Q&A: Who will bear the cost of MetCI’s R100m fine?
Momentum Metropolitan Holdings to appeal against regulator’s decision
Q: The Financial Sector Conduct Authority (FSCA) imposed a R100m fine on Met Collective Investments (MetCI) after an investigation into a 66% loss on the Third Circle MET Target Return Fund in December 2015. What does this mean for investors? Who will actually pay the fine or bear the cost of the fine? — Name withheld
A: Jurgen Boyd, the executive in charge of the market integrity division at the FSCA, says no investors will be affected by the fine. MetCI, as a collection investment schemes manager, was in contravention of various laws including the Collective Investment Schemes Control Act and regulatory action was taken against the licensed entity only. (MetCI’s holding company Momentum Metropolitan Holdings has said it will appeal against the regulator’s decision. — the Editor