FAIS Ombud Rules Against So Called Friend

FAIS Ombud makes another ruling Naidoo's friend's claim for R31,666.92 for services rendered has been dismissed

A licensed investment broker from Durban has been lambasted by the FAIS ombudsman after he tried to cheat his friend out of thousands of Rands for "services".

The case began when Dhevdass Naidoo had his home burgled and his long time family friend, Perimal, offered him assistance to help lodge the complaint as Naidoo's regular broker was on holiday.

Perimal was faxed claims forms, helped Naidoo fill them out and then offered to hand deliver them to the insurance company, Mutual and Federal, as his office was 'next door'.

At one stage, when Naidoo felt that Perimal was getting too involved in the case, demanding that he get paid 10% of the payouts to give to his "contact" at Mutual and Federal, he took control of the case himself. He informed Perimal that Mutual and Federal had already agreed to pay him directly - a move that allegedly angered Perimal so much that he started making harassing calls to Naidoo and his wife.

Naidoo was forced to turn to the FAIS ombud for assistance after he was slapped with a R31,666.92 'services fee' by his 'friend'.

Naidoo told the ombudsman in his complaint that he had previously been assisted by Perimal as a family friend in the past, and saw no reason to pay him for services - especially such an exorbitant amount - for work that was mainly done himself.

Perimal broke down the costs to include 63 hours of consultation on the 'case', completing claims forms, personal deliveries, telephone calls and traveling expenses.

The ombudsman rapped Perimal for inflating the costs and said that the break down only worked against him in the long run. The claim was thus dismissed and the FAIS ombud said that he would report Permimal's conduct to the Registrar of Financial Service Providers which issues licenses in South Africa.