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General Code of Conduct

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(here's my notes on the General Code of Conduct - leaves out details & entire sections - e.g. direct marketing)

Section 16 of the FAIS Act requires a Code of Conduct to be drafted to ensure inter alia that those being rendered financial services:

To this end FSPs are required inter alia to:

A provider must supply the client with the following info in writing:

The provider rendering the financial service must provide the following info in writing:

A provider must at the commencement of any contact, visit or call initiated by the provider, explain the purpose thereof & at the earliest opportunity supply the information specified in the previous point.

A provider must:

Before give advice

Seek from the client info about his:

Identify the financial product which is appropriate to the client's risk profile & financial needs.

If the product is to replace an existing product, fully disclose the actual & potential financial implications, costs & consequences, including:

The provider providing advice must before the transaction notify the issuer of the existing long-term insurance contract of such advice.

If all the info for furnishing advice has not been provided, the provider must ensure that the client clearly understands that a full analysis in respecct of the client could not be undertaken & that there may be limitations on the appropriateness of the advice.

If the client elects to conclude a transaction that differs from that recommended, the adviser must advise the client to take particular care to consider whether any product selected is appropriate to the client's needs, objectives & circumstances.

Record of advice

Summary of info on which advice was based.

Financial products considered.

Financial product recommended, with an explanation of why the prouduct is likely to satisfy the client's identified needs & objectives.

Advertisements & direct marketing

If they contain performance data (including awards & rankings), must include reference to their source & date, and a warning that past performances are not necessarily indicative of future performances.

Illustrations, forecasts or hypothetical data must contain support in the form of clearly stated assumptions (including in respect of performance, returns, costs & charges) with a reasonable prospect of being met under current circumstances. Make it clear that they are not guaranteed and are for illustrative purposes only. Where returns or benefits are dependent on the performance of underlying assets or other variable market factors, this dependence should be made clear.

Readers should be warned of the risk of buying/selling a financial product.

If the investment value mentioned is not guaranteed, a warning should be provided that no guarantees are provided.


Proviers must request that clients lodge complaints in writing, and maintain a record of complaints for 5 years. There are specific obligations on what clients must be informed of.

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