A Western Cape High Court judge has ruled that Deon Smit, a former Nedbank financial adviser, must hand over and delete confidential client information. The court found that Smit used the bank's information to approach clients and solicit their business. The order also bars Smit from suggesting he still works for, represents or is affiliated with Nedbank.
According to the judgment, Smit worked as a financial planner and consultant at Nedbank from February 2009 until his dismissal for dishonest conduct on December 1, 2022. He later worked at Warwick Wealth before being debarred for similar conduct involving the alteration of a document after it had been signed by a client.
The Financial Services Tribunal confirmed the debarment on appeal. In July 2024, he returned to work as a representative of Equi Pro Wealth. Nedbank said it soon began receiving complaints from clients who had been approached by Smit. The complaints included allegations that he told clients their investments needed to be reviewed or were performing poorly and encouraged them to withdraw their money from Nedbank and reinvest through Equi Pro Wealth.
The court found that Smit had misappropriated personal and confidential information and his conduct threatened clients' privacy and the bank's business interests. It said the public needed protection, including vulnerable and elderly people who could be targeted by his conduct. The case followed complaints from Nedbank clients who alleged Smit contacted them by telephone, email, WhatsApp and in person and discussed their investments.
Judge Mangcu-Lockwood handed down the judgment on October 27, ordering Smit to pay Nedbank's legal costs, including the costs of counsel. Smit admitted to contacting Nedbank clients, discussing their investments, sending them emails and seeking mandates. The court found his admissions confirmed breaches of the confidentiality and non-solicitation clauses in his employment contract.
The judgment found the information included clients' names, identification numbers, physical and email addresses, telephone numbers, financial histories and investment preferences. The court said the information was protected by the Protection of Personal Information Act, which seeks to safeguard personal information held by public and private bodies.
Under the order, Smit must also submit an affidavit within 15 days confirming he has returned or deleted the protected information. He has 10 days to return hard copy records and permanently delete protected information from his personal electronic devices, emails, messaging applications and cloud storage accounts.
Key points
- The court found Smit had misappropriated personal and confidential information.
- Smit was ordered to pay Nedbank's legal costs.
- The order does not prevent him from doing business with former Nedbank clients who contact him independently.
