FSCA fines Brite Advisors, withdraws its FSP licence

Administrative penalties against the group and a former director total R12.5m.
An investigation by the FSCA has revealed that Brite - formerly known as deVere Investments South Africa and deVere SA Acuma - contravened various financial sector laws between 2010 and 2015. Image: Moneyweb

Brite Advisors South Africa (Pty) has lost its Financial Service Provider (FSP) licence and has been fined for flouting industry laws, the Financial Sector Conduct Authority (FSCA) confirmed on Monday.

The financial watchdog has come down hard on the group, handing out administrative penalties totalling R12.5 million against Brite and a former director of the group, Nigel James Green.

Read: Dissatisfied deVere customer arrested in Harare for ‘cyber-bullying’

“[An] investigation revealed that Brite which was formerly known as deVere Investments South Africa [Pty] Limited, and deVere SA Acuma [Pty] Ltd, during the period 22 February 2010 to 1 August 2015, contravened various financial sector laws,” the FSCA said in a statement.

“The FSCA has imposed administrative penalties of R10 million on Brite Advisors South Africa [FSP No 23719]… and R2.5 million on Mr Nigel James Green.”

“The FSCA, after having considered representations from Brite, decided to impose an administrative penalty of R10 million in terms of section 167(1)(a) of the Financial Sector Regulation Act No.9 of 2017 [the FSR Act] alternatively, section 6A of the Financial Institutions [Protection of Funds] Act, No. 28 of 2001 [FI Act] and withdraws Brite’s FSP licence, under FSP No. 23719 [Category I and II] in terms of section 9(1) of the Financial Advisory and Intermediary Services Act No. 37 of 2002 [the FAIS Act],” the watchdog explained.

Read:
FSCA fines Carrick CEO for deVere shortcomings
Questions raised about deVere South Africa sale
deVere marketed unapproved offshore funds to SA investors

“The investigation also revealed that Mr Green was a director of Brite from 2008 until 2015 and in his capacity as a director, he caused and/or permitted the contraventions by Brite…

“This resulted in the FSCA finding that Mr Green contravened/failed to comply with various financial sector laws which impacts on his fitness and propriety,” added the authority.

“The FSCA, after having considered representations from Mr Green, decided to impose an administrative penalty of R2.5 million on Mr Green, in terms of section 167(1) of the FSR Act, alternatively, section 6A of the FI Act,” it noted.

The financial watchdog said that it had decided to “debar Mr Green for a period of 5 years in terms of section 153 of the FSR Act from rendering financial services, alternatively in terms of section 14A(1) of the Fais Act.”

Read: Fais Ombud concerned about high rejection rate of homeowners’ insurance claims

Brite is yet to comment on the FSCA pronouncement.

COMMENTS   2

Sort by:
  • Oldest first
  • Newest first
  • Top voted

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

If the FSCA was the regulatory body that oversaw parliament, South Africa would have been in a different economic situation today. Luthuli House would have its license revoked and the Top 6 would have been debarred 10 ears ago.

We have this farcical situation in South Africa where unscrupulous criminals without any “fit-and-proper” credentials rule over highly regulated industries. We have the biggest criminals ruling over honest citizens.

I have no idea what this guy has done? The FSCA is first when it come to poor reporting, yet they ask for documents to be in an understandable format. Section such part so of paragraph whatever…

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us: