Financial Services Board - Fidentia Curatorship
CURATORSHIP OF FINANCIAL SERVICES BUSINESS OF FIDENTIA ASSET MANAGEMENT (PTY) LTD AND ASSOCIATED COMPANIES
With reference to the media statements and interviews by Mr J Arthur W. Brown, the Financial Services Board reiterates that based on the information in its possession, which mainly emanated from an extensive inspection into the affairs of Fidentia's licensed investment management company, there was every justification for the FSB to have applied to court for a provisional order placing Fidentia's financial services business into curatorship. The underlying facts were fully dealt with in the application to court. In doing so the FSB was motivated solely by the interests of persons and institutions whose money had been invested in Fidentias business.
A curatorship order is pronounced by the High Court only on good cause shown. Having regard to the seriousness of the information received, the responsibility imposed on the regulator by law convinced the Registrar of Financial Services Providers to place the facts in his possession before the court. These included Fidentia's response to the inspection report. No less than four meetings with Fidentia's legal representatives preceded the application to court. Finally, the Registrar's court papers were served on Fidentia prior to the hearing of the matter, and Fidentia in turn filed papers as to why a curatorship order should not be granted as prayed for by the Registrar.
Having heard the parties on both sides the Cape High Court issued a provisional order and appointed two curators to manage and control the business until 27 March 2007. On that date the curators will report to the Court and once again it will be for the Court to decide what further steps should be taken regarding the Fidentia financial services business. Fidentia will be entitled to be heard on 27 March 2007, and so also the Registrar.
In the interim the curators should be allowed to complete their onerous task independently. The FSB is certainly not interfering with them.
