Brite Advisors South Africa (Pty) has lost its Financial Service Provider (FSP) licence and has been fined for flouting industry laws, the Financial Sector Conduct Authority (FSCA) confirmed on Monday.

The financial watchdog has come down hard on the group, handing out administrative penalties totalling R12.5 million against Brite and a former director of the group, Nigel James Green.

“[An] investigation revealed that Brite which was formerly known as deVere Investments South Africa [Pty] Limited, and deVere SA Acuma [Pty] Ltd, during the period 22 February 2010 to 1 August 2015, contravened various financial sector laws,” the FSCA said in a statement.

“The FSCA, after having considered representations from Brite, decided to impose an administrative penalty of R10 million in terms of section 167(1)(a) of the Financial Sector Regulation Act No.9 of 2017 [the FSR Act] alternatively, section 6A of the Financial Institutions [Protection of Funds] Act, No. 28 of 2001 [FI Act] and withdraws Brite’s FSP licence, under FSP No. 23719 [Category I and II] in terms of section 9(1) of the Financial Advisory and Intermediary Services Act No. 37 of 2002 [the FAIS Act],” the watchdog explained.

“The investigation also revealed that Mr Green was a director of Brite from 2008 until 2015 and in his capacity as a director, he caused and/or permitted the contraventions by Brite…

“This resulted in the FSCA finding that Mr Green contravened/failed to comply with various financial sector laws which impacts on his fitness and propriety,” added the authority.

“The FSCA, after having considered representations from Mr Green, decided to impose an administrative penalty of R2.5 million on Mr Green, in terms of section 167(1) of the FSR Act, alternatively, section 6A of the FI Act,” it noted.

The financial watchdog said that it had decided to “debar Mr Green for a period of 5 years in terms of section 153 of the FSR Act from rendering financial services, alternatively in terms of section 14A(1) of the Fais Act.”

Brite is yet to comment on the FSCA pronouncement.