Media Statement: Outcome of criminal case – State vs Labuschagne
Sanlam welcomes the court ruling against Mr Labuschagne, a former Sanlam financial adviser.
We are serious about the financial well-being of our clients and have high regard for our advisers, their integrity and the professional advice they offer to clients. For this reason, we were dismayed to learn of Mr Labuschagne’s actions and acted as soon as the matter was brought to our attention in 2010.
We worked closely with the relevant law enforcement authorities and our investigation into the matter included offering the affected clients full monetary compensation for their financial losses. The investigation was finalised in December 2010 and we terminated Mr Labuschagne’s contract in the same month (December 2010). Sanlam also lodged an application for the adviser’s debarment with the Financial Services Board (FSB).
By January 2011, we completed our compensation to all affected clients after identifying instances where they were done an injustice.
Though such incidents occur seldom, we immediately engage our Forensics Department wherever a complaint or any other trigger indicates suspicion that one of our clients could have been jeopardised by the actions of an adviser. This Department then conducts a detailed investigation that culminates in a report which is reviewed by an internal panel of experts for decisions with regards to client compensation and sanctions against the perpetrator.