General Code of Conduct

Also known as: Code of Conduct, GCoC, General Code

The binding code that sets out how FSPs and representatives must behave towards clients — fairness, disclosure and suitable advice.

The General Code of Conduct for Authorised Financial Services Providers and Representatives is subordinate legislation under the FAIS Act. It dictates how financial services must be rendered to ensure clients are treated fairly.

It covers the duty to act honestly and with due skill, care and diligence; full disclosure of product, fees and conflicts of interest; the suitability of advice (a proper needs analysis); record-keeping; and complaints handling.

A breach of the General Code of Conduct is a serious regulatory matter and is a common basis for client complaints to the FAIS Ombud and for enforcement action by the FSCA.

Related terms

FAIS ActThe Financial Advisory and Intermediary Services Act, 2002 — the law that governs financial advice and intermediary services in South Africa.FAIS OmbudThe independent office that resolves client complaints against FSPs informally, fairly and at no cost to the complainant.Conflict of InterestAny situation where an FSP or representative’s interest may influence the objective advice given to a client.Record-KeepingThe legal duty to keep records of advice, transactions and client information for the prescribed period (generally five years).

Ready to pass the RE5?

Master every term like this with the guided RE5 study guide and real-style practice exams — start free today.

Start practising free Open the study guide