By FSCA

FSCA update on inspection into the affairs of financial services providers linked to Jacobus Kellermann.

The Financial Sector Conduct Authority (FSCA) has concluded its inspection into the affairs of various financial services providers connected to Mr Jacobus Kellermann. During 2014, the FSCA’s predecessor, the Financial Services Board (“FSB”), provided assistance to certain foreign regulators relating to funds that were allegedly channeled to several entities in South Africa. It became apparent that Mr. Kellermann was a person of interest in the matter. The FSB’s inspection therefore sought to establish whether Mr Kellermann was involved with any South African Financial Services Providers (FSPs), and whether the funds of any South African clients were invested in the foreign entities that were mentioned in media reports on the matter. The FSB’s inspection established that Mr. Kellermann was or had been involved with the following South African FSPs:

• RSA Multi Asset Management (Pty) Ltd FSP 622 • Governation Investments SA (Pty) Ltd FSP 5735 • Pensionation Investments SA (Pty) Ltd FSP 44104 • Multivest Financial Planning (Pty) Ltd FSP 44887 • Contego Asset Management (Pty) Ltd FSP 788 • Clarus Asset Managers (Pty) Ltd FSP 858

Mr. Kellermann’s involvement with these FSPs took the form of either being the beneficial owner of shares in the providers, or being the key individual and/or director of these FSPs.

The inspection found no evidence of any breaches of the relevant South African financial sector laws. Neither the FSB nor the FSCA has been advised of any regulatory action having been taken against Mr. Kellermann by any foreign regulator.

As part of its mandate to protect financial customers, while supporting the efficiency and integrity of financial markets, the FSCA investigates any and all allegations of financial misconduct and suspected contraventions of financial sector laws that are reported, or it becomes aware of. It also adheres to Memoranda of Understanding concluded with foreign regulators to aid with any investigation or information gathering within South African borders. This is to ensure that FSPs and key individuals authorised by the FSCA always act in the best interests of consumers and that the financial stability of the country is maintained at all times.