The Financial Sector Conduct Authority (FSCA) has recently made an official statement in regards to the Afrikan Financial Services, that they will be fined R2.5m and debarred the company’s key directors for ten years from providing or being involved in the provision of financial services.
The regulator stated in a statement that Mbalenhle Valentia Khuzwayo, the key person at Afrikan, and Buhlebenkosi Mayibongwe Nala, a director at Afrikan, have both agreed to the FSCA’s administrative and regulatory action imposed after they were found to have breached various financial sector laws.
The FSCA has warned the public against doing any financial services-related business with the company.
It was said that Afrikan’s licence was withdrawn on November 22 2019 for contravening section 7(1) of the Financial Advisory and Intermediary Services Act of 2002 (FAIS Act). Afrikan was furnishing advice in respect of deposits and rendering intermediary services in relation to a long-term policy without being authorized.
“Despite Afrikan not being registered or authorized as a short- or long-term insurer, it offered various insurance products to members of the public, thereby contravening insurance legislation” FSCA said in a statement.
The FSCA urged consumers to check the credentials of financial services institutions and FSPs before conducting any business with them. You can check with the FSCA by calling 0800 203 722 toll free, or visiting www.fsca.co.za to see if such institution or person is authorized to render financial services, and for which product(s).