FSB responds to Belvedere scandal, Kellerman risks losing licence - CNBC Africa

FSB responds to Belvedere scandal, Kellerman risks losing licence

Financial

by Trust Matsilele 0

Financial Services Board (FSB) is battling to distance itself from having been lax in handling Jacobus Kellermann’s alleged Ponzi scheme.

Financial Services Board (FSB) is battling to distance itself from having been lax in handling Jacobus Kellermann’s alleged Ponzi scheme.

“There are also media reports suggesting that the FSB was advised of Mr Kellerman’s activities as early as 2009,” said the board.

“The FSB denies this as the information supplied in 2009 made no mention of Mr Kellerman or his involvement in an offshore Ponzi scheme.”

(READ MORE: deVere reveals it provided evidence regarding Belvedere)

The FSB said it has been liaising and helping the authorities with the investigations.

“The FSB has also engaged Mr Kellerman, and will take regulatory action it deems necessary at the conclusion of these investigations,” read FSB’s statement.

“Such regulatory action could include the withdrawal of the licenses of the various entities where he is currently appointed as a key individual, director and representative.”

The FSB added that, in addition to any criminal prosecution, Kellerman could also be debarred from the financial services industry.

Kellerman is currently linked to five authorised financial services providers in various capacities as a key individual, director and representative.

In terms of Clarus CIS funds, the assets of investors are safeguarded by the requirements of Collective Investment Schemes Control Act (Act 45 of 2002), in that the assets are segregated from that of the CIS manager and asset manager and are held and controlled  by the scheme’s trustee which is an entity independent from the manager and asset manager.

(READ MORE: MMI cuts ties with Clarus following Kellerman scandal )

Kellermann's 3.3 billion rand alleged global Ponzi scheme scandal has dominated media reports in the past few days with some investors jittering due to the likelihood of them losing their investments.

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