The Financial Sector Conduct Authority (FSCA) published its latest Regulatory Actions Report for the period 1 April 2023 and 31 March 2024.
The report is a summary of the FSCA’s enforcement actions over the period, as well as the trends and risks that have been identified. The objective of the report is to draw attention to the FSCA’s enforcement actions, discourage wrongdoing, and promote knowledge of the financial sector’s regulatory obligations.
The number and value of the actions by the FSCA has considerably increased from previous years. The report gives insight to the actions taken by the FSCA which includes 156 debarments, 41 enforcement undertakings, 1061 licences suspended, 75 licences withdrawal and penalties imposed on 31 persons, amounting to R943 million.
The FSCA has also collaborated with international counterparts on 45 matters and become a member of the IOSCO’s Enhanced Multilateral Memorandum of Understanding to improve the efficiency of international enforcement and investigations.
Domestically, the FSCA has collaborated with the Prudential Authority, FIC, National Consumer Commission, the NCR and have dealt with 12 cases which were fully investigated and handed to law enforcement for further action. The most successful prosecution was that of Mr. Craig Warriner who received an effective sentence for a period of 25 years for fraud and running an unregistered FSP.
The trends and focus areas of concern identified by the FSCA include but are not limited to lack of oversight by key individuals, investment in livestock, failures to implement a Risk Management and Compliance Programme (RMCP), copy trading, entities operating without approval for Crypto products, unregistered funeral parlors and promotion of financial products through social media which influence the public to invest or purchase (FinFluencers).
The report further goes on to discuss 8 case studies as well as identifying the Consumer awareness programs implemented over the period to assist consumers.