The enforcement committee of the Financial Services Board (FSB) has fined MET Collective Investments, the unit trust manager subsidiary in the MMI group, which administers white-label funds on behalf of a number of smaller providers, for contravening the Collective Investment Schemes Act.

The FSB says that the Registrar of Collective Investment Schemes, who referred the case to the enforcement committee, established that MET Collective Investments had "failed to organise and control" the schemes under its administration "in a responsible manner" when it failed to amend the Fairtree MET Flexible Balanced Fund’s supplemental deed to reflect the portfolio investment policy change from multi-asset high equity to multi-asset medium equity.

The parties agreed on a penalty of R20 000, which was imposed by the enforcement committee on June 5. In arriving at an appropriate penalty the Registrar took into account inter alia that the respondent expressed regret for its actions, admitted the contravention and gave its full cooperation during the process to correct the matter.

A copy of the order is available on the FSB website: www.fsb.co.za