FSCA Imposes Administrative Penalties

The Financial Sector Conduct Authority (FSCA) recently fined Mr. Shaheen Khan R4.5 million and barred him from the financial industry for 10 years. The penalty comes after an investigation revealed that Mr. Khan offered intermediary services for foreign currency investment products between July and December 2018 without proper authorization. This act is a violation of South Africa’s Financial Advisory and Intermediary Services (FAIS) Act.

As a result of the ruling, Mr. Khan is prohibited from providing financial services, being involved in financial institutions, or acting as a key person in any financial service provider (FSP).

Key Takeaways

• Always confirm that any financial service provider is authorised by the FSCA. Working with unauthorised individuals can expose you and your clients to significant risks. You can verify the status of a service provider on the FSCA website here.

• Verify the FSP number of financial service providers using the FSCA database to ensure it matches their registration and authorisation level.

• Familiarise yourself with the FAIS Act, especially if your clients are involved in financial services, to ensure compliance with all regulatory requirements.

For further details read the Press Release on the FSCA website.