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Information to be sought from client

Here's a summary of information which should be sought from somebody seeking financial advice in South Africa.

What is your financial situation?
What is your financial product experience?
What are your objectives in connection with the financial service required?

Information to be presented to client

From the info provided, identify the financial products that will be appropriate to the client's financial needs & risk profile. If insufficient info has been obtained, the provider must fully inform the client thereof & ensure the client understands that a full analysis could not be undertaken, there may be limitations on the appropriateness of the advice provided, and that the client should take care to consider on his own whether the advice is approrpriate.

Different financial products should only be compared if the differing characteristics are made clear.

Info on contract/transaction

All material info (including monetary amounts or where that's not possible, the basis of calculation). Provide the contract as well as explaining the nature & material terms of the contract/transaction, providing all info necessary for the client to make an informed decision. This should include :

Where appropriate this may include illustrations and projections.

Any information on past performance should include a warning that it is not necessarily indicative of future performances.

Details of the any commission, remuneration or anything else of value which will become payable/available to the provider as a result of rendering the financial service.

Clients should never be asked to sign a document if all details have not been filled in.

Info on product suppliers

At the earliest reasonable opportunity, furnish clients with details of the product supplier, as well as letting the client know the details of your contractual relationship with the product supplier and whether you have contractual relationships with other product suppliers.


Actual & potential conflicts, including personal interests in the service & non-cash incentives. The interests of the client should be prioritised over the interests of the provider. Do not deal in any financial product for your own benefit, if the dealing is based upon advance knowledge of pending client transactions or any price sensitive non-public info.

How the info should be presented

Present in plain understanable language, avoiding any uncertainties.

If the information is provided orally, it should be confirmed in writing to enable a record to be kept.

Client elects to do other than advised

If a client elects to conclude a transaction other than that recommended, the client should be informed of any risks.

Maintain records

Maintain records safe from destruction, for an appropriate period of advice and transactions. For example, in South Africa records must be kept for 5 years after termination of the product, or after the rendering of the financial service. Records must be available for inspection within 7 days of the SA registrar's request.

In particular, keep records of (and also supply them to the client):

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Due to regulations, our emails and this entire website should be considered as having been set up for entertainment purposes alone. Expect errors and omissions. Investment in shares and other financial instruments should be conducted by professional investment experts only. Any use of the information on my websites, emails and newsletters is at your own risk, and by using it you agree that the owners of our websites, authors and associated parties wont be held liable for any losses suffered as a result of using the information. None of the information should be construed as being advice. Our newsletters, articles, discussions and website are not an offering for any investment. It represents only our and others' opinions. Any views expressed are provided for information purposes only and should not be construed in any way as an offer, an endorsement, or inducement to invest. Illustrations, forecasts or hypothetical data are not guaranteed and are provided for illustrative purposes only. There are risks involved in buying or selling a financial product. Past performance is not indicative of future performance. Any investment values given are not guaranteed. Investment returns can be volatile. When investing there is always the risk of losing all or a substantial amount of your investment, as well as the risk of illiquidity. There may be advertisements on some pages on this website, and we may earn income from these advertisements. We may earn commission on products invested in or annuities purchased. We cannot attest to the accuracy of the material presented here, and opinions expressed may be changed without prior notice. In any event our liability will be limited to R1, and any court cases must take place in Cape Town. You may contact us at