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Tag Archives | Financial Services Tribunal

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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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rules-break

Tribunal recommends investigation of pension fund, its administrator and trustees

The Financial Services Tribunal (FST) has set aside decisions by both Liberty, the pension fund administrator, and the Pension Funds Adjudicator (PFA), and recommended that the FSCA should consider taking regulatory action against the fund, its trustees and the administrator. Background The applicant contested the quantum of the retirement benefit paid out to him. He […]

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signing

‘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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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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legal

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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time-barred

No happy ending at the tribunal for couple who reconciled after divorce

The Financial Services Tribunal (FST) has dismissed a reconsideration application by a couple who wanted to be provided with a joint-and-survivorship pension because they reconciled and lived together as if married after their divorce. Two issues came into view in this case: The application of section 30I of the Pension Funds Act (PFA), which addresses […]

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