Tag Archives | FAIS act

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Quo vadis, compliance reporting?

The process involved in replacing the old compliance reports, which were last required for the 2017 financial year, reminds me of a joke in a rag magazine, many years ago, about a new book written by the Pope called “The Pill’s grim progress”. The FAIS Act became effective in September 2004. Over time, it became […]

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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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‘Fund member should lodge a complaint against his adviser, not the Adjudicator’

The Financial Services Tribunal (FST) has upheld a decision by the Pension Funds Adjudicator to dismiss a complaint against a Discovery preservation fund, saying the applicant’s complaint was, in fact, against his financial adviser. The applicant, “IK”, joined the Discovery Classic Pension Preserver Plan in 2014. More than R5.3 million was transferred from his previous […]

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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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FSCA appoints statutory manager for N-e-FG Administrators

The FSCA has appointed a statutory manager for N-e-FG Administrators (Pty) Ltd, saying it is concerned about N-e-FG’s failure to manage the funds it administers responsibly. It is also investigating N-e-FG’s conduct relating “to certain life insurance annuity policies”. The FSCA withdrew N-e-FG’s licence on 22 December last year for contravening the FAIS Act, the […]

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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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Tribunal sends Sharemax determination back to the FAIS Ombud for a second time

Between 2008 and 2010, a pensioner couple invested in two Sharemax property syndications. They complained to the FAIS Ombud in 2011 after losing their money. Seven years later, the FAIS Ombud issued a determination ordering their adviser to pay them R749 000 (with interest of 10% a year accruing from the date of the determination). Last […]

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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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Adviser not liable for Sharemax investors’ loss, says tribunal

The Financial Services Tribunal (FST) has upheld a reconsideration application by an FSP whose clients invested in a Sharemax-managed property syndication scheme, saying his provision of inappropriate advice did not necessarily mean he was liable for their loss. Last month’s ruling brings to three the Sharemax-related determinations set aside by the FST since September last […]

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