Enforcement Committee fines lawbreakers

The Enforcement Committee of the Financial Services Board (FSB) recently handed down the following fines:

* Two businessmen, Nazeem Hendricks and Chuene James Mohlaba, were fined R5 million each for manipulating share prices on the JSE.

The Enforcement Committee found that Hendricks and Mohlaba had contravened the Securities Services Act by manipulating the share prices of Afgri Limited, Metair Investments Limited and Palabora Mining Limited from January to March 2009, and the share price of Comair Limited during March 2010.

* Businessman Johan Klue Collins was fined R31 500 for contravening the Securities Services Act for trading 150 000 Africa Cellular Towers shares while in possession of inside information.

* Southern Africa Quantum Employee Benefits (Pty) Limited was fined R100 000 for contravening the Financial Advisory and Intermediary Services (FAIS) Act between February 2009 and February 2011, because it rendered financial services in respect of long-term insurance funeral benefit, group life and credit life policies without a licence.

* Gauteng financial services provider Moremodiegisa Financial Services and its owner, Mohale Setlhare, were fined R20 000 for contravening the FAIS Act. The FSB did not provide further details about the nature of the offence.

* FedGroup Employee Benefits (Pty) Limited was fined R10 000 for contravening the Pension Funds Act by failing to maintain liquid assets equal to or greater than 8/52 of its annual expenditure.

* Scientia Actuaries and Consultants (Pty) Limited was fined R10 000 for contravening the Pension Funds Act, because it failed to maintain sufficient current assets to meet its current liabilities and also failed to maintain liquid assets equal to or greater than 8/52 of its annual expenditure.

The Enforcement Committee is an administrative justice body that may impose penalties, compensation orders and cost orders on respondents that are found to have contravened any law administered by the FSB.