Registrar refers ACCM matter
The Enforcement Committee is an administrative body that came into operation on 1stNovember 2008, and was created in terms of section 10(3) of the Financial Services Board Act, 1990. It may impose administrative penalties, compensation orders and cost orders on respondents that are found to have contravened any law administered by the Financial Services Board.
The Board said the referral relates to a contravention of Section 65(3) of the Collective Investment Schemes Act, No 45 of 2002 (CISCA) in that ACCM solicited investments in an unregistered foreign collective investment scheme.
"The Registrar considered the mitigating factors," it said, "which included:ACCM did not receive remuneration for the introduction of clients to the fund; No loss was suffered by investors as a result of the contravention; ACCM fully cooperated with the Registrar during the enforcement process; ACCM removed the name of the fund on its business premises and ceased to do presentations on the fund; Only 5 clients entered the fund due to ACCM's presentations, and only an amount of approximately R200,000 was invested."
The Board however pointed out that, consequently, the Registrar agreed to a penalty of of R10,000 and a contribution to the costs of the Registrar in the amount of R114 000 in settlement of the matter, which penalty and costs were imposed by the Enforcement Committee on 9th December 2013.
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