Adviser fined R150 000

The Financial Services Board (FSB) Enforcement Committee has fined Mpumalanga financial adviser Matthys Johannes Marais, of Protea Makelaars, R150 000 for numerous contraventions of legislation designed to protect consumers.

The Enforcement Committee found that Marais contravened the Financial Advisory and Intermediary Services (FAIS) Act by failing to:

* Maintain a register of his representatives, their details and advice mandates;

* Appoint a compliance officer;

* Use procedures and systems that could be expected to eliminate, as far as reasonably possible, financial losses by clients and product providers through theft, fraud, other dishonest acts, poor administration, negligence, professional misconduct or culpable omissions;

* Render financial services fairly with due skill, care and diligence, and in the interests of his clients and the financial services industry; and

* Conduct a financial analysis on some clients or keep a record of the advice given to these clients, while some clients were not provided with details of the financial products they were sold.


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