According to the Financial Advisory and Intermediary Services (FAIS) Act, the South African government agency in charge of looking into and resolving complaints has recently announced that it is now able to “investigate complaints against existing registered financial service providers who offer advice on cryptocurrency.” According to the agency, which is known as the Office of the FAIS Ombud, the recent designation of crypto assets as financial products has made this possible.

The dispute resolution body stated in a news article posted on its website that complaints regarding cryptocurrencies can only be made against registered financial service providers (FSPs), who are required to abide by the nation’s General Code of Conduct for Authorized FSPs. This code requires “material disclosures, conducting a needs analysis, and recommending a product that is appropriate to one’s needs and circumstances.”

However, all complaints submitted to the Office of the FAIS Ombud prior to the Financial Sector Conduct Authority’s designation of crypto assets will not be considered, according to Thuso Ngwagwe of the agency, whose comments were reported by Moneyweb. Ngwagwe reaffirmed the agency’s claim that it lacks jurisdiction in the report.

“All complaints received prior to 19 October 2022 in respect of investments made into cryptocurrency were dismissed by this Office as we did not have jurisdiction to entertain these matters,” Ngwagwe reportedly said.

Ngwagwe claims that during the 2022–2023 fiscal year, the Office of the FAIS Ombud received eight complaints about cryptocurrencies.  However, only “three occurred after 19 October 2022 and will [therefore] be considered.” The rest of the complaints will not be considered and cannot be resubmitted, Ngwagwe added.

The Office of the FAIS Ombudsman advised people with complaints that fall under its purview to go to its portal and file a formal complaint.