According to the South African FAIS Ombudsman Office, an independent dispute resolution office, people with cryptocurrency-related complaints that occurred after October 19, 2022 can now formally file such complaints on the agency’s website. However, the FAIS Ombudsman Office insisted that all complaints that occurred before crypto assets were designated financial products will not be considered and should not be resubmitted.
Code of Conduct for Crypto Asset Service Providers
The South African government agency tasked with investigating and settling complaints under the Financial Advisory and Intermediary Services Act (FAIS) recently said that it can now “investigate complaints against existing registered financial service providers who offer advice on cryptocurrency.” According to the agency, known as the FAIS Ombudsman, the recent designation of crypto assets as financial products has made this possible.
In a news article published On its website, the dispute resolution agency said that cryptocurrency-related complaints can only be brought against registered financial service providers (FSPs) who must comply with the country’s General Code of Conduct for authorized FSPs. This code requires “significant disclosures, conducting a needs analysis, and recommending a product that is appropriate for one’s needs and circumstances.”
Only three complaints filed
However, according to the agency’s Thuso Ngwagwe’s comments published by Moneyweb, not all complaints filed with the FAIS Ombudsman’s Office prior to the Financial Sector Conduct Authority’s designation of crypto assets will be considered. In the report, Ngwagwe reiterated the agency’s claim that it lacks jurisdiction.
“All complaints received before October 19, 2022 regarding investments made in cryptocurrency were dismissed by this Office as we did not have jurisdiction to address these matters,” Ngwagwe said.
According to Ngwagwe, the FAIS Office of the Ombudsman received a total of eight cryptocurrency-related complaints during the 2022/23 fiscal year. However, only “three occurred after October 19, 2022 and (therefore) will be considered.” The rest of the complaints will not be considered and cannot be resubmitted, Ngwagwe added.
For people with complaints that fall within their competence, the FAIS Ombudsman’s Office advised visiting its website and making a formal complaint.
Sign up your email here to receive a weekly update on African news in your inbox:
What are your thoughts on this story? Let us know what you think in the comments section below.
image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
