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FAIS Ombud Dealing with complaints submitted to the Ombud for FSPs
A complainant's loss is greater than the monetary limit of the FAIS Ombud's jurisdiction. In which circumstances may the Ombud still deal with the complaint?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) If the Ombud considers it equitable to exceed the limit in the circumstances of the particular complaint.
- b) If the complainant abandons the excess in writing, or the respondent agrees in writing to the limit being exceeded.Correct
- c) Only if the complainant abandons the excess in writing; the agreement of the respondent makes no difference.
- d) In no circumstances, because a claim above the limit falls within the exclusive jurisdiction of the courts.
Why this is the answer
The Ombud may not award more than the jurisdictional limit unless the respondent has agreed in writing to the limit being exceeded; alternatively the complainant may abandon the excess in writing to bring the claim within the limit. The Ombud has no discretion to ignore the limit on grounds of equity.
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