The Financial Services Board (FSB) has fined computer company Dell South Africa R100 000 for contravening the Financial Advisory and Intermediary Services Act.
From November 1, 2015 to June 3, 2016, Dell collected premiums in respect of insurance products that covered accidental damage to Dell hardware sold to customers.
The selling of insurance constituted a financial service and required that Dell be authorised by the FSB to do so, which it was not.
As aggravating factors, the registrar for Financial Services Providers considered that Dell had been advised to obtain authorisation prior to collecting premiums. In mitigation, the registrar considered that Dell had accepted responsibility for its actions, co-operated during the enforcement process, settled all the claims it received and rectified matters by obtaining the necessary authorisation.
The parties agreed on an administrative penalty of R100 000, which was imposed by the FSB’s enforcement committee on March 14.