FSCA update on the Resilient REIT Limited investigation

08 November 2019 The Financial Sector Conduct Authority (FSCA)

The Financial Sector Conduct Authority (FSCA) has concluded its market abuse investigation into Resilient REIT Limited (Resilient) and found that the company did not contravene section 81 of the Financial Markets Act 19 of 2012 (FMA).

The FSCA’s investigation stemmed from allegations that Resilient may have published false, misleading or deceptive statements, promises or forecasts when it restated its 2013 – 2017 financial statements. Based on evidence available, the FSCA is satisfied that Resilient’s financial statements needed to be restated, in so far as the consolidation of the Siyakha Trusts is concerned. The Authority has determined that Resilient, its directors, board and audit committee members, did not negligently or intentionally make or publish a false, misleading or deceptive statement and have therefore not contravened section 81 of the FMA. The FSCA has now closed its investigation in this matter.

Another investigation into allegations relating to market participants manipulating the Resilient share price is still ongoing. This investigation is anticipated to be finalised early in 2020. It is important to note that this investigation is not into the affairs of Resilient.

The FSCA is mandated to investigate, and in appropriate instances, take enforcement action in cases of market abuse on the financial markets. Three kinds of market abuse are prohibited in South Africa, namely insider trading, market manipulation (prohibited trading practices) and false reporting relating to the affairs of a public company. Our investigation procedures include interviews under oath, acquiring documentary evidence and obtaining assistance from foreign regulators.

Quick Polls


In terms of vicarious liability, damages should not be borne by companies in all conditions, but only in those circumstances which it is reasonable for them to do so. Do you agree?


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As long as the employee is acting within the course and scope of his or her duty… the employer will be held liable.
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