In a significant enforcement action, the Financial Sector Conduct Authority (FSCA) has imposed a R12.6 million administrative penalty and a 15-year industry debarment on a company and its director for running an unlicensed insurance operation and obstructing a regulatory investigation.
The penalty has been levied jointly and severally against The Relocations Group (Pty) Ltd and its director, Mr Kyle Bary Tiltman.
Tiltman has also been debarred for 15 years, effectively banning him from any role in the financial sector.
The investigation was triggered by client complaints and uncovered that South African Relocations (Pty) Ltd and its successor, The Relocations Group, “offered marine insurance policies without the required authorisation.”
The FSCA concluded that “these entities operated as unlicensed insurers and unlawfully issued insurance policies to members of the public.”
Compounding the severity of the initial offence, the regulator found that “Mr Tiltman interfered with the FSCA’s investigation by refusing to cooperate during the investigation.”
This obstruction constituted a breach of the Financial Sector Regulation Act, which prohibits hindering investigations and requires compliance with regulatory requests.
As a result of his conduct, Tiltman is now prohibited for a decade and a half from providing any regulated financial services, acting as a key person in a financial institution, or offering services to such institutions.
This case underscores the FSCA’s strict stance against both unlicensed financial activities and any attempts to impede its regulatory oversight.
The substantial fine and lengthy debarment highlight the serious consequences for entities that operate outside the legal framework and fail to cooperate with authorities.
