The Office of the Ombud for Financial Services Providers (FAIS Ombud) is South Africa's free, independent dispute resolution body for complaints against FSCA-regulated financial services providers. In the 2024/25 financial year, the FAIS Ombud received 15,404 complaints — up from 10,574 the prior year. Knowing when and how to use this process is a practical right that most SA forex traders are unaware of.
What the FAIS Ombud Does
The FAIS Ombud investigates and resolves disputes between clients and Financial Services Providers (FSPs) licensed by the FSCA. For forex traders, this means disputes involving:
- Alleged misrepresentation by a broker or introducing broker
- Failure to execute a client instruction correctly
- Unauthorised transactions on an account
- Disputes about account terms or conditions
- Failure to provide documents required by FAIS (advice record, product disclosure, etc.)
The Ombud can investigate complaints and award compensation. Its decisions are binding on the FSP — the same legal weight as a court order. The process is free to clients.
Jurisdiction cap (updated June 2024)
The FAIS Ombud can adjudicate claims up to R3,500,000 — raised from R800,000 in June 2024. This covers the vast majority of retail client disputes.
When the FAIS Ombud Applies — and When It Doesn't
The FAIS Ombud can help if:
- Your broker holds a valid FSCA licence (FSP registration)
- Your account agreement is with the FSCA-licensed entity (not an offshore entity)
- The dispute involves the conduct of the FSP, not general market losses
The FAIS Ombud cannot help if:
- Your account is with an offshore entity (Seychelles, Bahamas, Mauritius etc.) even if the broker holds an FSCA licence for a separate SA subsidiary
- Your complaint is about market losses from a trade that went against you (this is market risk, not FSP conduct)
- The dispute involves a crypto exchange, unregistered investment scheme, or other entity outside FSCA jurisdiction
- The FSP has commenced liquidation proceedings (refer to the FSCA directly in this case)
Critical check before complaining: Go to the FSCA's FSP Register at fsca.co.za and verify that your broker's entity — the specific legal entity named in your account agreement — holds a current FSCA authorisation. Holding a licence in name while routing client accounts through an unregulated offshore entity is a common structure that removes FAIS Ombud jurisdiction.
The Four-Step Complaint Process
Step 1: Exhaust the FSP's internal process first
Before going to the Ombud, you must give the FSP an opportunity to resolve the complaint themselves. The FAIS Act requires FSPs to have a formal complaints handling procedure.
- Submit your complaint in writing to the broker's compliance or complaints department
- Keep a copy of the submission and all responses
- The FSP has 45 business days to respond to your formal complaint
If 45 business days pass without a satisfactory resolution, or if the FSP rejects your complaint, you can escalate to the Ombud.
Step 2: Submit to the FAIS Ombud
Contact details
Website: faisombud.co.za
Email: info@faisombud.co.za
Phone: 012 762 5000
Online complaint form: Available on the FAIS Ombud website (recommended — creates a reference number immediately)
What to include in your submission:
- Your full name and contact details
- The FSP's name and FSCA licence number
- A clear, factual chronological account of the dispute (dates, amounts, communications)
- Copies of all relevant documentation: account statements, emails, chat logs with the broker, your original complaint to the FSP and their response
- The specific outcome you are seeking (e.g., R15,000 refund for an unauthorised transaction)
Keep the narrative factual and specific. Avoid emotional language — the Ombud assesses conduct against legal obligations, not general dissatisfaction.
Step 3: Investigation
The Ombud's team will review your submission and contact the FSP for their account of events. Both parties have the opportunity to submit evidence. In complex cases, the investigation process may involve the Ombud requesting additional documents or conducting interviews.
Timeline
The FAIS Ombud targets closing formal cases within approximately 63 working days (2023/24 annual report data). Complex matters take longer; straightforward factual disputes may resolve sooner.
Step 4: Determination
The Ombud issues a determination — a formal ruling. If the determination favours you:
- The FSP is required to comply within a specified timeframe
- Non-compliance can be referred to the High Court for enforcement
- The FSP cannot appeal a determination in the ordinary sense — they can apply to the Financial Services Tribunal for reconsideration, but must demonstrate grounds
If the determination does not favour you, you retain the right to pursue the matter in court — the FAIS Ombud process does not waive your legal rights.
Practical Advice Before Complaining
Document everything from the start. When a dispute arises with a broker, immediately begin keeping records: screenshots of positions, account statements, email exchanges, live chat logs. Once a dispute is underway, brokers sometimes restrict account access — collect evidence before this happens.
Know what you're claiming. The Ombud assesses specific FSP conduct against specific legal obligations. "They lost my money" is not a viable complaint — "they executed a different instrument than instructed on [date], resulting in a R8,000 loss" is viable.
Use the right channel. If your broker is offshore-regulated only, the FAIS Ombud cannot help. In that case, your options are: the broker's own escalation process, the relevant offshore regulator (FSC Mauritius, SCB Bahamas etc.), or — if there is potential fraud — the Hawks (DPCI) in SA.
This is general information only, not legal advice. The FAIS Ombud process is governed by the FAIS Act and may change. Contact the FAIS Ombud directly for up-to-date guidance on your specific situation.
