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Endowments with Marc Alves from the FAIS Ombud

Join the Financial Planning Institute of Southern Africa (FPI) and Marc Alves,CFP® from the FAIS Ombud for a webinar scheduled to take place on the 24th of June 2021 at 13h00 (Previously 10 June)

The Office of the FAIS Ombud has noted that a majority of complaints with regards to endowment policies emanate from ‘causal effects’ such as a surrender penalty and the application of restriction periods. Whilst these causal effects only become prevalent at the termination of the policy or when the policy matures, at which point the clients are suddenly faced with surrender penalties and fees that they were not informed of, the main concern for the FAIS Ombud Office is that in most instances the endowment policy was not appropriate, as provided for in terms of Section 8 of the General Code of Conduct, to the client’s needs and circumstances in any event, and ought not to have been recommended in the first place. The misleading component of endowment policies stems from the manner in which these policies are sold. These policies are in fact sold as investment solutions and savings products, utilising the term investment as opposed to policy, without any emphasis on the fact that they are actually life assurance policies. The failure therefore of FSPs to disclose the implications and consequences of terminating or transacting in endowment policies stems from the manner in which these policies are marketed and sold and that they are, in most instances, not appropriate to the client’s needs and circumstances.

These inappropriate recommendations and the resulting inability to make an informed decision by clients is the focus of this webinar together with how this translates to the amendments made to Section 8 of the General Code of Conduct.

Cost FPI Member: Complimentary (Registration required for live session, link will be sent few days before)
Cost Non-Member: R250

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