FSB: Enforcement Committee fines Mntungwa Funeral Services

21 September 2010 FSB

The Enforcement Committee of the Financial Services Board, established in terms of section 10(3) of the Financial Services Board Act, No 97 of 1990, considered an allegation of a contravention of section 7(1) of the Long-Term Insurance Act, 52 of 1998 (the Act).

The Registrar of Long-Term Insurance referred Mntungwa Funeral Services (Mntungwa) to the Enforcement Committee, because Mntungwa provided funeral cover without an underwriting agreement. Mntungwa is not a registered insurer as contemplated by section 7(1) of the Act.

In determining a penalty, the Registrar and the Enforcement Committee took several mitigating circumstances into account, including that fact that Mntungwa is a small business operation, and prior to the contravention an underwriting agreement existed, no persons other than the respondents suffered financial prejudice as a result of the contravention, and the respondents co-operated fully with the Registrar.

After taking all the factors into consideration, the Enforcement Committee imposed a penalty of R50000.

The full determination can be found on the FSB website, under “Enforcement Committee”.

Note to Editors

The Enforcement Committee is an administrative body that has the authority to impose administrative penalties, cost orders, and compensatory orders on offenders of FSB legislation.

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