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FAIS Ombud Dealing with complaints submitted to the Ombud for FSPs
Mr Sithole's broker negligently allowed his life policy to lapse. Mr Sithole has since died, and his widow, the nominated beneficiary, wants to complain to the FAIS Ombud. The broker objects that she was never his client. 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) She may not complain, because a complaint to the Ombud lapses on the death of the client.
- b) She may complain, because a complainant includes a client's successor in title or the beneficiary of the product.Correct
- c) She may not complain, because only the person to whom the financial service was rendered may do so.
- d) She may complain only if the executor of the deceased estate cedes the claim to her in writing.
Why this is the answer
For the purposes of complaints to the Ombud, the client includes the client's successor in title and the beneficiary of the financial product. A nominated beneficiary who is prejudiced by the way the financial service was rendered may therefore complain in her own right. The complaint does not die with the client, and no cession is needed.
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