The Financial Services Board's (FSB) enforcement committee has imposed a penalty of R100,000 on African Unity Insurance Limited (African Unity).
The registrar alleged that African Unity contravened the Financial Advisory and Intermediary Services Act in that it entered into an agreement with Nothemba Funeral and Financial Services CC, the FSB said in a statement on Monday.
In terms of the agreement, Nothemba marketed insurance financial products on behalf of African Unity.
While marketing the products, Nothemba was not authorised to act as a financial services provider in terms of the Act.
Nothemba was only licensed on August 11, 2010.
The Registrar of Financial Services Providers agreed on the penalty in terms of the Financial Institutions (Protection of Funds) Act.
In arriving at an appropriate penalty, the registrar considered that there was no prejudice resulting from the contravention; that African Unity accepted accountability and was remorseful for its actions, and that the contravention was as a result of a bona fide oversight, the FSB said.
The Enforcement Committee is an administrative body that has the authority to impose administrative penalties, cost orders, and compensatory orders on offenders of FSB legislation. - Sapa