What this page covers
The FAIS Ombud resolves complaints against licensed financial services providers. It is free, it is binding on the provider, and it is the main reason an FSCA licence is worth insisting on.
| Step | Detail |
|---|---|
| 1. Complain to the provider first | The office expects you to have tried |
| 2. Allow six weeks | The provider has that long to resolve it |
| 3. Submit to the Ombud | In writing, with the documents |
| 4. Investigation | The provider must respond |
| 5. Determination | Binding on the provider, with a right of appeal |
| Item | Detail |
|---|---|
| Who may complain | A client of a licensed FSP |
| Cost | Free |
| Maximum award | R800,000 per complaint |
| Time bar | Three years from when you became aware |
| Outside its reach | Unlicensed and foreign providers |
| Also outside | Losses that are simply the result of market movement |
| Situation | In scope |
|---|---|
| Advice given without a suitability assessment | Yes |
| Disclosure that was missing or misleading | Yes |
| An instruction executed incorrectly | Yes |
| A trade you instructed that lost money | No |
| A complaint against an unlicensed broker | No |
| A claim above R800,000 | No, goes to court |
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The Ombud is not a court and not a regulator. It resolves individual complaints against licensed providers, using a process designed to be usable without a lawyer.
The office looks at whether the provider met its obligations under FAIS: did it give suitable advice, disclose what it should have, execute as instructed, and treat the client fairly. A determination is binding on the provider and enforceable as a court order.
★ A worked example
A trader was advised into a leveraged product without any discussion of risk tolerance, lost R150,000, and complained.
If the file shows no record of a suitability assessment and no risk disclosure, the complaint has substance: the failure is in the advice process, which FAIS governs.
If the file shows a completed risk profile, a signed disclosure, and the trader instructing the trades personally, the same loss is not a complaint the Ombud can uphold. The office decides whether the service fell short, not whether the market moved against you.
✕ Common mistakes
- Going to the Ombud first. The provider gets six weeks to resolve it. Skipping that step delays rather than accelerates.
- Complaining about a loss rather than a failure. A losing trade taken on your own instruction is not a service failure. The complaint has to identify what the provider did wrong.
- Waiting more than three years. The complaint is time barred three years after you became aware of the facts.
- Expecting the Ombud to reach an offshore broker. Its jurisdiction covers licensed South African providers only.
Notes on reading these figures
- The office decides whether advice or service fell short, not whether a trade lost money. A losing position taken on your own instruction is not a complaint it can uphold.
- The R800,000 cap is per complaint. Larger claims go to court, where the cost and the timeline are very different.
- An offshore broker is outside the Ombud entirely. That is the concrete thing you give up, and it is worth weighing against whatever the offshore account offers.
To put these figures to work, the FSCA FSP Licence Categories runs the arithmetic on your own numbers, and How to Verify an FSP Licence covers the same ground in ordinary language. South African Financial Laws Reference and Comparing FSCA regulated brokers go into the detail this table only summarises.
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Frequently asked questions
What does it cost?
Nothing. The service is free to complainants.
How much can the Ombud award?
Up to R800,000 per complaint. Larger claims go to court.
How long does it take?
Months rather than weeks, depending on complexity and how quickly the provider responds.
Is the determination binding?
On the provider, yes, and it is enforceable as a court order. Both parties have a right of appeal.
Can I complain about an offshore broker?
No. The Ombud's jurisdiction covers providers licensed under FAIS.
What should I include?
The client agreement, the statements, the correspondence with the provider, and a clear statement of what you say went wrong.