FAQs

What is FAIS?
What does FAIS aim to achieve?
What impact does FAIS have on me as a client?
What will happen if someone contravenes the provisions of FAIS?
Whom can I ask for advice?
Can Sanlam give my information to anyone else?

What is FAIS?

FAIS - an acronym for Financial Advisory and Intermediary Services Act - is legislation that impacts on the financial services industry and aims to regulate the giving of advice and rendering of intermediary services to clients, as well as certain other issues.  In a nutshell, FAIS ensures that Sanlam protects you, as its clients, by:

• Providing you with trusted and appropriate advice
• Providing you with quality solutions
• Acting with integrity, transparency and a culture of discipline.

What does FAIS aim to achieve?

The objectives of FAIS are to:

• Protect the clients who use financial services and products
• Protect the financial services industry, and
• Protect intermediaries.

What impact does FAIS have on me as a client?

FAIS requires that Sanlam provides clients with trusted and appropriate solutions and advice, and acts with integrity, transparency and a culture of discipline when dealing with clients.

In terms of FAIS our representatives are obliged to document advice-related communication concerning financial services rendered to clients.  This impacts on the amount of paperwork required, but ultimately FAIS protects us all.

What will happen if someone contravenes the provisions of FAIS?

A person who commits an offence in terms of FAIS – for instance by deliberately making a misleading, false or deceptive statement, or by concealing a fact – is guilty of an offence. Upon conviction, such person may be sentenced to a fine not exceeding R1 000 000 or to imprisonment for a period not exceeding 10 years, or to both such fine and such imprisonment.

Whom can I ask for advice?

The following people or bodies may provide you with financial advice:

• A licensed FSP – e.g. Sanlam or an independent broker
• Duly authorised representatives of a FSP – e.g. Sanlam's financial advisers
• Other employees of a FSP who, as part of their conditions of employment, render financial services to clients – e.g. Sanlam's legal consultants, advisers.

Can Sanlam provide my information to anyone else?

No, unless you give permission or unless it is a legal requirement. Although FAIS requires comprehensive documentation and record keeping, client information and data is strictly confidential unless client consents to disclosure or any other law requires disclosure.