Nigel Green fined and banned for five years in South Africa 

South Africa's Financial Sector Conduct Authority (FSCA) has fined Brite Advisors South Africa ZAR 10m (£510,000) and deVere Group chief executive Nigel Green ZAR 2.5m (£127,560).

The regulator said in an enforcement action notice on 27 May that Green was a director of Brite Advisors South Africa (Brite) from 2008 until 2015. 

It said in his capacity as director Green "contravened / failed to comply with the following financial sector laws":
4.1. section 2(a) of the FI Act in that he failed to observe utmost good faith and/or to exercise proper care and diligence whilst being a director of Brite;

4.2. by causing and/or permitting the contraventions mentioned in paragraph 2 by deVere SA he was in breach of his duty undersection 2(a) of the FI Act, this impacted section 8(1A)(a) and 8(1A)(c) of the FAIS Act read with sections 8(1)(a), 8(10)(a)(i) and 8A of the FAIS Act and Part II and section 8 of Part VIII of the Determination of Fit and Proper Requirements for Financial Services Providers 2008 in that he was not fit and proper and did not satisfy (or no longer satisfied): i) the personal character qualities of honesty and/or integrity; and/or ii) operational ability requirements contemplated in those provisions, as required by these provisions at the time.

The FSCA imposed an administrative penalty of R 2 500,000 (inclusive of costs) on Green, payable within 30 days of the date of the order, and to "debar [him] for a period of five years".

It further stated that "Without providing an exhaustive narration of all the factors that the Authority considered in determining an appropriate penalty for the above contraventions, the Authority took into consideration the need to deter the offending conduct, the degree to which Mr Green co-operated, the 3 submissions received, the nature, duration, seriousness and extent of the contraventions, previous contraventions or the lack thereof, any loss or damage suffered, and any financial or commercial benefit derived."

The FSCA also set out in a separate order on the same day (27 May) an enforcement notice finding that Brite Advisors South Africa (Pty) Ltd (Brite) 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:

3.1. section 65(3) of the Collective Investment Schemes Control Act 45 of 2002;

3.2. condition 6 of its licensing conditions imposed in terms of section 8(4) of the Financial Advisory and Intermediary Services Act, No. 37 of 2002 ("FAIS Act");

3.3. regulation 3(a) of the Financial Advisory and Intermediary Services Regulations Published under Government Notice 879 in Government Gazette 25092 of 13 June 2003; and 2 3.4. sections 2, 3A(1)(b)(ii), 3(1)(a)(vii), 3(1)(b), 7(1)(c)(iii)(bb), 9(1)(a)-(d)and 21 of the General Code of Conduct for Authorised Financial Services Providers and Representatives.

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 -

a. The Authority hereby imposes an administrative penalty of R10 million (inclusive of costs) on Brite;

It further stated: "Without providing an exhaustive narration of all the factors that the Authority considered in determining an appropriate penalty for the above contraventions, the Authority took into consideration the need to deter the offending conduct, the degree to which Brite co-operated, the submissions received, the nature, duration, seriousness and extent of the contraventions, previous contraventions or the lack thereof, any loss or damage suffered, and any financial or commercial benefit derived."

A spokesperson for deVere Group told International Investment: "We are shocked and disappointed by the South African regulator's decision.

"It appears that, unfortunately, the regulator has chosen to ignore obvious, unambiguous and crucial facts relevant to this case.  

"We will be appealing this decision and are confident that the Financial Services Tribunal will recognize the abundance of evidence in support of Mr Green's position."