The Citizen (Gauteng)

Discovery Life clients exposed

HIGH COURT: APPLICATIO­N AGAINST AN EX-EMPLOYEE

- Ingé Lamprecht

About 1 000 names, ID numbers and e-contact details published in papers are now being sealed.

About 1 000 names, ID numbers and e-contact details published in papers now being sealed.

Discovery Life has disclosed personal informatio­n of about roughly 1 000 clients in documents it lodged as part of a high court applicatio­n against a former broker.

Broker Devan de Meyer resigned to join MedBond.

Concerned that he’d contact clients to lure them away, Discovery Life filed an urgent applicatio­n in the High Court in Johannesbu­rg on September 10 to prohibit De Meyer from “contacting, enticing or soliciting away” any clients named in five annexures. The annexures list the clients’ names, identity numbers and e-contact details, and effectivel­y put the informatio­n in the public domain.

The court refused to entertain Discovery Life’s applicatio­n.

Court documents show De Meyer resigned under the apparent impression that the client book he previously serviced would be transferre­d to him at MedBond, as was ostensibly the case with some other brokers.

Discovery denies that De Meyer had any basis to assume he was entitled to do so.

Discovery asked the court to protect it from “unlawful interferen­ce” by De Meyer, drawing attention to his employment contract, which requires him to return all its assets upon resignatio­n, which it says De Meyer ignored.

In his answering affidavit, De Meyer denies ever giving Discovery cause to believe he intended to breach his employment contract’s terms. It’s unclear why Discovery deemed it necessary to divulge these clients’ personal details in such detail.

Responding to questions, Discovery denied wrongdoing.

It told Moneyweb it detected that De Meyer unlawfully took confidenti­al client details without its consent, shared them with an unauthoris­ed third party, and has refused to return the informatio­n despite various requests.

“For this reason alone, we initiated urgent legal proceeding­s to protect the informatio­n he had stolen. Discovery applied to the High Court in Johannesbu­rg to interdict Mr Meyer [sic] from using any of this informatio­n and to ensure its return. Discovery is taking all reasonable and necessary steps to have this informatio­n returned and to prevent its misuse in respect of the employment contract with Mr Meyer, which is designed specifical­ly for the protection of our clients.

De Meyer disputes this in court documents.

Discovery contends the Protection of Personal Informatio­n Act caters specifical­ly for circumstan­ces like this and provides an exemption for disclosure to the court to demonstrat­e breach.

It says its submission contained no medical details, policy informatio­n or investment details which it believes the advisor has. Discovery’s actions in this instance were “solely” to protect client informatio­n.

As an additional precaution Discovery has asked the judge to seal the court papers, which it is in the process of doing.

The insurer says it has phoned all affected clients.

Discovery says it goes to significan­t lengths to ensure any informatio­n, from clients or third parties, is stored in a secure manner and constantly protected from unauthoris­ed access.

Attorney Trudie Broekmann says clients whose informatio­n was disclosed can complain to the Informatio­n Regulator, the Ombudsman for Long-term Insurance or the FAIS Ombud.

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