Gerry Anderson, deputy registrar of Finance Services Providers at the FSB has confirmed that Ant Insurance Brokers has been appointed as representative by Intermediary Support Services (FSP 19015), which until recently was its compliance officer, and follows the provisional liquidation of TF Finance.
Anderson confirmed that the matter is still being followed up: “Our understanding is that ANT Insurance Brokers was the part of TF Finance, through which it conducted its insurance business,” says Anderson. “Its main business activity, namely the granting of vehicle finance for the purchase of motor vehicles, and which does not fall under the FSB’s regulatory oversight, was allegedly the cause of its liquidation.”
In the mean time Ant Insurance (the representative) has applied for its own FSP licence.
TF or Ant Finance, one of the bigger players in the commercial vehicle financing business, which was provisionally liquidated in the Cape Town High Court in February. Both businesses (TF Finance and Ant (TF) Insurance are owned by the TF investment trust, of which Henk Vosloo is a key shareholder. Vosloo was at the centre of the provisional liquidation granted to Investec Bank, when it became apparent that TF Finance would not be in a position to repay R26m it owed to the bank.
Joe Kotzé, national manager: Compliance/Financial Planning/Medical
at the Financial Intermediaries Association of Southern Africa (FIA), says that in general the FSB would exercise its discretion in allowing a juristic person to be registered as a representative under another FSP license. He says that the determination on fit and proper requirements are clear in that a representative must comply with all requirements relating to honesty and integrity and financial soundness.
The representatives registered under the juristic representative must also become registered representatives of the licensed FSP under which license they will be rendering financial services. In terms of any impending changes to legislation, these are related to the experience and qualifications requirements for compliance officers, which are in draft form but not yet circulated for comment. Changes to the experience and qualifications requirements for key individuals are also being debated, Kotzé confirmed.
The fact that the key individual has been provisionally sequestrated (in personal capacity) will definitely be a consideration in granting a license or in approval as a key individual, he says.
Kotzé says that the representatives under this juristic person should not be affected in their personal capacity, given they individually meet the F&P requirements, and will be able to be registered as representatives under another license. Keep in mind that the FSP has full responsibility and accountability for the actions of such representatives in complying with the Act.
The above seems the logical approach to the matter but it is sometimes difficult to predict the possible outcome of a decision by the FSB. They will obviously take all relevant matters into account as regards the key individual. If he/she does not comply with the F&P requirements then approval as key individual should not be granted and registration as a representative, in personal capacity, should also not be allowed.
According to one industry participant: “If I were a representative under a juristic person that has been liquidated I would pack my bags and run.”