FSB fines Dell Computer (Pty) Limited R100 000 for contravening the FAIS Act
The Registrar of Financial Services Providers (the Registrar) referred a case against Dell Computer (Pty) Limited (the Respondent) to the Enforcement Committee of the Financial Services Board.
The established facts revealed that from 1 November 2015 to 3 June 2016 the Respondent collected insurance premiums in respect of insurance products that covered accidental damage to Dell computer devices sold to customers. The Respondent’s conduct constituted financial services and required that the Respondent be authorised by the Registrar as a financial services provider prior to performing said financial services.
When the Respondent rendered the aforementioned financial services it was not authorised. As a result the Respondent contravened section 7(1) of the Financial Advisory and Intermediary Services Act, 37 of 2002.
As aggravating factors the Registrar considered amongst other factors that the Respondent had been advised to obtain authorization prior to collecting premiums, notwithstanding, the contravention took place over a period of seven months and incidents of rendering unlicensed financial services are prevalent.
In mitigation the Registrar considered the fact that the Respondent accepted responsibility for its actions, cooperated during the enforcement process and that it had settled all claims it received and has rectified its conduct by obtaining the necessary authorization.
Taking all the above into consideration, the parties agreed on an administrative penalty of R100 000 which was imposed by the Enforcement Committee on 14 March 2018.
A copy of the order is available on the FSB website: www.fsb.co.za
The Enforcement Committee is an administrative body that has the authority to impose administrative penalties and cost orders, on offenders who breach legislation administered by the FSB.
Enquiries: Ms Tembisa Marele
Financial Services Board
Email address: Tembisa.Marele@fsb.co.za
Telephone: 012 428 8025