# FAIS Ombud & Client Complaints Guide (Task 7): 6-Week FSP Window, 6-Month Referral & Determinations > **Category:** Pillar 2: Codes of Conduct & Ombud | **Updated:** 2026-11-03 07:48:07 | **Canonical URL:** https://re5examprep.co.za/blog/fais-ombud-complaints-management-jurisdiction-timeframes-re5 **Executive Summary:** Master Task 7 of the FSCA RE5 & RE1 syllabus: internal Complaints Management Framework (Sections 16–19 of the General Code), 6-week FSP resolution window, 6-month FAIS Ombud referral, and 3-year prescription. --- Statutory Quick Answer (AEO Summary) Under **Task 7 (Sections 16–19 of the General Code of Conduct and Part I of the FAIS Act)**, when a client submits a complaint to an FSP, the FSP must acknowledge it promptly in writing and has **6 weeks** to resolve it. If the FSP fails to resolve the complaint within 6 weeks (or rejects it), the client has **6 months** to escalate the complaint to the **Ombud for Financial Services Providers (FAIS Ombud)**. The Ombud's final determination carries the legal weight of a **civil court judgment**, and complaints prescribe after **3 years**. ## 1. Step-by-Step Client Complaint & FAIS Ombud Lifecycle Follow the exact statutory timeline from the moment a client lodges a complaint to a final FAIS Ombud determination: | Stage / Timeframe | Statutory Requirement | Legal Reference | | --- | --- | --- | | Step 1: Lodge with FSP First | A client must first submit the complaint to the FSP before the FAIS Ombud will entertain it (unless the FSP refuses to cooperate). | FAIS Ombud Rules, Rule 4(a) | | Step 2: Prompt Written Acknowledgment | The FSP must promptly acknowledge receipt of the complaint in writing and provide contact details of the staff handling it. | General Code of Conduct, Sec 19 | | Step 3: 6-Week FSP Resolution Window | The FSP has 6 weeks from receipt of the complaint to investigate and resolve it fairly. | FAIS Ombud Rules, Rule 4(c) | | Step 4: 6-Month Escalation Window to Ombud | If unresolved after 6 weeks or dismissed by the FSP, theFSP must inform the client in writing that they have 6 months to refer the matter to the FAIS Ombud (with the Ombud's contact details). | General Code Sec 19 & Ombud Rule 4 | | Step 5: 3-Year Overall Prescription | The FAIS Ombud must decline to investigate any complaint received more than 3 years after the date of the act/omission (or when the client first became aware of the damage). | FAIS Act 37 of 2002, Sec 27(3)(a) | | Step 6: 5-Year Record Retention | The FSP must keep full records of all client complaints and their outcomes for at least 5 years . | General Code of Conduct, Sec 19 | ## 2. When the FAIS Ombud Must Decline Jurisdiction Under **Section 27(3) of the FAIS Act**, the FAIS Ombud is legally prohibited from investigating a complaint if: - The act or omission occurred more than 3 years before the complaint was received by the Ombud (prescription). - Before the complaint was lodged with the Ombud, the complainant had already instituted proceedings in a court of law relating to the same subject matter. - The claim exceeds the statutory monetary jurisdictional cap (unless the complainant formally abandons the amount above the cap in writing, or the respondent FSP agrees in writing to the Ombud's jurisdiction). - The complaint relates solely to the investment performance of a financial product (unless the performance was explicitly guaranteed or caused by negligence/misrepresentation by the FSP). ## 3. Frequently Asked Questions (FAQs) ### How long does an FSP have to resolve a client complaint before the client can go to the FAIS Ombud? An FSP has 6 weeks from receipt of a complaint to resolve it internally. If the complaint is not resolved within 6 weeks, or is dismissed in writing, the client has 6 months to escalate it to the FAIS Ombud. ### What legal weight does a final determination by the FAIS Ombud carry? Under Section 28(5) of the FAIS Act, a final determination by the FAIS Ombud is deemed to be a civil judgment of a court of law had the matter been heard by that court, and a writ of execution may be issued if the FSP fails to pay. ### What happens if an FSP ignores or fails to comply with a FAIS Ombud determination? Under Section 9(1)(e) of the FAIS Act, failing to comply with a determination of the FAIS Ombud is a direct statutory ground for the FSCA to suspend or withdraw the FSP's licence. ### Can a client complain to the FAIS Ombud solely because the JSE stock market dropped and their portfolio lost value? No. Market fluctuations alone do not constitute a valid FAIS complaint unless the Representative or FSP negligently misrepresented the product, guaranteed returns unlawfully, or breached the Section 8 suitability analysis rules. --- ## Practice Exam Questions on This Topic ### Question 1 (General Code of Conduct, Sec 1 & Sec 3A(1)(b)(iii)) Under Section 3A of the General Code of Conduct, what is the maximum aggregate value of an "immaterial financial interest" (such as gifts or hospitality) that a Representative may receive from a single third party in any calendar year? - **A:** Not exceeding R500 per month - **B:** Not exceeding R1,000 in any calendar year from the same third party - **C:** Not exceeding R5,000 per calendar year - **D:** Unlimited, provided the Key Individual signs the gift register within 15 days **Correct Answer:** B — An immaterial financial interest is capped at a determinable monetary value not exceeding R1,000 in aggregate in any calendar year from the same third party. ### Question 2 (General Code of Conduct, Sec 4(1)(d)) Under Section 4(1)(d) of the General Code of Conduct, an FSP must disclose a potential conflict of interest in writing to a client if the FSP holds more than ___% of a product supplier’s shares OR earned more than ___% of its total remuneration from that single supplier in the preceding 12 months: - **A:** More than 25% shares OR more than 50% remuneration - **B:** More than 5% shares OR more than 15% remuneration - **C:** More than 10% shares OR more than 30% remuneration - **D:** More than 30% shares OR more than 80% remuneration **Correct Answer:** C — Remember the golden percentage pair in Section 4(1)(d): >10% direct/indirect shareholding OR >30% of total commission/remuneration from a single product supplier in the preceding 12 months. ### Question 3 (FAIS Ombud Rules, Rule 4(c) & General Code Sec 19) If a client lodges a formal complaint with an FSP, within what timeframe must the FSP resolve the complaint before the client may escalate it, and how long does the client then have to refer the matter to the FAIS Ombud? - **A:** 15 days to resolve; 30 days to refer to the FAIS Ombud - **B:** 30 days to resolve; 12 months to refer to the FAIS Ombud - **C:** 6 weeks to resolve; 6 months to refer to the FAIS Ombud - **D:** 4 months to resolve; 5 years to refer to the FAIS Ombud **Correct Answer:** C — The FSP has 6 weeks to resolve a complaint internally. After 6 weeks (or upon receipt of the FSP’s final rejection), the client has 6 months to refer the complaint to the FAIS Ombud. --- ## Test Yourself on the Moonstone Exam Simulator - **Free 5-Question Diagnostic:** https://re5examprep.co.za/practice - **Unlock RE5 & RE1 Pro Pass (R249 Once-Off):** https://re5examprep.co.za/boost - **All FSCA Study Guides:** https://re5examprep.co.za/blog