The recently updated Financial Services Tribunal Consolidated Rules contain the following stipulations regarding time frames: An application for reconsideration must be made: if the applicant requested reasons in terms of section 229 of the Act, within 30 days after the statement of reasons was given to the applicant or in all other cases, within 60 days […]
An interesting recent finding by the Financial Sector Tribunal sheds some light on how sec 14(5) of the Financial Sector Regulation Act 9 of 2017 should be interpreted. The applicant applied for the reconsideration of his debarment under sec 14 of the Financial Advisory and Intermediary Act 37 of 2002 by the respondent. The original […]
Regular readers will know that I have expressed my frustrations in the past with people who approached the Financial Sector Tribunal for leniency despite being blatantly dishonest. A recent decision by the Tribunal had a different slant, but the same result. A young man, after making a human error, followed the wrong path to try […]
A recent Financial Sector Tribunal decision raised two very interesting perspectives on when dishonesty should not be used as grounds for debarment. Case number one The debarment was based on a finding that the applicant lacked the quality of honestly. He was found guilty of misconduct and dishonesty in terms of the Bank’s Disciplinary Code […]
A fundamental character trait of a person who provides financial services and furnishes advice to members of the public is honesty and integrity. This goes hand in hand with conducting business with the necessary due skill, care and diligence. If an adviser fails to meet these requirements, and the correct disciplinary process is followed, he […]
On 1 April 2018, the debarment process under the FAIS Act was amended by the Financial Sector Regulation Act 9 of 2017 (FSRA). Since then, many debarment cases have been referred to the Tribunal. In some cases, the outcome was that the debarments have been uplifted and in some it was remitted back to the FSP […]
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 […]
Cheating, fraud and many other forms of unethical behaviour are amongst the biggest personal and societal challenges of our time. In South Africa, we are confronted daily by media reports concerned with allegations of corruption and fraud. While the media highlights the more extreme examples, less, or in most cases, no exposure is given to […]
by Joani van Vuuren, Shane Johnson, Siya Ngcamu of Webber Wentzel In a recent decision, the Supreme Court of Appeal (SCA) considered the interplay between disciplinary inquiries convened under the Labour Relations Act 66 of 1995 (LRA) and debarments of representatives under the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS Act). The […]
Sales staff turnover in the financial services industry has always been notoriously high. Of late, it has become evident, from decisions by the Financial Services Tribunal, that due process was not always followed to the letter. In fact, some of the biggest mistakes were made by institutions with more than enough legal and compliance knowledge […]
