Risks for financial service providers offering professional advice beyond their expertise

It is not uncommon for people, investors and businesses to suffer financial losses as a result of sub-standard professional advice offered by financial service providers, as defined in the Financial Advisory and Intermediary Act (“FAIS Act”). In some instances, a financial advisor is not duly qualified and/or adequately experienced. Sometimes, it has nothing to do with qualification and experience, however, the advisor does not fully understand and appreciate the risks associated with the financial product in respect of which s/he is giving advice. Against this background, it is crucial that individuals, investors, and businesses are aware of their legal recourse in such cases.