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Category:
Insurance
News /
Life
Insurance /
Fiancial
Services Board / Feb. 2007
Curatorship of Fidentia Asset
Management (Pty) Ltd and associated companies
There was every justification for the
FSB to have applied to court.
With reference to the media statements
and interviews by Mr J Arthur W. Brown, the Financial Services Board
reiterates that based on the information in its possession, which
mainly emanated from an extensive inspection into the affairs of
Fidentia’s licensed investment management company, there was every
justification for the FSB to have applied to court for a provisional
order placing Fidentia’s financial services business into
curatorship.
The underlying facts were fully dealt
with in the application to court. In doing so the FSB was motivated
solely by the interests of persons and institutions whose money had
been invested in Fidentia’s business.
A curatorship order is pronounced by
the High Court only on good cause shown. Having regard to the
seriousness of the information received, the responsibility imposed
on the regulator by law convinced the Registrar of Financial
Services Providers to place the facts in his possession before the
court.
These included Fidentia’s response to
the inspection report. No less than four meetings with Fidentia’s
legal representatives preceded the application to court. Finally,
the Registrar’s court papers were served on Fidentia prior to the
hearing of the matter, and Fidentia in turn filed papers as to why a
curatorship order should not be granted as prayed for by the
Registrar.
Having heard the parties on both sides
the Cape High Court issued a provisional order and appointed two
curators to manage and control the business until 27 March 2007. On
that date the curators will report to the Court and once again it
will be for the Court to decide what further steps should be taken
regarding the Fidentia financial services business. Fidentia will be
entitled to be heard on 27 March 2007, and so also the Registrar.
In the interim the curators should be
allowed to complete their onerous task independently. The FSB is
certainly not interfering with them.
Contact official at the FSB:
Mr Gerry Anderson
Deputy Registrar: Financial Services Providers
Financial Services Board
Telephone : (012) 428 8114
E-mail:
gerrya@fsb.co.za
Source: ITInews – Insurance
Times and Investments Online
www.itinews.co.za
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