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Ovation Global Investment placed under curatorship

04 March 2007 Financial Services Board - Russel Michaels

The Cape High Court today granted a provisional order whereby the business of Ovation Global Investment Services (Pty) Ltd and Ovation Global Investment Nominees (Pty) Ltd was placed under curatorship in terms of section 5 of the Financial Institutions (Protection of Funds) Act, 2001.

An attorney, Mr John Levin, and a forensic accountant, Mr Barend Petersen, were appointed joint curators to the business of the said companies.

The return date of the provisional order is 15 May 2007 when interested parties may be heard and a report by the curators will be considered by the Court.

The order was granted following an application by the Executive Officer of the Financial Services Board in his capacity as the Registrar of Financial Services Providers (Registrar).

FSB spokesperson Russel Michaels says Ovation Services has been licensed to render non-discretionary administrative services as a linked investment services provider (a so-called LISP). It has also been approved to administer pension funds. "In court papers it was stated that the Ovation companies are closely associated in business with Common Cents Investment Portfolio Strategists (Pty) Ltd and Fidentia Asset Management (Pty) Ltd and that the curatorship of these companies has seriously affected the business of Ovation.

"In terms of the provisional order the curators will take immediate control of, manage and investigate the business and operations of the companies with a view to conserving the business and they may not alienate or dispose of any of the property of the companies. In exercising their powers the curators have been directed to give consideration to the best interests of investors in the companies.

"The order expressly provides that investments in or administered by Ovation may not, without the prior approval of the Registrar, be withdrawn, transferred or otherwise disinvested. However, the curators have been given the discretion, subject to available resources, to maintain payments to annuitants, pensioners and other beneficiaries who receive regular payments from their investments.

"Although thorough investigations into the affairs of Ovation are yet to be completed, the Registrar has been assured by current management that the 15 000 clients whose R4,4 billion rand is administered by Ovation are unlikely to suffer substantial losses on their investments. These investors are advised to exercise patience and to leave it to the curators to look after their interests.

Members of the public are asked not to address enquiries to the curators as their time will be fully occupied by this assignment. Progress with the curatorship will from time to time be made known through the media."

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