• wblogo
  • wblogo
  • wblogo

South Africa clamps down on regulatory exam and wealth management qualification fraud

Chris Hamblin, Editor, London, 31 July 2017

articleimage

The Financial Planning Institute of Southern Africa has uncovered much qualification and examination fraud this year, prompting the Financial Services Board to take action against many miscreants.

A fraud case instigated by the FSB found that some FPI employees and a number of candidates for financial planning qualifications were involved in a dishonest scheme that resulted in the falsification of their examination and/or qualification results and the issuance of fraudulent certificates. The FPI conducted the investigation that touched off the whole disciplinary process and the FSB laid criminal charges against the implicated FPI employees, who allegedly received bribes in exchange for false results or undeserved certificates. The FSB was informed of the matter in 2014 and launched an inspection to gather evidence against 120 representatives and 'key individuals' who had allegedly benefited from the fraud. It started debarring representatives in 2015 and still has at least 60 cases in the pipeline.

The FSB also conducted an audit of the FPI Examination Body’s internal security measures, systems and processes. Having done this, it advised the FPI to evolve additional security protocols, which it has done. The FSB continues to work closely with the recognised examination bodies, to ensure that all security measures are fully functional at all times. The FSB sees the regulatory examinations and the authenticity of qualifications as a crucial component of the 'competency' requirements for financial service providers.

Meanwhile, the deputy registrar for financial service providers, Caroline de Silva, has stated that the FSB has finalised the processing of 25,735 (previously 25,639) applications for authorisation as financial service providers between 13 June and 17 July. The FSB has declined 2,258 in total.

Latest Comment and Analysis

Latest News

Award Winners

Most Read

More Stories

Latest Poll