Adviser fined for deviating from licence

A financial adviser has been fined R10 000 by the enforcement committee of the Financial Services Board (FSB) for rendering services to clients that he was not authorised to provide.

The Registrar of Financial Services Providers referred David Melvill to the enforcement committee when it was found that he had contravened section 7(1) of the Financial Advisory and Intermediary Services (FAIS) Act.

The registrar established that in November 2014, Mellvill rendered financial services to two clients in respect of their investments in shares, something he was not authorised to do in terms of his financial services provider licence.

In arriving at an appropriate penalty, the registrar took into account, among other things, that Mellvill admitted his wrongdoing, gave his full co-operation, and had never previously contravened the FAIS Act. A penalty of R10 000 was agreed on and imposed by the enforcement committee.