Section 8 of the General Code of Conduct requires a financial services provider to ensure that he or she takes reasonable steps to seek from a client all the information regarding the client’s financial situation, risk profile, financial product experience, objectives and needs. This must be done to enable the financial service provider to provide the client with appropriate advice.

Once this information has been obtained, the Code of Conduct requires that the financial service provider conduct an analysis that will enable him or her to identify the financial product or products that will be appropriate to the client’s risk profile and financial needs.

This particular requirement has been made subject to any limitations that may have been imposed on the provider in any contractual arrangement with the client. In this regard the contractual arrangements may be that the provider is instructed to furnish the client with very limited advice. Should a client actually instruct a provider to give advice in a limited form, then an obligation is imposed on the provider to inform the client to take particular care and to ensure that whatever advice is given is in fact appropriate considering the client’s objectives, financial situation and particular need.

Section 9 of the General Code of Conduct requires a provider to maintain a record of the advice furnished to the client after having conducted the necessary analysis.

A copy of the Record of Advice (ROA) must be provided to the client (hard copy or electronic copy).

Retain a signed copy of the Record of Advice in the Client’s File.

Disclaimer: The documents included in the ROA pack are of a generic nature and was compiled with reference to FAIS legislation only. These documents should therefore be used as a guideline only. It is the responsibility of any user of these documents to adapt, customise and verify the contents thereof to the user’s specific needs and circumstances or any other applicable legislation. Moonstone accepts no liability for any damages suffered or losses incurred arising from the use of these documents.