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FAIS Ombud Dealing with complaints submitted to the Ombud for FSPs
A client received advice in June 2019 and realised the same month that it had caused him a loss. He did nothing until August 2023, when he complained to the FSP and then to the FAIS Ombud. What must the Ombud do?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Decline to investigate, because more than three years passed after he became aware of the act complained of.Correct
- b) Investigate, because the three-year period starts only when a complaint is first submitted to the FSP.
- c) Investigate, because a complaint about advice may be lodged at any time while the product is in force.
- d) Decline to investigate, because a complaint must reach the Ombud within six weeks of the advice.
Why this is the answer
The Ombud must decline to investigate a complaint relating to an act or omission that occurred more than three years before the complaint was received; where the complainant was unaware of it, the period runs from when he became aware or ought reasonably to have. He knew in June 2019, so the period expired in June 2022. Six weeks is the FSP's period to resolve a complaint.
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