Momentum saga is the ‘leadership blunder of the year’, Outa says
The Treasury's Ismael Momoniat has referred the matter to the Financial Sector Conduct Authority for investigation
Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (Outa), lashed out at Momentum on Wednesday, calling its U-turn to pay a widow R2.4m after initially refusing the life pay-out, a "farce". At the same time, deputy director general of the Treasury Ismael Momoniat berated life assurers, saying that to collect premiums “without checking that clients qualified for their products” they do not treat customers fairly or in good faith. Momoniat told Money on Tuesday afternoon, mere hours before Momentum’s capitulation, that he would refer the matter to the Financial Sector Conduct Authority to investigate. The new market conduct regulator set up under the “Twin Peaks” model was created to especially deal with “poor market practices in the financial sector”. However, Jeanette Marais, CEO of Momentum Investments and deputy CEO of MMI Holdings, told Money that she had been in contact with the regulator over the matter and was not aware of any investigation. Momoniat argued that “to rej...
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