Refinery 5 (Pty) Ltd (Refinery) contravened section 7(1) of the Financial Advisory and Intermediary Services Act, 37 of 2002 in that during the period from February until April 2017 Refinery acted as a financial services provider in respect of shares when it was not permitted to render financial services in respect of this product category.
This highlights the importance of having a process in place to conduct a thorough investigation into any new financial product which an FSP is considering offering to its clients to ensure that the financial product falls within the licence conditions of the FSP.