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FSB Responds to Hunter Claims

An article in Personal Finance titled Tshidi hits back over pension fund allegations, states:

Financial Services Board (FSB) chief executive Dube Tshidi says the financial services industry regulator will apply to the Pretoria High Court to strike out “scurrilous and scandalous” accusations made against him by a senior FSB executive in her application to the court.

In an application filed in January, Rosemary Hunter, the deputy registrar of pension funds, alleged that Tshidi had abused public funds to frustrate her attempts to investigate what she regards as the “unlawful” closure of thousands of dormant retirement funds between 2007 and 2013.

But Tshidi’s replying affidavit filed this month describes Hunter as an “angry, distrustful and even vengeful woman resorting to unbridled accusations, intemperate language and wholly unsubstantiated conclusions”.

Legalbrief Today also summarised an article contained in Business Day as follows:

Insurers claim reputational damages following disclosures

Financial Services Board (FSB) pensions registrar Rosemary Hunter’s case against her employer has sparked unease in the financial services industry, with insurer Liberty and an industry association expressing concerns about possible reputational damage. A Business Day report says in an answering affidavit filed two weeks ago, FSB CEO Dube Tshidi included letters from Liberty CEO Thabo Dloti and the Association for Savings and Investment SA (Asisa) as proof that the case had the potential to cause reputational damage beyond the FSB. In January, Hunter took the FSB, Sithole, Tshidi, Finance Minister Pravin Gordhan and her predecessor, Jurgen Boyd, to court, claiming there had been irregularities in the way the FSB handled the cancellation of thousands of dormant and orphan funds. This had resulted in material prejudice to fund members. Liberty administered 80% of the 6 757 dormant funds cancelled, according to Tshidi’s affidavit. In his letter addressed to FSB chairperson Abel Sithole, Dloti said Hunter had made ‘serious allegations’ against Liberty Corporate and its employee-benefits business, based on confidential information given to her. Dloti said the insurer believed Hunter’s disclosures were not appropriate or in the public interest

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