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Tag Archives | Financial Services Tribunal

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Employer duty to pay contributions only ceases when a disability claim is registered

An employer’s obligations to pay contributions to a provident fund ceased when the fund registered the member’s disability claim, not when his contract of employment ended, the Financial Services Tribunal has ruled. The fund member’s employment with Gauteng Coaches (Pty) Ltd was terminated for medical reasons on 30 November 2020. After Gauteng Coaches advised the […]

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Employers cannot shirk their obligations if an employee is on sick leave

Employer cannot shirk its obligations if an employee is on sick leave

Retirement funds should ensure employers are aware of their obligation to pay contributions, even while their employees are absent from duty. This was said by the Financial Services Tribunal when it upheld a determination by the Pension Funds Adjudicator that an employer had to pay a death benefit recalculated to take account of outstanding contributions. […]

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West-Pro was dishonest about underwriting of funeral policies, tribunal finds

West-Pro was dishonest about underwriting of funeral policies, tribunal finds

The Financial Services Tribunal has upheld the debarment of West-Pro Holdings’ managing director and key individual for falsely claiming that the administrator’s funeral policies were underwritten by Old Mutual. It also upheld the FSCA’s decision to suspend West-Pro’s FSP licence. In January 2020, the FSCA debarred Ernest Arendse for eight years for no longer satisfying […]

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All employees in private security sector must belong to provident fund

All employees in private security sector must belong to provident fund

All employees in the private security sector, irrespective of their job description, must become members of the Private Security Sector Provident Fund, and likewise all employers in the sector must participate in the provident fund. If this seems to be stating the obvious, the Financial Services Tribunal found it necessary to spell this out in […]

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Opinion that a fund’s benefit allocation is unfair isn’t grounds for interfering

Opinion that a fund’s benefit allocation is unfair isn’t grounds for interfering

A decision made by a fund’s trustees can be interfered with only where it can be shown that they have taken irrelevant, improper and irrational factors into consideration, and where it can be shown that no reasonable board of trustees, properly directing itself, would have reached such a decision. This was said by the Financial […]

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Ex-wife loses out – settlement agreement not in line with Divorce Act, PFA

Ex-wife loses out – settlement agreement not in line with Divorce Act, PFA

A case that came before the Financial Services Tribunal has underscored the importance of ensuring that divorce settlements conform to the provisions of the Pension Funds Act and the Divorce Act when addressing the apportionment of a pension interest. The applicant was married to the fund member for almost 30 years. He took out two […]

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Forgive and forget – so ‘no need’ to disclose debarment

Forgive and forget – so ‘no need’ to disclose debarment

The owner of a brokerage asked the Financial Services Tribunal to award him R2 million in damages because the FSCA refused to grant his firm an FSP licence. The regulator rejected the firm’s licence application because its sole key individual, director and shareholder did not comply with the fit and proper requirements. The tribunal also […]

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NEW IMAGE - Tribunal upholds JSE directive that Trustco must restate its financial results

Tribunal upholds JSE directive that Trustco must restate its financial results

The Financial Services Tribunal has upheld the JSE’s directive that Namibia-based Trustco must restate its financial statements for the year to 31 March 2019 and its interim results to 30 September 2019, because they did not comply with the International Financial Reporting Standards (IFRS). The accounting “errors” pushed up Trustco’s profits by N$2.1 billion. The […]

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Tribunal not impressed with how FNB debarred employee for the second time

Tribunal not impressed with how FNB debarred employee for the second time

The Financial Services Tribunal has expressed its disapproval of the way in which FNB debarred a representative – and it set aside the employee’s debarment for a second time. FNB dismissed and debarred the representative, because, it said, she intentionally misled the bank about her hours of work. The applicant said she was presented with […]

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