• The South African Office of the FAIS Ombud, an independent dispute resolution office, announced that complaints involving crypto-related grievances that occurred after October 19, 2022, can be submitted on their website.
• The Office of the FAIS Ombud stated that complaints that occurred before crypto assets were designated as financial products will not be considered.
• The dispute resolution agency has established a General Code of Conduct for authorized financial service providers, which requires material disclosures and recommending a product that is suitable to the individual’s needs and circumstances.

The South African Office of the FAIS Ombud, an independent dispute resolution office which investigates and resolves complaints in terms of the Financial Advisory and Intermediary Services (FAIS) Act, recently announced that it can now accept complaints involving crypto-related grievances that occurred after October 19, 2022. This follows the recent designation of crypto assets as financial products by the Financial Sector Conduct Authority.

The Office of the FAIS Ombud stated that complaints that occurred before crypto assets were designated as financial products will not be considered, and any such complaints lodged with the agency prior to the crypto asset designation will not be considered. The agency also clarified that it lacks jurisdiction to investigate complaints that occurred before crypto assets were designated as financial products.

The dispute resolution agency has also established a General Code of Conduct for authorized financial service providers, which requires material disclosures and recommending a product that is suitable to the individual’s needs and circumstances. The code also requires financial service providers to conduct a needs analysis and advise clients on the best product suited to their needs and circumstances.

In addition to these requirements, the Office of the FAIS Ombud also encourages individuals with crypto-related grievances to contact the Financial Sector Conduct Authority, which is responsible for the enforcement of the code of conduct and the investigation of any grievances not addressed by the Office of the FAIS Ombud.

The Office of the FAIS Ombud is the latest agency in South Africa to recognize the growing importance of crypto assets in the country’s financial services sector. This recognition is likely to further bolster the legitimacy of crypto assets and their associated services in the country and may lead to a further increase in their use and acceptance.