In a recent Personal Finance article Bruce Cameron stresses the fact that consumers must understand where they are investing their money and why. In South Africa there is legislation in place to protect your interests, however this can only protect you as a consumer to a certain extent and you need to take responsibility for making the correct financial decisions. The Financial Services Board (FSB) is taking steps to ensure the Financial Advisory and Intermediary Services (FAIS) Act is adhered to. The Act requires that you be given appropriate advice and are sold appropriate financial products. Cameron states that there are many good and honest financial advisers who will act in your best interests, but it’s up to you to find them. He provides the following tips:
- Always check that you are dealing with a registered financial service provider (FSP) by going to the FSB website and clicking on the FAIS button, or call the FSB on 0800 110 443.
- FSB licences come with different qualifications so you must make sure that the person is qualified and licensed to sell what you are buying.
He warns us all to be aware at all times as unscrupulous people will do their best to register as an FSP and some will manage to slip through the cracks.
