Failure to comply with regulatory requirements can be a costly mistake. In a recent case, the Financial Sector Conduct Authority (FSCA) withdrew the FSP licence of Dikwena Funeral Parlour (Pty) Ltd, debarred Mr. Simon Mahlaola and imposed an administrative penalty of R3.9 million (inclusive of costs) on Dikwena.
According to the FSCA, Dikwena was previously authorised as a Category I financial services provider to only render financial advisory and intermediary services in respect of long-term insurance subcategory A (“assistance policies”). After having received a complaint from a member of the public, the FSCA commenced an investigation into the operations of Dikwena. The investigation revealed that Dikwena deliberately failed to ensure that all its clients were underwritten by a registered long-term insurer.
Click here to read the FSCA media release.