FSCA warns against buying a funeral policy from Smartbold
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The Financial Sector Conduct Authority (FSCA) warns against dealing with an entity called Smartbold, which is offering financial services without the necessary authorisation. The FSCA says it has reason to suspect that Smartbold is conducting unregistered long-term insurance business by selling funeral policies to members of the public. In terms of Section 5(1) of the Insurance Act, a company needs to be licensed under the Act to sell insurance policies. Smartbold does not have the required licence. Smartbold also requires a Financial Services Provider licence from the FSCA, which it does not have. The FSCA says it is highly likely that the company is conducting unregistered business, which is a criminal offence.
The FSCA reminds consumers who wish to conduct financial services with accompany or individual to check beforehand with the FSCA on either the toll-free number (0800 110 443) or on the website www.fsca.co.za as to whether or not such entity is authorised to render financial services, and in particular which financial products they are licensed to offer.