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Debarment Overturned

Justice for All?

Was justice fully served in the Oosthuyzen case before the High Court in Bloemfontein last month? From the perspective of the plaintiff, possibly yes, albeit it 7 years later. Delayed, but at least not denied. What about the advisor? Was he lulled into a false sense of security, being a representative of the Unlisted Securities South […]

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Stick to the script

We receive many enquiries from readers about debarments, like this one last week: The reason why I was debarred was that I helped a customer with a loan application over the phone. I told the customer not to disclose too many expenses as the loan would be declined. That was picked up by the quality […]

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Automated advice and Fit and Proper

During the recent Moonstone Regulatory Update Workshops, Billy Seyffert, COO of Moonstone Compliance and Risk Management alluded to rather stringent requirements for those who plan to go this route. The FPI recently conducted a Robo-Advice Survey. Interestingly, close to 50% of the respondents indicated that they believe that regulators should monitor the progress and standards […]

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Cost implications of Twin Peaks

Some of the harshest criticism of the Financial Sector Regulation Act concerns cost, with some claiming inadequate impact assessment, specifically as far as cost is concerned. Caroline Da Silva,acting Deputy Executive Officer for Insurance at the FSB, noted the following in the latest Twin Peaks newsletter: While implementing the Twin Peaks model will have cost […]

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High Court awards widow R2.7 million

A bereaved widow, who was convinced to invest R2 million in the Sharemax Villa scheme, finally saw justice a month ago in the Bloemfontein High Court, when the judge held her financial advisor accountable for the loss. The plaintiff was vulnerable in July 2010 when the defendant advised her. She was a widow with a two and […]

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Twin Peaks approach to licencing

The Financial Sector Conduct Authority (FSCA) envisages a shift from the current sectoral licensing model to a more centralised, activity-based licensing one. This shift, however, will only take place in the second phase of implementation of the Twin Peaks model. Until then, the licensing of entities will continue to take place under the existing financial […]

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Enforcement under Twin Peaks

A fairer dispensation for all? The second issue of the FSB’s Twin Peaks newsletter contains four sections, one of which discusses the issue of enforcement, where we experienced problems in the past, in understanding particularly how some of the administrative penalties were arrived at. In the past, critics complained that regulators were unable to adequately […]

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Sasria and Santam to Empower Municipalities

Sometimes, desperate times call for innovative ideas, rather than desperate measures. Sasria has signed an agreement with Santam to join their “Partnership for Risk and Resilience” (P4RR) programme to facilitate increased collaboration between provincial and district disaster management centres, to enhance the capacity of local government with fire and flood risk management. Sasria, a state-owned […]

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