Novare fined R30 000

INVESTMENT company Novare CIS has been fined R30 000 by the enforcement committee of the Financial Services Board, the predecessor of the Financial Sector Conduct Authority (FSCA), for quoting performance data for a fund for a period prior to the fund being regulated by the Registrar of Collective Investment Schemes.

The FSCA says that from September 2016 to September 2017, the minimum disclosure documents in respect of the Novare Money Market Fund quoted performance data for 2010 to 2015, during which period the fund was managed as a segregated fund.

This was prior to the fund being regulated by the registrar, the FSCA says.

The registrar believed that Novare’s failure to indicate clearly that the data applied to a period prior to the registrar’s approval of the fund had the potential to mislead investors into believing that the fund had a long track record. – Staff Reporter