Stanlib ordered to repay fees it was not permitted to charge
The asset manager has been forced to pay back an undisclosed amount of performance fees to investors
Stanlib insists that there will be minimal damage to its reputation after the regulator fined it for charging performance fees it wasn't entitled to because this had resulted from an administrative oversight. The Financial Sector Conduct Authority (FSCA) said on Wednesday it had fined the asset manager, which is owned by insurance group Liberty, R500,000 after it charged investors in some of its investment portfolios fees that were not disclosed in legal documents. Stanlib has paid back the money. “I would have been more concerned about brand damage if we never disclosed to investors that the funds had performance fees. Investors were fully cognisant of that fact," said Stanlib CEO Derrick Msibi. Msibi said the amount paid back to investors in the form of increased unit prices was less than 10% of the profit the company made last year. Stanlib SA posted earnings of R252m in 2017. The fiasco comes at a sensitive time for active asset managers globally as their fees and transparency c...
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