On 4 November 2024, the FSCA imposed yet another large administrative penalty of R 30 million and a 30-year debarment each on Mr SC Jansen van Rensburg and FY du Preez, a R 8 million administrative penalty on Mr JJS Jansen van Rensburg with a 20-year debarment, and an additional 10-year debarment for Mr EC Janse van Rensburg. These penalties were imposed in relation to investigations concerning these individuals’ handling of their clients’ funds where investments were made without their clients’ requisite mandate and into entities note regulated by the FSCA. 

The investigations identified contraventions of the FSR Act, FAIS Act, FI Act, the Code of Conduct and the Determination of Fit and Proper Requirements for FSPs. The FSCA has also confirmed that it has handed over its investigation report to the NPA for criminal prosecution. 

This was on the back of the FSCA’s latest imposition of large penalties in the Botha / CBI and van Wyk / Wenru decisions earlier this year, which saw brokers receiving administrative penalties of R 216 million with a 10-year debarment and R 1 million and 15-year debarment, respectively.

This is once again another reminder to brokers operating within the financial services space to adhere to their obligations and duties owed to their clients in terms of the various legislation that regulates their conduct, but also a warning that their conduct can be both criminally and civilly prosecuted too.