Africa-Press – South-Africa. The Financial Services Tribunal has restored the operating licence of Brite Advisors SA and cut an administrative penalty levied against the Cape Town-headquartered investment manager from R10 million to R3.5 million.
Last year, the FCSA fined Brite Advisors SA R10 million and pulled its financial services provider (FSP) license for soliciting South Africans to invest in offshore pension funds without approval.
The investments were promoted between 2010 and 2015 by a company known as deVere Investments SA, which later changed its name to deVere SA Acuma.
Brite Advisors acquired deVere SA Acuma in 2019 and changed its name to Brite Advisors SA.
The ruling ends the dispute between the Financial Sector Conduct Authority (FSCA) and the asset manager, which is part of the global Brite Advisors group.
After it was fined and had its licence axed, Brite Advisors SA complained that its personal and business practices had changed since it was known as deVere SA Acuma. It argued that the people implicated in wrongdoing between 2010 and 2015 had left the company.
The financial penalty and the withdrawal of its PSF Licence were then suspended, pending the outcome of a reconsideration application.
The FCSA already acknowledged last year that the FSP licence should not have been suspended. It also decreased the fine from R10 million to R3.6 million.
“This was mainly because the management team of the entity had been completely replaced and the FSCA is not aware of any transgression of a financial sector law since new management were appointed,” it said in a statement.
The watchdog’s ruling has now been upheld by the Financial Services Tribunal, which also decreased the fine from R3.6 million to R3.5 million.
The tribunal, however, dismissed a bid by Brite to have all of the FSCA’s findings against it set aside.
“Of significance is the fact that this case highlights the importance of the prohibition against South African financial services providers soliciting investments in foreign collective investment schemes that are not approved by the FSCA,” the FSCA said in its statement.
Brite will now need to pay R500 000 on 31 August, R1.5 million on 30 November, and R1.5 million on 28 February 2024.
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