Sanlam firms fined over com­mis­sions

Weekend Argus (Saturday Edition) - - PERSONALFINANCE -

Two Sanlam sub­sidiaries, Sanlam De­vel­op­ing Mar­kets and Chan­nel Life, have been fined a to­tal of R3 mil­lion for pay­ing com­mis­sions to prod­uct sales peo­ple in ex­cess of that al­lowed by reg­u­la­tion.

In a me­dia state­ment, the Fi­nan­cial Ser­vices Board (FSB) says the over­pay­ment to in­ter­me­di­aries took place from Novem­ber 2008 un­til June 21 this year. It says the over­pay­ment was due to a “sys­tem de­sign er­ror”.

The mat­ter was re­ferred to the FSB En­force­ment Com­mit­tee, which handed down the fine.

As mit­i­gat­ing cir­cum­stances, the Regis­trar of Long-term Insurance con­sid­ered that Sanlam De­vel­op­ing Mar­kets, which was fined R2 mil­lion, and Chan­nel Life, which was fined R1 mil­lion, fully co­op­er­ated with the in­ves­ti­ga­tion and have put mea­sures in place to rec­tify the con­tra­ven­tion by ad­dress­ing all the com­pli­ance is­sues re­lat­ing to the mat­ter and amend­ing their pro­cesses where re­quired.

The regis­trar also con­sid­ered the con­tra­ven­tion the re­sult of a bona fide over­sight in the de­sign of the sys­tem, the FSB says. – Bruce Cameron

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