FSCA WARNS FINANCIAL ADVISORS AGAINST PRE-POPULATED RECORDS OF ADVICE
The General Code of Conduct for Authorised Financial Services Providers and Representatives, 2009 requires that a Record of Advice, containing prescribed information, be kept in respect of advice given by a provider to a client.
The FSCA has become aware of a practice whereby certain financial institutions pre-populated the information required when one financial product is replaced by another and provide these pre-populated records of advice to providers.
The FSCA warns the industry against this practice, as it could result in incorrect comparisons of policy wording, fees, benefits and exclusions, to the detriment of clients. To read FSCA Communication 46 of 2020 on Pre-populated Records of Advice, click here.
Please contact your ICS compliance officer should you have any queries regarding the above.
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