ASISA S-Referenced three advisers during February

06 April 2009 ASISA

During February this year, three financial advisers were S-Referenced by the Association for Savings and Investment South Africa (ASISA) for submitting unauthorised policies (policies written without a client’s consent) as well as for failing to render financial services honestly and fairly, and with due skill, care and diligence.

The S-Reference system is one of self-regulation and aims to protect consumers from advisers who are considered unfit to be marketing the products of the long-term insurance industry.

Participants in the S-Reference system will not employ, accept new business from, or pay commission to an S-Referenced financial adviser. An S-Referenced person may also not be employed in a position that allows them control over advisers or their training.

An S-Reference is imposed upon an adviser for five years. This may be reduced to three years if there are special mitigating factors. After the expiry of the period, the S-Reference will lapse.

Results of an S-Reference Hearing held during February 2009

The following intermediaries were S-Referenced for five years:

  1. Mr. H. Sotshononda of Haven Hills, Eastern Cape
    ID no: 5910135889082 – submitted unauthorised policies
  2. Mr. T.L. Singo of Emdo Park, Polokwane
    ID no: 7211106056084 – submitted unauthorised policies
  3. Mr. H.P. Makgotla of Diepkloof, Gauteng
    ID no: 5504105743088 - submitted unauthorised policies as well as for failing to render financial services honestly and fairly, and with due skill, care and diligence
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