The Financial Sector Conduct Authority (FSCA) has fined Afrikan Financial Services more than R2.5m and warned the public against doing any financial services-related business with the company.

The FSCA says it withdrew Afrikan’s licence on November 22 2019 for contravening section 7(1) of the Financial Advisory and Intermediary Services Act of 2002 (FAIS Act). The company was furnishing advice in respect of deposits and rendering intermediary services in relation to a long-term policy without being duly authorised.

The FSCA says despite Afrikan not being registered or authorised as a short- or long-term insurer, it offered various insurance products to members of the public, thereby contravening insurance legislation.

Afrikan was previously licensed by the FSCA under financial services provider (FSP) number 48238.

In addition to the R2.5m administrative penalty, the FSCA has debarred Mbalenhle Valentia Khuzwayo, the key person at Afrikan, and Buhlebenkosi Mayibongwe Nala, a director at Afrikan, for a period of 10 years from providing or being involved in the provision of financial services. Both Khuzwayo and Nala have agreed to the FSCA’s administrative and regulatory action imposed, the regulator says.

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 authorised to render financial services, and for which product(s).