Nobody is allowed to offer financial services and insurance if they are not registered to do so and have FSCA authorisation.
The FSCA has fined moving firm Kings International Removers more than R1.1 million for offering insurance on clients’ possession for moves without being registered as a financial service provider that can sell insurance.
The Financial Sector Conduct Authority (FSCA) imposed an administrative penalty of R1 126 982 on Kings International Removers and its owner and CEO, Rolf Michael Lamers. The FSCA also debarred Lamers for eight years following an investigation into a complaint it received from a client of Kings International Removers.
According to the FSCA its investigation found that Kings International Removers and Lamers breached sections 7(1) and 8(9)(c) of the Financial Advisory and Intermediary Services Act, as well as sections 7(1) and 8(2)(d) of the Short-term Insurance Act and section 5(1) of the Insurance Act by rendering financial services without being authorised as a financial services provider and issuing short-term non-life insurance policies to members of the public without being licensed as an insurer.
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Owner and CEO of moving firm debarred for 8 years
The FSCA says Lamers is accordingly prohibited from:
- providing or being involved in the provision of financial services,
- acting as a key person in a financial institution and
- providing specified financial services to a financial institution, whether under outsourcing arrangements or otherwise.
According to Kings International Removers, the company has “almost 100 years’ experience in the industry and specialises in international removals to relocate families overseas.
In addition, Kings International Removers states on its website that it offers “Total Loss” and ” all risks” insurance coverage, but there is no indication of who underwrites this insurance.
The Total Loss cover is limited to a “disaster,” such as a ship sinking and the entire shipment being lost.
All Risks cover insurance for damages to individual items during transit, including negligence.
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How to check if someone or a firm is authorised by the FSCA
The FSCA says consumers should always verify:
- That an entity or individual is authorised by the FSCA to provide financial products and/or services.
- The category of license the entity or individual is authorised to provide financial services.
- The FSP number the entity or individual offering financial services uses must match the FSP’s name on the FSCA database.
Consumers can confirm the status and FSP number of a service provider or someone who claims to be an authorised service provider by calling the FSCA’s toll-free number, 0800 110 443.
You can also do an online search for authorised financial institutions by license category at https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-EntitiesPersons.aspx.
You can also search online for a financial institution that is an authorised FSP under the FAIS Act at https://www.fsca.co.za/Fais/Search_FSP.htm.
