• What is advice?

• Who may give advice?

• What does fit and proper mean?

What is advice?

FAIS entitles you to appropriate advice on financial products based on relevant facts, your financial circumstances and your needs. The quality of the advice given is based on the relevance and extent of information provided by you, the client.

Advice, in terms of FAIS, is any recommendation, guidance or proposal of a financial nature to any client or group of clients in respect of:

• The purchase of, and investment in, a financial product

• The conclusion of any other transaction (including a loan or cession) with the aim of accepting responsibility for it, or the acquisition of any right or benefit in such a product

• The amendment of the terms and conditions of a financial product 

• The replacement or termination of such a product 

• The cancellation of the purchase of/investment in such a product.

Advice excludes:

• Analysing or reporting on a financial product without making any recommendation or proposal or without giving guidance.
  

• Describing the procedure to enter into a transaction in respect of a financial product

• Answering routine administrative questions

• Describing a financial product

• Objective information about a financial product

• Displaying or distributing promotional material

• Information supplied by the board, management or the trustees of a pension fund or medical scheme regarding benefits enjoyed by such members.

Who may give advice?

The following “fit and proper” persons or bodies may give financial advice to you:

• A FSP (e.g. Sanlam or an independent broker) 

• Authorised representatives of a FSP (e.g. Sanlam's financial advisors and legal consultants).

Sanlam supports a strategy of appropriate advice.  And appropriate advice is exactly what FAIS provides for.  Yet Sanlam's adherence to appropriate advice is driven by its philosophy of good business practices and not solely by complying with legislation. It is therefore associated with good business practice, i.e. with Sanlam's philosophy of appropriate advice.

Sanlam takes responsibility for the financial advisory and intermediary services rendered to you by our advisors who are qualified and competent to do just that.

What does fit and proper mean?

The term fit and proper is a collective term for all the personal characteristics, academic qualifications, experience and the operational ability that all FSPs, representatives and key individuals must possess to be able to render financial services.