Complaints Resolution

Process
For
Mr Price Group Ltd Trading as
Mr Price Group Financial Services

An authorised Financial Services

Provider, FSP 31450
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Page No.

1. Introduction……………………………………………………………………. . 3

2. Complaints Management Mission .......................................... 3

3. Definition of a Complaint...................................................... 4

4. Conditions applicable to complaints…………………………………… 4

5. Our Complaints Procedure.................................................... 5

6. Our right and Duties ............................................................ 6

7. Determination by the Ombud and its legal status .................. 6

8. Appeals to the Board Appeal ................................................ 7

9. Annexure B, Complaints Process Flow Chart………………… ....... 8

10. Annexure B, Description of Complaints Register….. ................ 9

11. Annexure C, Complaints Register…. ...................................... 10

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COMPLAINTS RESOLUTION PROCESS FOR MR PRICE GROUP

FINANCIAL SERVICES

1. Introduction

In terms of the Financial Advisory and Intermediary Services Act (FAIS, Act 37 of 2002)
every Financial Services Provider (FSP) who is authorised to provide financial advice and/or
intermediary services to clients, have the duty to offer clients a formal process to resolve
complaints. The complaint resolution process must offer the client the opportunity to lodge a
complaint and have the complaint resolved within 6 weeks. In the event of the complaint not
being resolved within 6 weeks the client can escalate the complaint to the FAIS Ombud for a
final ruling. Such complaint must be lodged within six months after the determination that the
complaint could not be resolved by the FSP.

2. Complaints Management Mission

As an authorised FSP in terms of the Financial Advisory and Intermediary Services Act (Act
37 of 2002) we are committed to providing our clients with quality service and undertake to
manage the affairs of our clients in such a way that it would not be necessary to have a
complaint about our service, integrity and commitment. However should it happen that a
client does have a complaint, we undertake to:

 Resolve client complaints in such a way that is fair to our clients, our business and our
staff.
 We undertake to inform all our clients of the procedures established for the internal
resolution of their complaints, details of which will be given to them in writing.
 We undertake to ensure easy access to our complaints resolution process at our offices,
or by way of post, e-mail or telephone.
 Empower and properly train the people in our business to deal with complaints, as well as
with the escalation of non-routine complaints.
 If necessary, appoint an independent mediator to resolve the complaint to the benefit of
both the client and our business.
 Deal with complaints in a timely and fair manner, with every complaint receiving proper
consideration in a process that is managed appropriately and effectively by the
responsible staff member.
 Offer appropriate remedy in all cases where a complaint is resolved in favour of a client.
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 Inform clients of their right to refer their complaints to the FAIS Ombud, should a
complaint not be resolved to their satisfaction within six weeks from the date on which the
complaint is received.
 Maintain records of all complaints received for a period of 5 years, which will specify the
outcome of all the complaints lodged.
 Implement follow-up procedures to:
- Implement remedial actions to prevent similar complaints from occurring.
- Improve services and procedures where necessary in the business.

3. Definition of a Complaint

Complaint means a specific complaint relating to a financial service rendered to the client on
or after the 30th September 2004, being the commencement of FAIS, alleging that we:

 Contravened or failed to comply with a provision of FAIS and that, as a result, the client
has suffered or is likely to suffer financial prejudice or damage;
 Wilfully or negligently rendered a financial service to the client which has caused prejudice
or damage to the client or which is likely to result in such prejudice or damage; or
 Treated the client unfairly.
 The complaint must not be about the investment performance of the product unless the
financial performance was guaranteed or the financial performance was so deficient that it
creates the presumption that there has been misrepresentation, negligence or mal-
administration.

4 Conditions applicable to complaints:

For a complaint to be valid, the following conditions have to be met:

 Where appropriate, a complainant refers to the client and also includes the complainant’s
lawful successor in title or the nominated beneficiary of the financial product which is the
subject of the relevant complaint.
 The act or omission complained of must have been done on or after 30 September 2004.
 The complaint must be received by the Ombud within 3 years of the act or omission that
resulted in the complaint – if the complainant was not aware of the act or omission, the 3
years starts running from the date on which the complainant became aware, or from the
date on which the reasonable person in his circumstances would have become aware,
whichever date is the earliest.
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 If the complainant already instituted action in a court of law relating to the matter forming
the subject of the complaint submitted to the Ombud, the Ombud will not consider the
complaint.
 We must have been given the opportunity to resolve the complaint first. Only if we failed
to resolve the compliant to the satisfaction of the complainant within 6 weeks of receipt,
may the complainant take the matter to the Ombud.
 The complainant has 6 months after he received a final response from the person
complained against, to go to the Ombud.
 Complaints must be in writing and must be accompanied by relevant documentation.
 The Ombud may refuse to consider a complaint if he believes that the complaint should
be dealt with in court.

5. Our Complaints Procedure

To ensure a quick and appropriate response to complaints, the following process should be
used at all times by all relevant staff:

5.1 Log the date and contents of the complaint in the Complaints Register.
5.2 If a complaint is not in writing, ask the client to lodge the complaint in writing.
5.3 Send the external complaints resolution system document to the client.
5.4 Appoint a staff member responsible for the resolution of the complaint.
5.5 Acknowledge receipt of the complaint in writing within 5 days of receipt, and give the
client the name(s) and contact details of the staff responsible for the resolution of the
complaint (Steps 4.3 and 4.5 may happen simultaneously).
5.6 Investigate the complaint to ascertain whether the complaint is legitimate and/or can
be resolved immediately.
5.7 If the complaint can be resolved immediately, take the necessary action and inform
the client accordingly.
5.8 If the complaint cannot be resolved immediately, request supporting documentation (if
any) from the client that may be necessary to resolve the matter and indicate the
expected date of resolution.
5.9 If unable to resolve the complaint within 6 weeks of logging the complaint in the
Complaints Register, notify the client accordingly and advise the client of his/her right
to:
- proceed in terms of Rule 6(a) and 6(b) of the Rules on Proceedings of the
Office of the Ombud for Financial Services Providers (see 6(a) and 6(b)
below); or
- Seek legal redress in another forum.
5.10 Update the register with all developments/activities.
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6. The FSP’s Rights and Duties

In terms of the RULES ON PROCEEDINGS OF THE OFFICE OF THE OMBUD FOR
FINANCIAL SERVICES PROVIDERS, 2002, the FSP has the following rights and duties:

(a) Where a complaint cannot be addressed within three weeks by the FSP, the FSP
must as soon as reasonably possible after receipt of the complaint send to the
complainant a written acknowledgment of the complaint with contact references of the
respondent.
(b) If within six weeks of receipt of a complaint the FSP has been unable to resolve the
complaint to the satisfaction of the complainant, the FSP must inform the complainant
that -
(i) the complaint may be referred to the Office of the Ombud if the complainant
wishes to pursue the matter; and
(ii) the complainant should do so within six months of receipt of such notification.
(c) The FSP must be informed of the complaint submitted to the Office of the Ombud to
the extent necessary to respond thereto fully.
(d) The FSP is entitled to submit any fact, information or documentation in relation to the
complaint and must disclose relevant information or documentation to the Ombud.
(e) If deemed necessary by the Ombud, the FSP must discuss the complaint with the
Ombud and furnish such further relevant information as the Ombud may require.
(f) The FSP is required to act professionally and reasonably and to cooperate with a
view to ensuring the efficient resolution of the complaint.

7 Determinations by the Ombud and its legal status

 The Ombud may, when accepting a complaint in terms of section 27(5) of the Act,
require the FSP to pay a case fee to the Office not exceeding R1 000.00.
 If the complaint was not resolved through conciliated settlement, the Ombud will
make a determination which has the legal status of a civil judgement of court.
 The determination can be a monetary award (not exceeding R800 000, unless the
person complained against agrees to it), or any other order that can be made by a
court.
 An award of costs may be made against the person complained against.
 An award of costs may be made against a complainant if the conduct of the
complainant was improper or unreasonable, or if the complainant caused an
unreasonable delay in the finalisation of the investigation.
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8 Appeals to Board of appeal

 It is possible to appeal to the Board of Appeal, only if the Ombud gives leave to
appeal. If the Ombud refuses, the chairperson of the Board of Appeal can be
requested for permission to appeal.
 Application for leave to appeal must be made to the Ombud within 1 month of the
Ombud’s determination.
 If the Ombud refuses leave to appeal, application for leave to appeal may be made to
the Chairperson of the Board of Appeal, within 1 month of the Ombud’s refusal – the
applicant must inform the Ombud of his application.
 A determination by the Board of Appeal has the same status as a judgement of a civil
court.
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9. Annexure A

Complaints Process Flow Chart

Client lodges complaint

If complaint is not in writing,

ask for written complaint and
send the complaints
procedure policy document
to the client

Complaint received, validated and logged

as a new Complaint on Complaint register

Acknowledge receipt of complaint

in writing within 5 days

Complaint assigned &

investigated

Resolve the complaint immediately or take the necessary action and

advise the client of steps taken and expected date of resolution

Update the complaints register

with all developments/activities

Inform client in writing of the resolution

of the complaint and the outcome

Notify the client if complaint is not resolved within 6 weeks and advise
client of further rights, e.g. refer to Ombud or seek legal redress
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10. Annexure B

Description of Complaints Register

The register must contain the following fields:

Received: This field will reflect the date on which the letter was received. The receipt
period starts its calculations here.

Date Captured: The date of the day on which the complaint is captured.

Received From: The name and designation of the person that submitted the complaint
must be entered here. It may be the client or a representative of the client.

Product: The product or service involved.

Client Surname and Initials: Enter the surname of the client making the complaint.

Complaint Description/Type: Short summary of the complaint.

Captured by: The name of the person who captured the complaint.

Responsible Person: Who will deal with the complaint and ensure that it is resolved.

Outcome of Complaint: Summary of what decision was taken.

Date of Final Communication to Client: Date of letter to the client.

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Complaints register

Client Date
Date Received Surname & Complaint Responsible Communicated
Received Captured from Product Initials Description Person Outcome to Client