Hike in ombud award

Office anticipates increase in requests for intervention from prejudiced investors.

- Moneyweb

The maximum compensation limit the ombud for financial services (Fais ombud) can award to consumers and investors for financial prejudice or damage has been raised from R800 000 to R3.5 million. This is in terms of new rules for the Fais ombud published by the ombud council on Monday advocate John Fais ombud Simpson welcomed the publication of the rules for his office.

Leanne Jackson, chief ombud of the ombud council, said the rules are binding regulatory instruments made under the Financial Sector Regulation Act (and come into operation on the date of publication.

Limit increase

Simpson said the increase in the jurisdictional limit from R800 000 to R3.5 million was the most significant change.

"Previously, complainants with losses exceeding R800 000 often needed to forgo the excess before this office could proceed with its investigation.

"The increase in the office's jurisdiction, which has remained unchanged since its inception in 2004, allows it to offer greater assistance to complainants.

"Complaints involving retirement advice, especially post-retirement transactions involving annuities, can often exceed R800 000," he said.