Warning not to deal with Westside Financial Services

The Financial Services Board (FSB) has warned the public against dealing with Westside Financial Services, which is still doing business across South Africa despite having had its financial services provider (FSP) licence withdrawn in March last year.

Meanwhile, the FSB has fined Cucamla Finansiële Dienste for previously having operated without an FSP licence.

The FSB says Westside Financial Services has branches in Kuruman in the Northern Cape; Vryburg, Lichtenburg, Wolmaransstad, Marokolong and Madibogo in North West; KwaMashu in KwaZuluNatal; and Vosloorus in Gauteng.

The FSB says it appears that Westside is providing advisory and intermediary services, as well as selling unregistered life assurance business.

Wesley Kgomo was the key individual, director, 100-percent shareholder and representative of Westside Financial Services.

Westside had its licence rescinded after the FSB found that it was contravening the Financial Advisory and Intermediary Services (FAIS) Act.

The FSB says consumers are not protected by legislation if they purchase financial products from Westside. Anyone who has been approached by Westside should call the FSB on 012 367 7228.

The FSB’s administrative justice body, the Enforcement Committee, fined Cucamla Finansiële Dienste R100 000 for conducting financial services business while not licensed to do so. The sole member of the company is now licensed, but the FSB has not provided the name or place of business of the now registered entity.

The FSB says you should always check, either by telephoning the FSB’s toll-free number (0800 110 443) or by going its website (www.fsb.co.za), that a person who provides you with financial advice or sells you a financial product is licensed in terms of the FAIS Act.

The Enforcement Committee also fined Unitrans Insurance Limited R200 000 for contravening the Short Term Insurance Act by allowing one of its associated companies, Unitrans Automotive, and financial services company International Underwriters and Administrators to collect premiums without authorisation and providing security. – Bruce Cameron