The FSCA recently published draft amendments to the Rules on the Proceedings of the Office of the Ombud for Financial Services Providers. The current maximum compensation limit for the FAIS Ombud is R 800 000, it is now proposed that this limit be changed to R3 500 000.
The reasoning behind the proposal is that the R800 000 limit was set in 2004 and is no longer appropriate as it has not kept up with inflation or the financial realities in the market. Also, the current limit of the FAIS ombud is out of kilter when compared to other ombuds in the financial sector, thereby creating inconsistencies.
Interested parties are invited to submit comments on the draft amendment Notice on the Comments Template published on or before 19 August 2022 to FSCA.RFDstandards@fsca.co.za.