Legislative Changes and Developments
ASB seeks comment on materiality exposure draft
Comment is sought by 26 February 2021 on an Accounting Standards Board exposure draft focusing on ‘the effects of past decisions on materiality’, reports CompliNEWS contributor Pam Saxby. This is noting that – in terms of the 1999 Public Finance Management Act – the board is responsible for determining generally ...
Commentary on Legislative Changes and Development
Prudential Authority, FSCA functions clarified
Until 31 March 2024, the functions of the Prudential Authority and the Financial Sector Conduct Authority (FSCA) in relation to medical schemes – and the associated powers and duties of these two authorities in terms of the 2017 Financial Sector Regulation Act – ‘must be exercised by the Council for ...
News from the Regulators
FSCA awarded judgment in matter pertaining to Public Protector’s flawed report
Public Protector Busisiwe Mkhwebane was on the wrong side of yet another judgment late last week when the Gauteng High Court (Pretoria) set aside her adverse finding against SA’s financial sector watchdog. A Business Day report says Mkhwebane, in her official capacity, was ordered to pay costs of the Financial Sector ...
FSCA request for information on add-on insurance policies sold at point of sale through motor dealerships or as part of vehicle financing arrangements
The Financial Sector Conduct Authority (FSCA), under s 131 of the Financial Sector Regulation Act 9 of 2017 (FSRA), has requested all licensed insurers to furnish information to it on add-on insurance policies sold to customers at point of sale through motor dealerships or as part of vehicle financing arrangements, for ...
FSCA exempts a further 44 funds in terms of Board composition
The Financial Sector Conduct Authority (FSCA), under section 7B(1) of the Pension Funds Act (PFA) 24 of 1956, read with section 281(3) of the Financial Sector Regulation Act 9 of 2017, has exempted a further 44 funds from the provisions of section 7A(1) of the PFA.
FSCA withdraws the licence of Basfour 3773 (Pty) Ltd t/a Oinvest (FSP 42020) and debars Ms Jane Engelbrecht
The Financial Sector Conduct Authority (FSCA) has withdrawn the FSP licence of Basfour 3773 (Pty) Ltd t/a Oinvest (FSP 42020), debarred Ms Jane Engelbrecht who is the sole director, Key Individual (KI) and a representative of Basfour, for a period of 10 years and imposed an administrative penalty of R58 ...
Australian Federal Court imposes $75 million penalty on OTC derivative issuer AGM Markets and former authorised representatives
On 16 October 2020, the Federal Court ordered that AGM Markets Pty Ltd (AGM), OT Markets Pty Ltd (OTM) and Ozifin Tech Pty Ltd (Ozifin), pay a total of $75 million in pecuniary penalties.
AGM has been ordered to pay $35 million, while OTM and Ozifin have each been ordered ...
JSE hits Steinhoff with R13.5m fine
Legalbrief Today Issue 5047
The Johannesburg Stock Exchange has fined retailer Steinhoff a total of R13.5m for breaching its listing requirements, according to a Fin24 report. This includes a maximum possible fine of R7.5m for publishing ‘incorrect, false and misleading’ information in its previous financial statements. ‘The accuracy ...
FST case summary involving Osgood and Discovery Life and another
By Shamaa Sheik
The following matter was handed down in the Financial Services Tribunal on 19 October 2020:
- Marie Elise Osgood (Applicant) and; Discovery Life (1st Respondent) and The Ombud for Financial Services Providers (2nd Respondent) – (case number: FAB 70/2020)
Application for reconsideration – complaint – ...
Discovery, doctor poised for R30m lawsuit battle
Legalbrief Today Issue 5046
A multimillion-rand litigation battle is brewing between insurance giant Discovery Life and a gynaecologist, who is headed to court on Friday. News24 notes the gynaecologist, Dr Patrick Tigere, is counter-suing Discovery for about R30m. At the heart of Tigere's dispute with Discovery are the ...
'Fronting' remains an issue, says commission
Legalbrief Today Issue 5047
The commission monitoring compliance with empowerment legislation says it has received almost 700 complaints of fronting – in which ‘token’ black people are passed off as company shareholders – in the past four years. The Broad-Based BEE (B-BBEE) Act, which aims to increase black participation in ...
Man accused of investment fraud worth R40m gets bail
A man arrested for R40m investment fraud has been granted R20 000 bail. According to an IoL report, Matthew Charles Dunn appeared at the Palm Ridge Specialised Commercial Crimes Court, where he was granted bail, the Hawks said on Tuesday. Hawks Gauteng spokesperson Captain Ndivhuwo Mulamu said Dunn was arrested at ...
UK regulator proposes additional measures to help insurance customers in financial difficulty
The Financial Conduct Authority (FCA) in the UK has published proposals on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of coronavirus (COVID-19), after 31 October 2020.
This guidance follows the temporary measures that have ...
ASIC letter to insurers, Lloyd’s coverholders and brokers in respect of business interruption
The Australian Securities & Investment Commission (ASIC) has written to insurers, Lloyd’s coverholders and brokers about handling business interruption insurance claims arising from the COVID-19 pandemic.
The letter outlines:
- ASIC’s work in relation to business interruption insurance policies held by small businesses.
- How general insurers, Lloyd’s coverholders and brokers should ...
Royal Commission witness and former financial adviser Sam Henderson sentenced in Australia
Mr Sam Maxwell Henderson, former chief executive officer, director and senior financial adviser of Henderson Maxwell Pty Ltd (Henderson Maxwell), has on Tuesday been sentenced in the NSW Local Court.
Mr Henderson has been convicted of charges relating to issuing defective disclosure documents and dishonest conduct and will enter into a ...
G20 supports the FATF’s work to address money laundering and terrorist financing risks arising from the COVID-19 pandemic
Societe Generale Securities Australia Pty Ltd receives $30,000 penalty for breaching client money rules
FSCA issues a communication on meeting extended deadlines due to the impact of COVID-19
The Financial Sector Conduct Authority (FSCA) has acknowledged the impact of COVID-19 on the financial services industry and the challenges that FSPs, key individuals and representatives might have faced in complying with various regulatory requirements.
As a result, the Authority, during April 2020, granted exemption and/or extension in respect ...
Reminder re COB, RE, qualification FSCA deadlines
Failure to complete the compulsory Regulatory Examinations, Class of Business Training (where applicable), or qualifications by the due date means that you are no longer fit and proper.
FSPs will have no option but to terminate employment of representatives, either by removing them from the representative register until such time ...
Being professional during an online meeting
By Lee Rossini
Even though lockdown has meant a return to face-to-face (albeit with precautions in place) meetings, there is no doubt that the use of technology instead of face-to-face meetings has remained high. The question is: what can you do to ensure that you remain visible and make an impact ...
Data protection – Exemption of JLT Employee Benefits from certain provisions of the General Code of Conduct, 2020
The Financial Sector Conduct Authority (FSCA), under section 44(4) of the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS Act), read with section 281(3)(b) of the Financial Sector Regulation Act 9 of 2017, has exempted JLT Employee Benefits SA (Pty) Ltd from certain provisions of ...
ICO finalises 20m GBP fine against British Airways for major data protection failures
The wait for one of the U.K. Information Commissioner's Office's (ICO) most stringent enforcement actions is over. The ICO announced it levied a final penalty of 20 million GBP against British Airways – the DPA's largest fine to date – over violations of the EU ...
NAMFISA releases 2020 Annual Report
The Namibia Financial Institutions Supervisory Authority (NAMFISA) released their 2020 Annual Report. The Board Chairperson, Mr Gersom R Katjimune, said in the Foreword:
'While continuing the transition toward Risk based Supervision (RBS) to improve the regulatory and supervisory framework of the NBFI sector in Namibia, the Authority awaits the promulgation ...