Case Study:

Thandi works as a portfolio manager at VBS bank, which is a registered financial services provider. Over the weekend, she attended a friend's braai party. Nandi, a friend of hers, mentioned that she was considering buying shares in Phonix, a company that had just recently listed. Thandi then recommended that Nandi consider investing in the company. During the week, Nandi then bought the Phonix shares, but over the next two weeks the shares declined and she ended up most of her original investment. Nandi was furious and hurt that her friend would provide her with such bad advice. In turn she then decided to sue Thandi as she blames her for the bad investment decision.

Questions:

Do you think Nandi can Sue Thandi? Motivate your answer.

List at least 1 element that one should consider when giving advice to clients.

Instructions:

Contribute to the discussion forum by posting a paragraph between 150 - 250 words.

Keep in mind the elements from the legislationmaterial and FAIS Act that pertain to these cases