From CompliNEWS | Financial Service Intelligence Watch
Debarment and penalty for Regenesis Markets and Mr Maudi Martin Lentsoane
The Financial Sector Conduct Authority (FSCA) on Monday issued two significant enforcement actions under the Financial Sector Regulation Act 9 of 2017 (FSR Act). These orders highlight the regulatory authority’s commitment to upholding compliance within the financial sector by enforcing strict penalties and debarments for misconduct. Below is an overview of these actions.
Debarment of Mr Maudi Martin Lentsoane
In accordance with section 153(1)(a) and (c), and 153(2) of the FSR Act, Mr Maudi Martin Lentsoane has been debarred by the FSCA. The debarment, issued on 30 October 2024, restricts Mr Lentsoane for twelve years from:
• Providing or being involved in the provision of any financial products or services across all financial sector laws administered by the FSCA.
• Acting as a key person within any financial institution.
• Delivering any financial services to a financial institution, whether under outsourcing arrangements or otherwise.
The FSCA’s decision underscores the consequences of failing to meet the regulatory standards expected of financial sector participants. Such a debarment is intended to protect the integrity of the financial system and prevent individuals with significant regulatory breaches from continuing to operate within the industry.
Joint Administrative Penalty for Regenesis Markets (PTY) Ltd and Mr Maudi Martin Lentsoane
In a related order dated 4 November 2024, the FSCA imposed a joint administrative penalty of R1 million on Regenesis Markets (PTY) Ltd, trading as Lehumo Security (PTY) Ltd, and Mr Maudi Martin Lentsoane. This penalty, inclusive of costs, was issued under section 167(1)(a) of the FSR Act. The FSCA’s enforcement measures in this case reflect the regulatory body’s intent to impose financial consequences for regulatory infractions and associated compliance failures.
Implications for the Industry
These actions serve as a strong reminder to all financial services providers of the FSCA’s robust approach to enforcing compliance with the FSR Act. Companies and individuals operating within the financial sector are urged to adhere to all regulatory requirements diligently to avoid such punitive measures. The FSCA’s enforcement highlights the importance of maintaining high ethical standards and accountability within the industry.