The Registrar said that the referral relates to a contravention of section 2 of the General Code of Conduct for Authorised Financial Services Providers and Representatives, 2003 issued in terms of section 15 of the Financial Advisory and Intermediary Services Act, 37 of 2002. In a statement released today, the Registrar said the allegations were that the Respondent's failed to render financial services honestly, fairly with due skill care and diligence when it allowed its call centre agents to mislead clients to believe that the Respondent would obtain different quotes from a number of insurance companies with a view of comparing said quotes and advancing the best quote to clients.
In truth and in fact, the Respondent was a lead provider and only referred the prospective clients to MiWay Insurance Limited for a quotation and did not obtain quotes from different insurance companies.
The Registrar and the Respondent agreed on a penalty of R250,000. In reaching the agreed penalty the Registrar took several mitigating circumstances into account including the fact that the Respondent has never appeared before the Enforcement Committee and that the Respondent accepted responsibility for its actions and co-operated with the Registrar's office. The order is available on the FSB website at www.fsb.co.za .