What is your view on "name withheld" property investment company.
Financial Advisor
You should look on Moneywebs - Realnet Site they have plenty to say about that company.
But without making remarks on certain companies (whom I wont put my clients in) I would like to bring up the purpose of FAIS as I think this will solve a lot of clients from investing in the wrong investments.
FAIS was set out to protect investors and the public in the financial services industries.
In other words Short Term, Long Term (Life) and Investments
If an advisor adheres to FAIS the likely hood of a client receiving bad advice is considerably reduced and if a client does receive bad advice then he or she will be protected under the FAIS Act.
The FAIS Ombudsman for Financial Service Providers is Mr. Charles Pillai his number is 0860324766.
As a financial advisor I adhere to the act by implementing the following:
1. Provide clients with a FAIS Disclosure Letter, this tells them about me, my qualifications how long I have been in the industry and what I'm licensed to advise on. It also tells my clients how to complain if they receive bad advice. I carry personal indemnity assurance of R10 million in case.
2. Conduct an Financial Needs Analysis this will tell my client what his or her needs are according to risk and investments.
3. Conduct a Risk Profile Analysis with regards to investments, this will establish how to invest my clients funds across all four asset classes Cash, Property, Bonds and Equities.
This is what a Conservative Risk Profile investor should be invested in give or take:
Equities 20%
Cash 40%
Bonds 30%
Property: 20%
It would be bad advice to invest 100% into a single asset class.
All investments and unit trusts should disclose the risk rating on the investment
For example The Stanlib Property Income Fund has an aggressive risk profile.
4. Once I have established my clients needs I will make my recommendations and I will also give them a Record of Advice which I keep on file.
If the FAIS act is carried out very few clients will receive bad advice.
