Regulator issues warning about funeral parlour, burial society

The Financial Sector Conduct Authority issued a warning on Wednesday that the public should not conduct any financial services business with Masibekele Funeral Parlour and MISI Burial Society.

According to the FSCA, which regulates the conduct of financial institutions in South Africa, these entities are allegedly selling and offering funeral policies to members of the public without the necessary authorisation from the regulator, as required in terms of the Financial Advisory and Intermediary Services Act (FAIS Act). They are also not licensed as insurers in terms of the Insurance Act and the Long-term Insurance (LTI) Act and, therefore, are not authorised to underwrite any insurance policies.

FSCA records indicate that Masibekele Funeral Parlour and MISI Burial Society are not authorised financial service providers (FSPs) nor representatives of an authorised FSP and there are no records of an application to become authorised FSPs with the FSCA, the regulator said.

The FSCA advised members of the public to always check that an entity or individual is registered with the FSCA to provide financial advisory and intermediary services and what category of advice it is that the entity is registered to provide.

For example, there are instances where persons are registered to provide basic advisory services for a low-risk product, but then offer services of a far more complex and risky nature, it said.

Members of the public can check credentials with the FSCA on its toll free number (0800 110 443) or on its website www.fsca.co.za.