LegalX Complaints Resolution Policy
1. Protection of Consumers
The Financial Advisory and Intermediary Services Act 37 of 2002 protects consumers by regulating the financial advice and intermediary services provided by a Financial Services Provider (FSP), ensuring that consumers are adequately informed about the products they purchase and the product suppliers, in order for them to make informed decisions
2. Regulation of Advice-giving Activities
The FAIS Act requires Legalex e.g. staff that appear on the Financial Services Board register to be equipped with the necessary skills, qualifications and experience (‘fit and proper’ requirements) to provide a financial service suited to the client’s needs. The key individuals of Legalex have to comply with similar fit and proper requirements in order for Legalex to maintain its FAIS licence.
In terms of the FAIS Act, Legalex must:
Disclose to the client that it holds a licence to provide such service;
Provide all the necessary information regarding the product and the supplier;
Where appropriate and where advice was given directly to the client, provide details of remuneration.
4. Consumer Platform for complaints
The FAIS Act also provides consumers with a platform to address their complaints in a fair and procedural manner. In terms of the Act, a complaint must relate to a financial service rendered by Legalex to the complainant, in which it is alleged that Legalex:
has contravened or failed to comply with the FAIS Act and that as a result thereof the complainant has suffered or is likely to suffer financial prejudice or damage;
has wilfully or negligently rendered a financial service to the complainant which has caused prejudice or damage to the complainant or which is likely to result in such prejudice or damage; or
has treated the complainant unfairly.
5. Complaint – defined
“… has contravened or failed to comply with a provision of this Act and that as a result thereof the complainant has suffered or is likely to suffer financial prejudice or damage;”
Some guidelines and examples:
If there are allegations that no quote or no disclosures were shown when the policy was taken out;
Complaints about not knowing the structure of the product before taking it out;
Complaints about not having received the policy document and therefore not knowing the features of the product;
Allegations of mis-selling:
No record of advice having been shown;
Legalex sold the client an incorrect policy, given the client’s circumstances;
Where appropriate, no risk analysis was done before the product was sold.
Negligence or delay on Legalex’s part in issuing the policy or effecting a policy change which led to financial loss;
Complaint about not being advised of the effect that a particular change would have on the policy;
Complaint that the financial adviser is no longer employed by Legalex and the client does not know who to deal with;
Complaint that confidential information regarding a client was disclosed to a third party without the client’s consent;
The client alleging that they signed or were asked to sign a blank document.
“… has wilfully or negligently rendered a financial service to the complainant which has caused prejudice or damage to the complainant or which is likely to result in such prejudice or damage;”
Some guidelines and examples:
Complaint that the incorrect product was sold to the client;
Complaint that a product was sold without the client’s knowledge;
Complaint that Legalex acted without the client’s knowledge/consent e.g.
Cancelled a policy without the client’s knowledge/consent;
Effected any policy change without the client’s knowledge/consent which caused prejudice to the client or ;
Effected any change contrary to the client’s instructions.
Complaint that Legalex took money from a client but did not issue a policy;
Legalex having system problems and as a result the client is prejudiced;
Legalex not acting timeously on the reasonable instruction of the client, as a result of which the client was prejudiced.
“… has treated the complainant unfairly;”
Some guidelines and examples:
Complaints that the client has been pushed from pillar to post without resolution;
Complaints about rude behaviour;
Complaints that a previous complaint was not handled fairly and objectively;
Complaints that different staff provided different information when contacted about the same issue;
Complaints that the provider promised to do one thing and then did another;
Complaints arising from claims adjudication, including repudiation of claims.
6. Legalex will deal with Complaints Resulting From:
Advice provided by its key individuals;
Advice provided by its appointed representatives including staff and/or third-party outbound callcentres; and
To qualify as a FAIS complaint, the answer to one of the following questions must be “yes”:
Has Legalex contravened or failed to comply with any provision of the FAIS Act, and that as a result thereof, the complainant has suffered or is likely to suffer financial prejudice or damage?
Has Legalex wilfully or negligently rendered a financial service to the complainant, which has caused prejudice or damage to the complainant or which is likely to result in such prejudice or damage?
Has Legalex treated the complainant unfairly?
If the answer to one of the above questions is “yes”, please proceed as per the following procedure:
You will need to complete the attached complaint notification form, providing as much information as possible and attach copies of any relevant documentation.
Should you wish, you may submit the complaints notification form in the first instance to the Directors of Legalex (Pty) Ltd in order to afford the Company the opportunity to facilitate quick resolution of the complaint without any prejudice to your right to escalate the complaint further as set out hereunder. The complaint must be sent to:
Legalex (Pty) Ltd (FSP No. 5277)
Telephone number 0861 10 20 92
Fax number 0861 92 10 20
E-mail address email@example.com
Should the complaint remain unsolved, the complaint notification form may be sent to:
The Compliance Officer
ISS Compliance (Pty) Ltd (FSP no. 19015)
Telephone number 0861 266 759
E-mail address firstname.lastname@example.org
You may expect a written response, within 36 hours of receipt of the written complaint, providing you with details of the person who will be considering your complaint and how your complaint will be handled.
You may expect a resolution of the complaint within 30 days.
You have 6 months within which to refer to the complaint to the FAIS Ombudsman.
Legalex will, on an ongoing basis, investigate the nature of complaints received and ensure that preventative measures are put in place, to avoid future occurrence of similar and other complaints.
7. The FAIS Ombudsman
The FAIS Ombudsman’s objective is to consider and dispose of complaints in a procedurally fair, informal, economical and expeditious manner with reference to what is equitable in all circumstances. He will only proceed to investigate an officially received complaint once he has notified all interested parties of the particulars of the complaint in writing, and is satisfied that all parties are provided with the opportunity to submit a response. The contact details of the FAIS Ombudsman are:
Financial Services Board
P.O. Box 74571
Telephone number: (012) 762 5000
Fax number: (012) 470 9097
8. Complaints Relating to Claims Handling
If the complaint relates to the handling of any claim, the complaint may similarly be directed to Legalex (Pty) Ltd in the first instance and if remaining unresolved, the complaint notification form may also be sent to the Compliance Officer (above) and/or to the Underwriter:
Guardrisk Insurance Company Limited
P.O. Box 786015
Telephone number: (011) 669 1000
If the complaint remains unresolved, the complaint may be directed to the Ombudsman for Short- Term Insurance with the following particulars;
P.O. Box 32334
Telephone number (011) 726 8900
Fax number (011) 726 5501
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