FSCA issues Ashburton Fund Managers with an administrative penalty
The Financial Sector Conduct Authority (FSCA) has issued Ashburton Fund Managers (Ashburton) with an administrative penalty of R16 million for shortcomings in its administrative compliance responsibilities related to the Financial Intelligence Centre (FIC) Act.
The regulator said R10m of the penalty has already been paid, with the remaining R6m suspended for three years.
“The penalty follows an on-site inspection by the FSCA as part of its annual regulator engagement schedule.
“Ashburton has already commenced a remediation programme to address these shortcomings, and the first key milestones have been met. This programme includes enhancements to Ashburton’s financial crime policies and frameworks, as well as improvements to its client due diligence and screening processes,” it said.
The FSCA said it did not find any evidence that Ashburton facilitated any transactions involving terrorist financing or money laundering.
“Ashburton’s clients’ funds and investments are not affected by this in any way. We fully support the FIC Act and believe that a robust regulatory environment is crucial to protect our industry, considering South Africa’s greylisting,” said Duzi Ndlovu, Ashburton Investments CEO.
Discovery Pothole Patrol formalises its academy to create jobs
Discovery has announced the official launch of the Discovery Pothole Patrol Academy in partnership with Avis Southern Africa.
The group said following a successful pilot in 2023 with 18 learners, the academy is now accredited by the Insurance Sector Education and Training Authority (INSETA) to offer a 12-month practical skills training programme providing an NQF Level 3 qualification.
The academy provides classroom and on-the job-training to 24 learners through EduWize, an accredited learnership and skills development provider.
Participants are men and women aged 22 to 34 from previously disadvantaged communities and will obtain a National Certificate in Roadworks Construction upon completion. The aim of the programme is to equip participants with road construction skills and the confidence to start their own business one day.
Kgodiso Mokonyane, head of strategy and value added and ancillary products at Discovery Insure, said: “It is exciting to see that one of the people who was trained under the Discovery Pothole Patrol has started his own business in KwaZulu-Natal and created employment opportunities through his company.”
FSCA warns public against fraudulent Telegram channel impersonating Old Mutual
The Financial Sector Conduct Authority (FSCA) has warned the public against a fraudulent Telegram channel impersonating the Old Mutual Limited (OML) Group, which has licensed entities such as Old Mutual Life Assurance Company of South Africa Limited, Old Mutual Insure Limited, Old Mutual Investment Group Proprietary Limited, and more.
The FSCA said it received a report of a sophisticated scam operating within a private Telegram channel, accessible only through invitation. The individuals operating the scam are purporting to be representatives of Old Mutual Investment Company (a fictitious and unauthorised entity) and lure unsuspecting members of the public with the promise of lucrative financial products and/or investment opportunities.
“What is of concern is that the Telegram channel is reported to have about 1 402 members. OML has confirmed to the FSCA that it is in no way associated with the private Telegram channel that is offering these investment opportunities to the South African public using its name. OML has published similar cautionary messages on its social media pages,” it said.
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