In South Africa, financial advice is regulated by the Financial Advisory and Intermediary Services Act (FAIS). Under FAIS, financial advisers must be registered with the Financial Sector Conduct Authority (FSCA) and must adhere to certain standards and requirements when providing financial advice to clients.
Financial advisers may offer advice on a range of financial products, including the following categories:
Investment products: These include products such as unit trusts, exchange-traded funds (ETFs), and stocks. Financial advisers may provide advice on which investment products to buy and sell, as well as on asset allocation and risk management strategies.
Insurance products: Financial advisers may provide advice on a range of insurance products, including life insurance, disability insurance, and medical insurance. They may help clients choose the right coverage and policy limits based on their needs and financial situation.
Retirement planning: Financial advisers may provide advice on retirement planning, including helping clients choose the right retirement savings vehicle, such as a pension fund or a retirement annuity, and developing a retirement income plan.
Estate planning: Financial advisers may provide advice on estate planning, including helping clients create a will, setting up trusts, and selecting beneficiaries for assets such as life insurance policies.
Credit products: Financial advisers may provide advice on credit products, such as home loans, personal loans, and credit cards. They may help clients choose the right product, negotiate terms, and manage debt.
It’s important to note that financial advisers are required to provide unbiased advice that is in the best interests of the client. They must also disclose any potential conflicts of interest and must adhere to the principle of “fairness, integrity, and professionalism” when providing financial advice.