Image
Icon

Directory

IconActuaries
IconAssociations & Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBusiness Chambers
IconBusiness Process Management
IconBusiness Process Outsourcing
IconCall Centre Outsourcing & Sales
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconEducation and Training
IconFAIS
IconHuman Resources
IconInformation Technology and Software Partners
IconLegal
IconLife Insurance Companies
IconLife Insurance Products
IconOmbud
IconOutbound Sales
IconPolicy Administration
IconPolicy Trading
IconPublications
IconRe-insurance Companies
IconRegulatory Authorities
IconSales and Sales Management
IconSocial Grants (Government)
IconSurveys and Research
IconTraining Courses & Workshops
IconWellness Programs
Image
  Subscribe To »

Fais Compliance - Compassion not an alternative to Compliance

Published

2017

Wed

22

Mar

 

The latest ruling by the Appeal Board reaffirms the fact that there really is no alternative, harsh as it may sound.

The appellant appealed against the withdrawal of his licence by the Registrar. This decision was based on no less than ten instances of non-compliance with the provisions of the FAIS Act.

Some of the grounds on which it was withdrawn included:

  • Repeated failure to pay the prescribed levy and interest thereon;
  • Repeated failure to successfully complete the required first level regulatory examination;
  • Failure or inability to maintain suitable guarantee or professional indemnity or fidelity insurance cover (professional indemnity cover);
  • Failure to register with the FIC as accountable institution (FIC registration).

The Appeal Board states:

“The facts are not in dispute, also not that the appellant had been given repeated warnings and extensions to enable him to comply. The appeal is in essence a plea ad misericordiam — an appeal to compassion and pity while the function of this Appeal Board is to determine whether the Registrar was right or wrong.”

“The problem is that the appellant did not appear at the hearing. Although he had previously indicated that he would be represented and that two persons would attend the hearing he sent an email at about 15.00 on the day before the hearing stating that he had fallen ill and that he would send a doctor's note the next day.”

“When the appeal was called there was no appearance, no application for postponement and no doctor's note.”

“Although the Registrar wished to proceed with the appeal in the absence of the appellant we decided that the proper course to adopt is to strike the appeal from the roll because of non- appearance. If the appellant wishes to prosecute the matter he will first have to file a proper application for condonation and reinstatement of the appeal.”

From the use of the word “repeated” in the grounds for the withdrawal of the appellant’s authorization, it is quite apparent that the Registrar showed compassion for appellant’s problems. There has to come a time, though, when the line has to be drawn.

Sadly, this often happens to older folks who have no other means of making a living, which is one of the tragedies resulting from the need for stricter regulation of the industry from 2004 onwards.

It is doubtful whether the Appeal Board would have been able uphold the appeal on compassionate grounds. As indicated above: “…the function of this Appeal Board is to determine whether the Registrar was right or wrong.”

The appeal documents only list four of the ten grounds for the withdrawal of the authorisation. Whilst some, like the repeated failure to pay levies or pass the regulatory exams cannot be blamed on ignorance, matters such as failure to effect PI cover, or to register with the Financial Intelligence Centre may be the result of not knowing about the requirements. Ignorance is, unfortunately, not an acceptable excuse in law.

It also appears from the above that the appellant may well have made use of the facility offered by the Registrar to request for exemptions to pay levies or RE deadlines, but this can only be extended so far.

Nevertheless, and harsh as it may sound, the outcome is inevitable.

There is a lesson to be learnt from this. There is unfortunately no alternative but to comply with legal provisions if you want to stay in the business.

Click here to read the
Judgment on the FSB website.

 
Source: Paul Kruger: Moonstone Compliance (Pty) Ltd
 
« Back to previous page Print this page » |
 

Breaking News »

The Insurance Crime Bureau facilitates bust of another insurance fraud murder syndicate

By The Insurance Crime Bureau     In another Murder for Money case in Pietermaritzburg, we are happy to advise we have seen some really meaning guilty verdicts & sentences. One ...
Read More »

  

Don’t ignore cultural notions, says Long-term Insurance Ombud

          Judge Ron McLaren Ombudsman for Long-Term Insurance                     Cape ...
Read More »

  

Large natural catastrophe losses in 2017 and current low prices likely to lead to improved pricing in non-life re/insurance

Major natural catastrophe events in 2017 and current low prices are expected to push pricing in non-life insurance and reinsurance higher Cyclical upswing in global economy set to continue in 2018 and 2019, supporting ...
Read More »

  

The underwriting disrupters – changing the face of the life insurance industry

By Francois Schaap, Managing Director, Guardrisk Life and Ryno Van den Berg, Managing Executive, Guardrisk: Volume   Over the last few years, the words “disruption” and “disrupters” ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Retirement »

Image

Short-term »

Advertise Here
Image
Image
Image
Image
Advertise Here

From The Glossary »

Icon

Commercial Insurance:

An insurance contract entered into in respect of the assets and liabilities of business enterprises as opposed to individuals. Also referred to as corporate insurance.
More Definitions »

 
 
By using this website you agree to the Terms of Use.
Copyright © Stoker Risk & ICT (Pty) Ltd 2004 - 2017.
All Rights Reserved.
Icon

Advertise

  Icon

eZine

  Icon

Contact IG

Icon

Media Pack

  Icon

RSS Feeds