FSB fines brokerage R150 000

Illustration: Colin Daniel

Illustration: Colin Daniel

Published Oct 31, 2015

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The enforcement committee of the Financial Services Board has fined Rowe Hooper Insurance and Investment Brokers R150 000 after the brokership was referred to the committee by the Registrar of Financial Services Providers.

The referral related to contraventions of the financial services providers’ code of conduct and the Financial Advisory and Intermediary Services Act.

The registrar established that, from November 2012 to June 2014, the brokership kept records of advice pertaining to specific clients, but the advice recorded was never provided to the clients. It also failed to conduct a suitability analysis on these clients before they took out insurance policies, and it conducted financial services business with someone not authorised to render financial services, according to the registrar.

The parties agreed on a penalty of R150 000. The registrar took into account that the contravention was the result of a misunderstanding by the brokership regarding the application of the relevant legislation and the fact that it acted promptly to rectify matters.

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