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FAIS Ombud Dealing with complaints submitted to the Ombud for FSPs
A client issues summons against an FSP in the High Court, claiming damages for unsuitable advice. A week later she lodges the same complaint with the FAIS Ombud, hoping for a quicker result. Which statement is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) The Ombud must deal with it, because complaining to the Ombud is free of charge.
- b) The Ombud must deal with it first, and the court must wait for the determination.
- c) The Ombud will not deal with it while court proceedings on the matter are pending.Correct
- d) The Ombud may deal with it, provided the FSP agrees to the Ombud's involvement.
Why this is the answer
The Ombud does not deal with a complaint about a matter on which court proceedings have been started. The client has chosen the court route for this dispute; the Ombud is an alternative to litigation, not a parallel process. The FSP's consent is not what gives the Ombud jurisdiction.
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