The Financial Sector Conduct Authority (FSCA) has imposed an administrative penalty of R1 500 000 on Mr Ian Roscoe (Mr Roscoe) and debarred him for a period of 20 years.
The FSCA stated that the regulatory action follows an investigation by the Authority in respect of Mr Roscoe. The FSCA confirmed that the investigation found that Mr Roscoe rendered intermediary services that resulted in his clients investing in the BHI Trust investment, which was run by Mr Craig Warriner (Mr Warriner).
According to the FSCA, the BHI Trust and Mr Warriner were previously found to have contravened section 7(1) of the Financial Advisory and Intermediary Services Act, No. 37 of 2002 (FAIS Act) when they acted as discretionary financial services providers (FSPs) in that they exercised discretion in buying and selling securities on behalf of numerous clients. The FSCA noted that Mr Warriner was debarred for a period of 30 years and convicted to imprisonment for a period of 25 years for charges which included contravening section 7(1) of the FAIS Act.
The FSCA emphasised that at the time that Mr Roscoe rendered the intermediary services, he was not authorised as an FSP. Therefore, the FSCA concluded, Mr Roscoe contravened section 7(1) of the FAIS Act.
The FSCA reaffirmed its commitment to holding individuals accountable for operating outside the regulatory framework, particularly when such conduct exposes clients to substantial financial risk.
