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Thursday, January 1, 2009
More teeth for the FSB

Due to the success of the Enforcement Committee of capital markets, the Financial Services Board (FSB) has extended the Committee to include other laws that the FSB regulates.

The FSB appointed its Enforcement Committee members on 5th December 2008. The Committee was created when the Financial Services Laws General Amendment Act of 2008 came into operation on 1st November 2008.
The mandate of the Committee is to consider contraventions and non-compliance with any FSB legislation and, in appropriate cases, to impose unlimited (but specified) financial penalties, compensation orders and cost orders.
According to Dube Tshidi, the Executive Officer of the FSB, this is a major step forward in augmenting the enforcement capacity of the FSB. Effective enforcement of FSB legislation is viewed as an important success factor in the Board’s strategic plan. The major advantage of the Enforcement Committee is that matters can be dealt with much more efficiently than through a court of law.
The predecessor of the Enforcement Committee, the Capital Markets Enforcement Committee, has been in existence since 2005, and dealt with market abuse contraventions. In the 3½ years of its existence, the Capital Markets Enforcement Committee imposed penalties in excess of R8 million on 21 respondents.
The Chairperson of the FSB Enforcement Committee is Judge Frikkie Eloff, the retired Judge-President of the Transvaal. Deputy chairpersons and members of the Enforcement Committee were appointed for their legal knowledge or their expertise relating to the industries supervised by the FSB.

Copyright © Insurance Times and Investments® Vol:22.1 1st January, 2009
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