The Financial Sector Conduct Authority (FSCA) has imposed a R4.4 million administrative penalty on Hernell Funerals (Pty) Ltd, along with its directors, Mr Shaun Andre Peterson and Mrs Carol-Ann Peterson, for offering unauthorised financial services.
Additionally, Mr Peterson was debarred for five years, while Mrs Peterson faces a 10-year ban from the industry.
The FSCA’s investigation revealed that Hernell Funerals and the Petersons violated Section 7(1)(a) of the FAIS Act and Section 5(1) of the Insurance Act by selling funeral cover policies without the required licenses.
“Hernell Funerals and its directors illegally provided financial services, including life insurance, without being registered as a financial services provider or a long-term insurer,” the FSCA stated.
As a result, the Petersons are now prohibited from:
- Providing or participating in financial services,
- Acting as key personnel in financial institutions,
- Offering outsourced financial services.
The FSCA urged the public to verify financial service providers by:
- Confirming FSCA authorisation,
- Checking advice categories,
- Matching FSP numbers to the FSCA database.
“Consumers must ensure they deal with authorised providers to avoid risks,” the FSCA warned, directing verification via:
- Toll-free line: 0800 110 443,
- Online searches: FSCA Regulated Entities or FAIS Act Authorised FSPs.
