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FAIS Ombud Dealing with complaints submitted to the Ombud for FSPs
Which statement correctly describes the FAIS Ombud's power to award costs?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Costs may be awarded against the respondent only, because the service is free to complainants in all circumstances.
- b) Costs may not be awarded at all, because the office is funded by levies on the industry.
- c) Costs may be awarded against the respondent, and against a complainant whose conduct was improper or unreasonable.Correct
- d) Costs follow the result, so the losing party pays the costs of the winning party as in a civil court.
Why this is the answer
A determination may include a costs award against the respondent. Costs may also be awarded against a complainant if, in the Ombud's opinion, the complainant's conduct was improper or unreasonable or the complainant caused an unreasonable delay. Costs do not simply follow the result as in litigation.
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