High Court orders the Financial Services Board to reinstate Dynamic Wealth’s licenses
The Financial Services Board (FSB) on 27 September 2010 was interdicted by High Court Judge Honourable M Ismail from implementing their decision to withdraw the licenses of Dynamic Wealth Management (PTY) LTD (FSP No 559) and Dynamic Wealth Stockbrokers (PTY) LTD (FSP No 7652). This means that the licences of the two companies are reinstated. The FSB was ordered:
* to pay all the costs, including the cost of two Counsel;
* to immediately issue a press release stating the reinstatement of the two licenses; and
* prohibiting the FSB from further publishing its decision to withdraw the licenses.
This judgment follows a High Court decision on 21 September 2010 by Acting Judge Honourable H de Vos to reject the FSB’s application to put certain divisions of Dynamic Wealth under curatorship. The FSB was in that instance also ordered to pay the full costs of three Counsel.
Above mentioned judgments means that two separate High Court Judges in two separate cases ruled against the FSB (with full cost orders) and in the favour of Dynamic Wealth.
The judgment of Honourable AJ Ismail stems from the unilateral decision of the Registrar of Financial Services Providers to withdraw the licenses of said companies in terms of section 9 of the Financial Advisory and Intermediary Services (FAIS) Act, No 37 of 2002. However, the two companies applied for an urgent interdict on 16 September 2010 to the Pretoria High Court against the FSB’s decision – which has now been granted. Legally speaking the FSB has been interdicted from implementing the decision to withdraw the licences. The effect is that Dynamic Wealth can do business as usual.
Dynamic Wealth remains committed to its investors – as is evident from our fund performances since April 2009 when the FSB’s full onslaught against Dynamic Wealth began (see attached). Dynamic Wealth is committed to comply with all laws and regulations and to work with the FSB to the benefit of investors. Dynamic Wealth supports a strong and fair regulator. Dynamic Wealth prides itself on its integrity and client driven focus.
