‘A key individual is not only responsible to oversee the categories of financial services for which he is licensed, but he bears an oversight role in relation to the FSP generally.’
An affidavit from the client contradicts the bank’s version that the representative acted fraudulently.
The Financial Services Tribunal hears the reconsideration applications brought by three of the 15 implicated agents.
FNB argued the Tribunal should accord greater weight to the severity of the rep’s misconduct than to ‘procedural mis-steps’.
The FST emphasises that labour-related and FAIS-related matters are distinct.
The FST questions why he would take a call on his private cellphone from a friend of a friend and access confidential information without authority.
The debarment procedure did not comply with the FAIS Act in a number of ways, the FST finds.
The Financial Services Tribunal hears another case involving a representative who ‘completed’ proof of address letter on clients’ behalf.
The fact that the applicant did not sell any products or receive remuneration did not nullify his status as a representative.
Standard Bank debarred a branch team leader for using her own money to activate four accounts without the customers’ consent.
The jurisdictional fact required for the debarment was absent.
The Tribunal reiterates that FSPs should not issue a debarment purely on the outcome of a disciplinary hearing.
Craig Massyn submits the penalties imposed on him were disproportionately large compared to those imposed on the other directors of the Praesidium Group.
No evidence that staff were instructed to verify prospective clients’ addresses using blank letters provided by the municipality, FST finds.
Two recent decisions by the tribunal highlight misconceptions about debarment that need to be dispelled.
FNB debars consultant who issued unauthorised letters stating a company was good for up to R900 million in credit.
The former bank manager’s actions were driven by desperation, but the FAIS Act is not forgiving, the tribunal says.
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