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Tag Archives | Debarment

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FSPs can’t simply debar representatives for any act of internal misconduct

The Financial Services Tribunal (FST) has drawn on the principles governing the fit and proper requirements for legal practitioners in setting aside the debarment of a bank’s representative on the grounds of dishonesty. The tribunal also found fault with the procedure followed by First National Bank (FNB) in that it did not address the representative’s […]

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true-or-false

Debarment reconsiderations following a pattern: Which client affidavit is true?

The Financial Services Tribunal (FST) has set aside and remitted the debarment of a Sanlam representative in a case that followed a pattern similar to many debarment reconsideration applications: a client produces an affidavit stating that he or she did not apply for a product but recants the allegations in a second affidavit. The tribunal […]

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confidential

Debarment of rep who was employed by two FSPs set aside

The Financial Services Tribunal (FST) has set aside the debarment of a representative who shared confidential proprietary information with his wife and who signed up with a competing FSP while still employed by Nedbank. According to the FST, the representative, “PH”, signed an employment contract on 29 July 2021 with another FSP while employed by […]

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Ecsponent

Tribunal upholds debarment for providing unauthorised advice on Ecsponent preference shares

The Financial Services Tribunal (FST) has upheld Discovery Life’s decision to debar a financial adviser who advised clients to invest in Ecsponent preference shares although he was not authorised or licensed to advise on this class of product. Martin Lourens contended that he did not advise the clients but provided them with “factual advice” or […]

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fsca

FSCA fines Brite Advisors and former director R12.5m

The FSCA has fined Brite Advisors South Africa (Pty) Ltd and a former director of the group, Nigel James Green, a total of R12.5 million. The Authority said an investigation found that Brite, which was formerly known as deVere Investments South Africa (Pty) Ltd, and deVere SA Acuma (Pty) Ltd, contravened various financial sector laws […]

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debarment

Tribunal doesn’t accept debarred rep’s attempt to walk back admission

The Financial Services Tribunal (FST) as upheld the FSCA’s decision to debar a life insurance representative who admitted that she submitted unauthorised policy applications but subsequently sought to qualify her admission. What is interesting about this case is that it provides clarity on the process involved when the FSCA debars a rep, rather than the […]

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balance

Tribunal: ‘true test’ for debarment is balance of probability

The case for debarring a representative must be established on a balance of probability, not prima facie findings, the Financial Services Tribunal (FST) said when it upheld a representative’s application for his debarment to be set aside. Assupol Life debarred Neo Makhutja for allegedly forging a client’s signature on a policy. It refunded the complainant […]

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Representative ‘conspired’ with client to have complaint withdrawn

A representative conspired with a client in an attempt to have the complaint against him withdrawn, the Financial Services Tribunal said in its decision to uphold his debarment. Sanlam Developing Markets (SDM) debarred Bongumenzi Zungu after finding that he submitted an application for a policy without the client’s knowledge or consent. The client became aware […]

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