The impact of the financial advisory and intermediary services act of 2002 on consumer awareness and financial service providers in South Africa

Simple item page
dc.contributor.advisorContogiannis, E.
dc.contributor.advisorNaidoo, D.A.
dc.contributor.authorRamchander, Manduth
dc.date.accessioned2012-08-16T09:26:58Z
dc.date.available2012-08-16T09:26:58Z
dc.date.issued2011
dc.descriptionSubmited to the Faculty of Commerce, Administration and Law in fulfilment of the requirements for the degree Doctor of Commerce in the Department of Business Management at the University of Zululand, South Africa, 2011.en_US
dc.description.abstractThe financial services industry is characterized by product suppliers having more information than consumers regarding product features and services. The purpose of this study is to explore this information asymmetry with particular reference to the Insurance Industry. Financial advisors, acting as intermediaries, are charged with the task of resolving this asymmetry through mandatory disclosures demanded by regulation. In South Africa, the Financial Services Board (FSB) monitors, regulates and supervises the financial services industry through the Financial Advisory and Intermediary Services (FAIS) Act of 2002 (RSA, 2002) and The Code of Conduct (RSA, 2003) for Financial Advisors. This study distinguishes financial products from other products and highlights the need for disclosures regarding product features, fees charged and contractual limitations of financial advisors. The dissertation starts with a review of literature on asymmetric information, regulatory interventions and consumer literacy. The subsequent sections deal with the methodology used, followed by results obtained and analysis. Using multistage sampling a national survey was conducted to establish whether consumers: are knowledgeable of the features of basic insurance products; are aware of disclosures they are entitled to; and are aware of the consumer education initiatives of the Financial Services Board. The empirical survey also captures consumers’ perceptions of their financial advisor’s knowledge of financial products on the market. The extent of and the reasons for premature termination of policies are also established. A survey was conducted amongst a sample of compliance officers to capture their perceptions regarding the disclosure of fees that are charged by financial advisors; clients’ knowledge regarding the features of Life Insurance products; premature termination of policies and some general practices amongst financial advisors. The surveys were supplemented by an interview held with managers at the Financial Services Board.en_US
dc.description.sponsorshipThe University of Zululanden_US
dc.identifier.urihttps://hdl.handle.net/10530/1107
dc.language.isoenen_US
dc.publisherUniversity of Zululanden_US
dc.subjectConsumer behavior -- South Africaen_US
dc.titleThe impact of the financial advisory and intermediary services act of 2002 on consumer awareness and financial service providers in South Africaen_US
dc.typeThesisen_US
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
THE IMPACT OF THE FINANCIAL ADVISORY AND INTERMEDIARY.pdf
Size:
1.5 MB
Format:
Adobe Portable Document Format
Description:
Download
Thumbnail Image
Name:
appendices.pdf
Size:
3.21 MB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
Business Management