The Financial Services Tribunal has dismissed an application by financial adviser T Masiyakoana to reconsider his debarment by Standard Bank Financial Consultancy. Masiyakoana was debarred after admitting to taking money from clients, breaching the Financial Advisory and Intermediary Services (FAIS) Act. The tribunal found that Standard Bank was legally obliged to debar him after establishing that he no longer met the fit-and-proper requirements applicable to representatives in the financial services industry.
Masiyakoana joined Standard Bank Financial Consultancy as a Financial Services Representative in September 2022. An investigation into his conduct was launched, and he was given an opportunity to make written submissions explaining why he should not be debarred. However, after considering his submissions, Standard Bank proceeded with his debarment on June 29, 2026. Masiyakoana then approached the Financial Services Tribunal seeking reconsideration of the decision under the Financial Sector Regulation Act.
In his response to the notice of intention to debar, Masiyakoana did not deny the allegations against him. Instead, he appealed for his circumstances and remorse to be taken into account. He stated that he had hoped that explaining the reasons that led him to commit the misconduct would be considered and that he was willing to repay the money he had taken. Masiyakoana also pointed to his remorse and said he was a first-time offender.
The tribunal noted that Masiyakoana failed to address the admissions he had made in response to the notice of intention to debar. The tribunal considered the fit-and-proper requirements applicable to financial services representatives under the FAIS Act and Board Notice 194 of 2017. These requirements include honesty, integrity, and good standing, which were particularly relevant to Masiyakoana's case.
The tribunal explained that Section 14 of the FAIS Act requires an authorised financial services provider to debar a representative if the person no longer meets the fit-and-proper requirements or has materially contravened or failed to comply with the Act. The debarment process must also be lawful, reasonable, and procedurally fair, including giving the representative adequate notice and a reasonable opportunity to make submissions before a final decision is made.
In Masiyakoana's case, the tribunal found no procedural or substantive fault in Standard Bank's decision. The tribunal found that once Standard Bank established that Masiyakoana no longer met the fit-and-proper requirement or had materially contravened the FAIS Act, it was under a statutory obligation to debar him. The tribunal consequently dismissed Masiyakoana's application for reconsideration.
The decision was handed down by tribunal panel members PJ Veldhuizen and LTC Harms. The Financial Services Tribunal's decision highlights the importance of upholding the fit-and-proper requirements for financial services representatives. Standard Bank's debarment of Masiyakoana was found to be lawful and reasonable, and the tribunal's decision serves as a reminder of the consequences of breaching the FAIS Act.
Key points
- Financial adviser T Masiyakoana was debarred by Standard Bank Financial Consultancy for breaching the FAIS Act.
- The Financial Services Tribunal upheld the debarment, finding that Standard Bank was legally obliged to debar Masiyakoana.
- The tribunal's decision highlights the importance of upholding the fit-and-proper requirements for financial services representatives.
