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Pretoria - The Financial Services Board has ruled on two matters forwarded by the registrar of short-term insurance and the registrar of collective investment schemes.
The insurance matter concerns Airborne Insurance Consultants.
The referral relates to a contravention of the Short-term Insurance Act, where Airborne rendered intermediary services to four policyholders while:
* The insurer was not a registered short-term insurer under the act in terms of the short-term policies concerned;
* Lloyd’s underwriters were not the underwriters in terms of the short-term policies concerned; and
* The insurer conducted business without the approval of the registrar as required in terms of the act.
The report said the registrar had considered the mitigating factors; in particular that Airborne’s contraventions were not mala fide but negligent in that it failed to ensure that its internal controls functioned properly.
The registrar agreed to a penalty of R100 000 imposed by the Enforcement Committee in settlement of the matter.
In the other matter, the registrar referred a matter against Indequity Investments Managers.
The referral relates to a contravention of the Collective Investment Schemes Act, in that Indequity changed its registered name without the prior approval of the registrar in writing and that it changed its shareholding without the prior approval of the registrar in writing.
In contravention to the act, Indequity also appointed an auditor and failed to apply to the registrar for approval of such appointment within 30 days from the date of appointment; as well as failed to appoint a minimum of four directors as members of the board, 50% of which is required to be non-executive directors.
The registrar considered the mitigating factors, which included that no loss was suffered by investors as a result of the contravention and that Indequity fully cooperated.
Indequity was fined a total of R72 000.
The insurance matter concerns Airborne Insurance Consultants.
The referral relates to a contravention of the Short-term Insurance Act, where Airborne rendered intermediary services to four policyholders while:
* The insurer was not a registered short-term insurer under the act in terms of the short-term policies concerned;
* Lloyd’s underwriters were not the underwriters in terms of the short-term policies concerned; and
* The insurer conducted business without the approval of the registrar as required in terms of the act.
The report said the registrar had considered the mitigating factors; in particular that Airborne’s contraventions were not mala fide but negligent in that it failed to ensure that its internal controls functioned properly.
The registrar agreed to a penalty of R100 000 imposed by the Enforcement Committee in settlement of the matter.
In the other matter, the registrar referred a matter against Indequity Investments Managers.
The referral relates to a contravention of the Collective Investment Schemes Act, in that Indequity changed its registered name without the prior approval of the registrar in writing and that it changed its shareholding without the prior approval of the registrar in writing.
In contravention to the act, Indequity also appointed an auditor and failed to apply to the registrar for approval of such appointment within 30 days from the date of appointment; as well as failed to appoint a minimum of four directors as members of the board, 50% of which is required to be non-executive directors.
The registrar considered the mitigating factors, which included that no loss was suffered by investors as a result of the contravention and that Indequity fully cooperated.
Indequity was fined a total of R72 000.
