Broker AI and FAIS

Broker AI and FAIS

Broker AI is a drafting tool, not an advisor.

Broker AI takes the material you supply — a policy wording, a schedule, your notes on a client's circumstances — and produces a draft Record of Advice, risk analysis or client letter. It arranges and expresses information. It does not decide what advice is appropriate for your client.

We are not a licensed FSP.

Broker AI (Pty) Ltd does not hold a licence under the Financial Advisory and Intermediary Services Act 37 of 2002. We do not render financial services, we do not act as an intermediary, and we do not furnish advice as defined in section 1 of that Act. We have no relationship with your clients and give them nothing directly.

Where responsibility sits.

Responsibility for the advice, for the suitability analysis, for the accuracy of the record and for compliance with the General Code of Conduct remains entirely with your firm and with the authorised representative concerned. Nothing about using Broker AI transfers any part of that to us, and using it is not an answer to a client complaint, an Ombud determination or a regulatory finding.

Why review is not a formality.

Automated language models produce fluent text. Fluent text can still be wrong. Broker AI can misstate an exclusion, miss an endorsement, carry over a limit incorrectly, or describe a client's circumstances in terms that do not match what you were actually told. It knows nothing about your client beyond what you upload, and it does not track changes in law or insurer wording unless we say so explicitly.

Every output must be read against the source documents and against the advice you actually gave, corrected where it is wrong, and approved by someone mandated to give that advice.

What we do to help you review properly.

• Outputs show the reasoning, so you can check the basis rather than only the conclusion
• Where a figure is derived rather than taken directly from your documents, the output shows the components and the arithmetic, so you can audit it

Current limitations.

Broker AI currently generates structured draft outputs and records relevant processing activity. Formal adviser approval, sign-off and statutory retention must presently be completed within the FSP's own governance and recordkeeping systems. Built-in review audit trails and source-document citations are planned enhancements.

We would rather you knew that before your next audit than after it. This page will change when those are built and not before.

Record keeping.

Section 3(2) of the General Code requires records to be kept for five years. Broker AI is not a substitute for your own record-keeping systems. Our data retention and export arrangements are set out in our Terms of Service, clause 17, and in our privacy notice.

Questions.

If your compliance officer would like to discuss how Broker AI fits into your firm's controls, contact admin@brokerai.co.za. We will provide our operator agreement, our security documentation and our sub-processor list on request.