Can I trust an advisor?

Consider their advice the same way you consider that of a used car salesman.

- Roy Cokayne, Moneyweb

Ombud for Financial Services (Fais) John Simpson has advised consumers not to trust their financial advisors "absolutely".

"That is not how it should work," he said in a webinar this week that focused on the Ombud Council Rules for the Fais Ombud that were effective from 1 July.

Simpson admitted this is a strange thing to say but indicated that consumers should consider the advice of their financial service providers (FSPs) or financial advisors in much the same way they consider the advice of a used car salesman when buying a car.

"You are going to look at the car, you are going to evaluate it and test drive it. You are not going to trust what the sales person tells you.

"You must take the same approach with investment and insurance products," he said.

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