providers can make awards in favour of aggrieved clients to a maximum of R800 000. Such complaints can be channeled through his office, which is an independent body established to handle consumer complaints regarding financial services providers.”
This makes the message very clear: get FAIS compliant and ensure you have the correct training, or make alternative career plans. The risk is too high to continue operating as a non-compliant financial adviser.

Copyright © Insurance Times and Investments® Vol:19.2 1st April, 2006
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