Question 1

"Stockbrokers sell solutions to financial problems, such as retirement planning, to their clients. These solutions often include professional advice and custom engineering of financial products to meet the customers needs. However, there are numerous financial conflicts of interest between the customers best interest and the stockbrokers, a form of ethical pollution. The highest fee generating strategy for the firm is often not in the customers best interest.

The current requirement that brokers only recommend "suitable" investments is quite weak. The suitability requirement only holds that the product is not defective - it is a solution to the clients problem, but it may not be anywhere near the best solution."

Is it correct to say that the most suitable solution may not always be the best for the client ?

Question 2

With regards to South Africa Financial Markets Act section 21 and 22 , does the segregation of funds provisions in the Financial Markets Act sufficiently protects clients when financial service providers are dealing with their funds ?