The Financial Sector Conduct Authority (FSCA) said on Wednesday that it has issued Ashburton Fund Managers (Ashburton) with an administrative penalty of R16 million for shortcomings in its administrative compliance responsibilities related to the Financial Intelligence Centre (FIC) Act.
“R10 million of the penalty has already been paid, with the remaining R6 million suspended for three years. The penalty follows an onsite inspection by the FSCA as part of its annual regulator engagement schedule. Ashburton has already commenced a remediation programme to address these shortcomings, and the first key milestones have been met. This programme includes enhancements to Ashburton’s financial crime policies and frameworks, as well as improvements to its client due diligence and screening processes,” the FSCA said.
The FSCA said that it did not find any evidence that Ashburton facilitated any transactions involving terrorist financing or money laundering.
“Ashburton’s clients’ funds and investments are not affected by this in any way. We fully support the FIC Act and believe that a robust regulatory environment is crucial to protect our industry, considering South Africa’s greylisting”, Duzi Ndlovu, Ashburton Investments CEO said.
BUSINESS REPORT