FSB acts against qual­i­fi­ca­tion, exam fraud

Weekend Argus (Saturday Edition) - - FRONT PAGE - STAFF RE­PORTER

THE fi­nan­cial ser­vices in­dus­try has seen an in­crease in the num­ber of de­bar­ment cases over the past year. The main rea­son for this is that qual­i­fi­ca­tion and ex­am­i­na­tion fraud was dis­cov­ered by the Fi­nan­cial Plan­ning In­sti­tute of South­ern Africa (FPI), which has re­quired the Fi­nan­cial Ser­vices Board (FSB) to take ac­tion against a large num­ber of in­di­vid­u­als.

The FSB re­ports that the fraud case found that FPI em­ploy­ees and a num­ber of can­di­dates were in­volved in a dis­hon­est scheme that re­sulted in the fal­si­fi­ca­tion of their ex­am­i­na­tion and/or qual­i­fi­ca­tion re­sults and the is­su­ing of fraud­u­lent cer­tifi­cates.

An ini­tial in­ves­ti­ga­tion was con­ducted by the FPI, and crim­i­nal charges were laid against the im­pli­cated FPI em­ploy­ees.

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. De­bar­ment ac­tion com­menced in 2015 and is on­go­ing, with at least 60 cases still un­der way.

The FSB also con­ducted an au­dit of the FPI ex­am­i­na­tion body’s in­ter­nal se­cu­rity measures, sys­tems and pro­cesses. Fol­low­ing the au­dit, the FSB rec­om­mended ad­di­tional se­cu­rity pro­to­cols to en­sure that a sim­i­lar sit­u­a­tion does not arise in the fu­ture – rec­om­men­da­tions that the FPI has adopted and im­ple­mented.

The FSB says it con­tin­ues to work closely with the recog­nised ex­am­i­na­tion bod­ies, to en­sure that all se­cu­rity measures are fully func­tional at all times.

The FSB re­gards the reg­u­la­tory ex­am­i­na­tions and the au­then­tic­ity of qual­i­fi­ca­tions as a crit­i­cal com­po­nent of the com­pe­tency re­quire­ments for fi­nan­cial ser­vices providers, and as such “the in­tegrity of the ex­am­i­na­tions and qual­i­fi­ca­tions must be pro­tected at all times”, it says.


Fol­low­ing the rec­om­men­da­tion of the statu­tory man­ager of the Boph­elo Ben­e­fi­ciary Fund and Boph­elo Ben­e­fit Ser­vices, the Reg­is­trar of Pen­sion Funds has ap­pointed a cu­ra­tor for the two en­ti­ties, ac­cord­ing to a me­dia re­lease this week by the FSB.

Juanito Da­mons is a re­spected and ex­pe­ri­enced lawyer, and is well placed to per­form this func­tion, the FSB says.

It added that, in tak­ing this step, the reg­is­trar’s top pri­or­ity re­mains that of pro­tect­ing the clients and ben­e­fi­cia­ries of the Boph­elo Ben­e­fi­ciary Fund.

Af­ter notic­ing con­cern­ing be­hav­iour and not­ing sev­eral me­dia al­le­ga­tions against the Boph­elo Ben­e­fi­ciary Fund and Boph­elo Ben­e­fit Ser­vices, the reg­is­trar ap­pointed a statu­tory man­ager, Henry Msi­mang, to in­ves­ti­gate the two en­ti­ties.

Msi­mang stepped down af­ter sub­mit­ting his re­port to the FSB.

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