FSCA imposed about R943 million in penalties and debarred 156 people

The Financial Sector Conduct Authority (FSCA) imposed about R943 million in administrative penalties on 31 people, a significant increase from the previous year’s R100 million imposed on 44 people, while it also debarred 156 people and suspended the licences of 1 061 financial service providers in the financial year 2023/24.

The 2023/24 Integrated Report of the FSCA was successfully tabled in Parliament, giving an overview of the FSCA’s performance from 1 April 2023 to 31 March 2024.

“We continue to be very intentional about protecting consumers and preserving the integrity of our sector. The increase in administrative penalties demonstrates our commitment to credible deterrence and raising awareness of the regulatory requirements of the financial sector,” Unathi Kamlana, FSCA commissioner, says.

“We strengthened our oversight mechanisms to detect and address misconduct promptly and enhanced our collaboration with stakeholders. As a result, we registered 483 new investigation cases and finalised 418.

ALSO READ: FSCA fines Middelburg insurance broker R1 million and debars her for 15 years

FSCA suspended 1 061 licences of financial service providers

“In addition, we suspended the licences of 1 061 financial service providers, withdrew 75 licences and debarred 156 individuals. These decisive enforcement actions demonstrate that we stand ready to take deterrence actions to protect the integrity of the financial sector in line with our strategic objective of acting decisively and visibly against misconduct.”

Kamlana says the FSCA’s approach is to ensure visible, meaningful and procedurally fair action against people who pose a risk to the fair treatment of financial customers and the efficiency and integrity of the financial system.

“This robust enforcement approach boosts our ability to protect financial customers and diligently pursue transparent and effective administrative action against offenders.”

ALSO READ: FSCA’s Regulatory Actions Report shows impressive numbers of enforcement

FSCA enforcement of Financial Sector Regulation Act

By 31 March 2024, the FSCA opened 518 new investigation cases, finalised 371 and had 426 ongoing cases related to the Financial Sector Regulation Act. The majority of the FSCA’s investigation cases relate to unauthorised financial advisory and intermediary services and insurance businesses.

The FSCA undertook 60 enforcement actions, which included 19 administrative actions, 7 debarment orders and 34 enforceable undertakings. The majority of the enforceable undertakings related to unregistered insurance and most of the debarments involved dishonest conduct.

During 2022/23, the FSCA opened 667 cases and ended the year with 207 ongoing investigations. Enforcement actions taken included 1 900 regulatory actions and 217 debarment orders.

In addition, the FSCA suspended 621 licences. The majority of the suspensions and withdrawals were related to non-submission of statutory returns and/or non-payment of levies, while most of the debarments involved dishonest conduct.

ALSO READ: Secrecy surrounded Jooste’s big FSCA fine and arrest warrant

R475 million of R923 230 068 was for Markus Jooste

The FSCA imposed administrative penalties of R923 230 068 on 19 investigated parties, which includes one leniency agreement. R475 million of the total was issued against Markus Jooste. Most of the administrative penalties imposed related to non-compliance with the Financial Advisory and Intermediary Services Act.