The Financial Advisory and Intermediary Services Act (FAIS)

Private Property South Africa
Property Power

The FAIS Act was established to regulate the conduct of financial institutions who offer credit or other financial products to clients (members of the public), in terms of supplying accurate and informative financial advice, and to repeal or amend certain laws and provide for matters incidental thereto.

The FAIS Act basically stipulates that the client needs all the necessary information to make an informed decision. It is up to the service provider (bank/financial institution) and their representatives (car dealerships and the like) to provide true and accurate information and to answer all questions in order to satisfy any queries the client has relating to a financial product or service.

The FAIS Act obligates financial institutions to do the following:

  • Disclose relevant material information and actual or potential own interests in dealing with clients;

  • Keep adequate and appropriate records;

  • Avoid fraudulent and misleading advertising, canvassing and marketing;

  • Keep clients’ funds and confidential documents safe and properly separated;

  • Offer suitable guarantees or professional protection or fidelity insurance cover; and

  • Tend to any other matter which is necessary or useful to regulate in order to achieve the objectives of this act.

This article originally appeared in Property Power 11th Edition Magazine. To order your copy at the discounted price of R120 click here

Found this article useful? This fantastic content first appeared in the Property Power guide. Order your copy now and save R30 off the list price! Find out more

Share:

Found this content useful?

Get the best of Private Property's latest news and advice delivered straight to your inbox each week

Related Articles

Pros and Cons of a joint home loan
If you’re battling to get onto the housing ladder, applying for a home loan together with someone else can improve your chances. You do however need to be aware of the pros and cons.
Cancelling your home loan
There are various reasons why you may need to cancel your home loan. Here are a few of those, and how to go about the cancellation process.
What is Switching?
The South African property market has become extremely competitive as the financial institutions fight for market share. So, you, as the consumer can benefit from this.
;