FSB WARNS AGAINS CONDUCTING BUSINESS WITH MITPO

THE Financial Services Board (FSB) warns people not to conduct any business with Mitpo Building Society, an unregistered entity selling funeral policies in Mahikeng, North West.

Mitpo, which is owned by Mr Thato Podile, sold funeral policies while not underwritten by a registered long-term insurer as required by law.

The entity is also neither a registered long-term insurer nor a licensed financial services provider in terms of the law and is therefore conducting an unregistered insurance business. Consequently, policyholders are not protected.

The FSB has on several occasions requested Mitpo to provide proof of underwriting, but to date the entity and its owner have failed to provide the requested proof.

Enquiries regarding Mitpo should be directed to the following number at the FSB: 012 422 2945.

The FSB again reminds consumers who wish to conduct financial services transactions with any institution or person to check beforehand with the FSB on either the toll-free number (0800 110 443) or the website www.fsb.co.za whether such an institution or person is authorised to render financial services.

The FSB investigates and takes action against entities which sell funeral insurance policies to the public while such policies are not underwritten.

Such conduct amounts to running an unregistered insurance business and is therefore in breach of the provisions of the Long-term Insurance Act 52 of 1998, and may be subject to a fine or imprisonment upon conviction.