Some of the Financial Sector Conduct Authority’s most closely watched investigations remain incomplete years after the underlying events took place. But the delays do not necessarily reflect regulatory inaction.
Responses provided to Moonstone after the release of the FSCA’s 2025/26 Regulatory Actions Report show that several high-profile investigations have been slowed by litigation over the regulator’s investigative powers, search warrants, and access to evidence.
Tongaat Hulett: investigation resumes after years of litigation
The FSCA’s Tongaat Hulett investigation is one of its longest-running market-abuse matters. It concerns alleged contraventions of section 81 of the Financial Markets Act (FMA) arising from false and misleading statements published by the company during the 2017 and 2018 financial years.
Tongaat Hulett itself has already paid a R20-million administrative penalty imposed in 2020. The penalty followed the company’s restatement of its 2017 and 2018 financial results, after prior-period errors extending back over six years were identified.
Michael Deighton, the former managing director of Tongaat Hulett Developments, was one of the former senior executives identified in the FSCA’s investigation.
The investigation was delayed for several years by litigation brought by Deighton. He argued that the FSCA’s investigation was procedurally unfair because he had not been given access to the regulator’s investigative material before being interviewed.
The High Court initially agreed, but a Full Bench overturned that decision in February 2024, finding that there was no legal basis for requiring the FSCA to disclose its investigative material before questioning a person under investigation. The Court also accepted the regulator’s argument that premature disclosure could compromise the integrity of an ongoing investigation.
Read: FSCA’s investigation into Tongaat Hulett accused not unlawful
After the Supreme Court of Appeal (SCA) refused leave to appeal, the Constitutional Court dismissed Deighton’s application in June 2025, bringing the litigation to an end.
The significance of the judgment extends beyond the Tongaat matter. It reinforced the principle that the FSCA may generally complete its investigative processes without being compelled to disclose its evidence prematurely, a question that has also arisen in other major investigations.
The FSCA told Moonstone that, following the conclusion of the court proceedings, the Tongaat investigation has resumed and remains ongoing. It said the remaining investigation relates to the conduct of other parties, and possible further enforcement action will depend on the outcome of that process.
AYO: investigation remains on hold
The FSCA’s investigation into possible manipulative trading in AYO Technology Solutions shares stems from trading activity reviewed for the period May 2018 to February 2019.
The 2024/25 Regulatory Actions Report said the FSCA had obtained search-and-seizure warrants as part of the investigation, but litigation challenging the investigation and the warrants had delayed completion of the matter.
The regulator told Moonstone that the investigation has been delayed by several legal challenges brought by Dr Iqbal Survé, executive chairman of Sekunjalo Investment Holdings (Pty) Ltd, which controls AYO Technology Solutions.
The FSCA said Survé also challenged the October 2019 search-and-seizure operation conducted at the premises of African Equity Empowerment Investments Ltd, Sekunjalo Investment Holdings, and 3 Laws Capital (Pty) Ltd.
The FSCA said the search-and-seizure challenge raises issues similar to those in the Municipal Employees’ Pension Fund (MEPF) matter, where the SCA ruled in the regulator’s favour on access to investigative records during an ongoing investigation.
Read: SCA backs FSCA in dispute with fund over investigation record
The MEPF parties have sought leave to appeal to the Constitutional Court. The FSCA said it has therefore decided to hold the AYO investigation in abeyance pending that outcome, although most of the investigation has been completed.
Curro: assessment becomes formal investigation
The Curro matter centres on allegations of possible insider trading before the company’s delisting from the JSE.
Curro was delisted on 13 January 2026 after shareholders approved a scheme of arrangement under which the Jannie Mouton Stigting acquired the education group, with shareholders receiving a combination of cash and shares in Capitec and PSG Financial Services.
The allegations followed reports of unusual trading in Curro shares in the months before the Jannie Mouton Foundation announced its R7.2-billion offer to acquire the remaining shares in the group and delist it from the JSE.
In December 2025, the FSCA confirmed it had launched a preliminary investigation after receiving allegations of market abuse relating to trading in Curro shares. At the time, the regulator emphasised that the purpose of a preliminary investigation was simply to establish the facts, and it did not imply any breach of financial sector laws.
The FSCA has now confirmed to Moonstone that the preliminary assessment has progressed to a formal insider-trading investigation. It said the investigation is ongoing and declined to comment further.
The three matters illustrate why the path from market events to enforcement outcomes can be lengthy. In Tongaat, procedural litigation has ended and the investigation has resumed. In AYO, related litigation continues to affect the regulator’s ability to complete the matter. In Curro, the process is still at the fact-finding stage.
None of these updates amounts to a finding of wrongdoing against any person under investigation.
