FSB: New Era Life company placed under curatorship

New Era Life Company Limited (New Era) has been placed under provisional curatorship by the North Gauteng High Court.

The order was granted yesterday following an application by the Executive Officer of the Financial Services Board (FSB). The application follows an investigation into the affairs of New Era by the Registrar of Long-Term Insurance. The investigation revealed serious contraventions of various provisions of the Long-Term Insurance Act, No. 52 of 1998, and other problems in the business of New Era.

A retired insurance executive, Mr Hendrik Augustyn, and a chartered accountant, Ms Octavia Matloa, were appointed joint curators. In terms of the provisional order the curators will take immediate control of, manage and investigate the business and operations of New Era. The purpose is to conserve the business and they may not alienate or dispose of any of the property of the insurer without the approval of the FSB. In exercising their powers, the curators have been directed to consider the best interest of New Era’s policyholders.

The public is requested to allow the curators to do their work, without interruption as progress with the curatorship will be made available from time to time.

The return date of the provisional order is 1 September 2009 when interested parties may be heard and a report by the curators will be considered.