COMPLIANCE AWARENESS
24 February 2025
The Financial Sector Conduct Authority (FSCA) has imposed an
administrative penalty of R11 495 001 on Sanda Funeral Home (Pty)
Ltd (Sanda Funeral). The FSCA has further debarred the directors Ms Zisanda
Sanda (Ms Sanda) and Mr Sandile Michael Sanda (Mr Sanda) for a period of 20
years and 10 years respectively.
The administrative penalty imposed on Sanda Funeral was as a result of
an investigation by the FSCA that found that Sanda Funeral were issuing life
insurance policies without being licensed as an insurer and rendering financial
services without being authorised as a financial service provider.
The investigation by the FSCA found that Sanda Funeral were in contravention of the following;
Section 7(1)(a) of the Financial Advisory and Intermediary Services Act 37 of 2002 - by rendering financial services without being duly authorised to do so.
Section 5(1) of the Insurance Act 18 of 2017 – by conducting insurance business without the licence to do so.
As a result of the contraventions Mr Sanda and Ms Sanda have been prohibited from:
providing, or being involved in the provision of, financial services;
acting as key person of financial institutions; and
providing financial services to a financial institution, whether under outsourcing arrangements or otherwise.
This is a reminder to
financial service providers to avoid rendering financial services or conducting
Insurance business that they are not authorised for, rendering financial
services without authorisation may result in administrative penalties from the
Financial Services Conduct Authority.
Should you require clarity, guidance or more information, please contact
us via email on clientservices@tshedzacp.co.za.
Prepared by: Tshedza Compliance Awareness Desk
Source: FSCA Press Release
FSCA WITHDRAWS FSP LICENCE FOR CONTRAVENING THE FAIS ACT AND SUBORDINATE LEGISLATIONS
31 March 2025
The
Financial Sector Conduct Authority (FSCA) has withdrawn the licence of Vumani
Financial Services (Pty) Ltd (FSP 51565), with effect from the 27th
February 2025.
The
withdrawal of Vumani Financial Services’ licence was as a result of an
investigation by the FSCA that found that Vumani Financial Services was in
contravention of various sections of the FAIS Act, The General Code of Conduct
for Financial Service providers, The Determination of Fit and Proper
Requirements for Financial Services Providers and The Financial Sector and
Deposit Insurance Levies Act.
The investigation by the FSCA found that Vumani Financial Services was in contravention of the following;
Section 8A(a) of the Financial Advisory and Intermediary Services Act 37 of 2002 – The Directors of Vumani Financial Services failed to comply with the Fit and Proper requirements of honesty, integrity and good standing.
Section 19(1) and 19(2) of the Financial Advisory and Intermediary Services Act 37 of 2002 – Vumani Financial Services failed to submit their annual financial statements to the FSCA within 4 months from the date of the financial year end.
Section 3 of the Financial Sector and Deposit Insurance Levies Act 11 of 2022 – Vumani Financial Services failed to pay their FSCA annual levies.
This is a reminder to Financial Service Providers to ensure that they always adhere to the Fit and Proper requirements and are always in good standing. Financial Service Providers are also encouraged to ensure that they pay their annual levies and submit their audited accounting records to the Authority. Failure to comply with these requirements may result in a withdrawal of your licence from the Financial Services Conduct Authority.
Should you require clarity, guidance or more information, please contact us via email on clientservices@tshedzacp.co.za.
Prepared by: Tshedza Compliance Awareness Desk
Source: FSCA Press Release
1 April 2025
The FSCA’s investigation into Hernell Funerals, Mr Peterson and Mrs
Peterson revealed that the three offered life-insurance policies to members of
the public without the required authorisation, in contravention of:
- Section 7(1) (a) of the
Financial Advisory and Intermediary Services Act No.37 of 2002 (the FAIS Act), which
requires anyone who provides financial services to only do so having acquired
authorisation from the FSCA.
- Section 5(1) of the Insurance Act No. 18 of 2017, which states that no person may conduct insurance business in the Republic unless that person is licensed under the same Act.
This is a reminder to all
Financial Services Providers (FSPs) to only provide financial services they are
authorised and licensed to and where an FSP wishes to render financial services
other than those they are licensed for, they first seek the necessary
authorisation from the FSCA before they provide such financial services to
members of the public.
Should you require clarity, guidance or more information, please contact
us via email on clientservices@tshedzacp.co.za.
Prepared by: Tshedza Compliance
Awareness Desk
Source: FSCA Press Release
January 2025
The FSCA has in 2008 realised that the Financial Service industry is ever changing (evolving) and as a result it recognised and taken the decision to implement the Fit and proper requirements of Continuous Professional Development (“CPD”) for FSPs, Key individuals, and representatives.
One of the aims of introducing the CPD was the professionalisation of the Financial Service industry. Since 2018, it is a requirement for representatives and KIs (excluding those who are rendering financial service on funeral insurance products only) to accumulate CPD points on annual basis.
Key to this CPD requirement is for FSPs to develop policies, procedures, process , system etc to comply with ease, including record keeping capabilities.
How many points are
representatives required to complete?
The CPD cycle runs from 01 June to
31 May of the following year. The CPD points that representatives are expected
to complete depends on number of products/subclasses that they are selling.
Below is the information
summarised for easy reading.
- If you render financial services for a single subclass of business within a single class of business e.g. FSP, KI or Representative with only Personal Lines: Motor Policy, then one must complete a minimum of 6 hours of CPD activities per CPD cycle
- More than one subclass of business within a single class of business e.g. FSP, KI or Representative with Personal Lines: Motor Policy and Personal Lines: Liability Policy then one must complete 12 hours of CPD activities per CPD cycle.
- More than one class of business e.g. FSP, KI or Representative with Short-term Insurance Personal Lines, Long-term Insurance and Investments then one must complete 18 hours of CPD activities per CPD cycle
As per our last awareness Tshedza
CP compliance desk, we are now accredited to offer CPD points and intend to
roll out same before end of January 2025.
We shall update you in few weeks’
times on the roll out of CPD offering
and related information.
Keep on perusing our website (www.tshedzacp.co.za,
WhatsApp channel https://whatsapp.com./channel/0029VaxRcuhBvvsWhXxg1w1C and WhatsApp (069 715 5770) for
the latest on CPD offerings etc.
Should you wish to contact us for additional information, please do so via :cpd@tshedzacp.co.za or dial 011 297 7280.