The FSCA has imposed penalties of R110 000 on both Viva Cover (Pty) Ltd and Comit Technologies (Pty) Ltd for contravening various provisions of the General Code of Conduct from November 2013 to April 2016.
Comit is a juristic representative of Viva Cover and sold financial products via its call centre on behalf of Viva Life Insurance Ltd.
The FSCA said the fines follow an investigation into, among other things, the issuing of policies and the deduction of premiums without the consent of policyholders.
The Authority said Viva Cover and Commit contravened the following provisions of the code of conduct:
- Section 2, which requires an FSP to render financial services honestly, fairly, with due skill, care and diligence, and in the interests of clients and the integrity of the financial services industry.
- Section 3(1)(a)(ii): FSPs must make representations and provide information to clients in plain language, avoid uncertainty or confusion and not be misleading.
- Section 15(1), which sets out the information that a direct marketer must provide to clients.
- Section 15(3), which stipulates the information that a direct marketer must provide before concluding a transaction and confirm in writing within 30 days where such information is provided orally.
The FSCA said Comit and Viva Cover have remedied their non-compliance with these provisions.