From CompliNEWS | Financial Service Intelligence Watch

R Jeewan v Fairbairn Consult (Pty) Ltd (debarment for failing to meet the ‘fit and proper’ standards)

Financial Services Tribunal (‘FST’ or ‘Tribunal’)
Parties: R Jeewan v Fairbairn Consult (Pty) Ltd Case No: FSP37/2024
Date of Decision: 23 December 2024

The Tribunal has upheld the debarment of Mr Rakesh Jeewan, a former representative of Fairbairn Consult (Pty) Ltd, for failing to meet the ‘fit and proper’ standards required under the Financial Advisory and Intermediary Services (FAIS) Act. The Tribunal dismissed Mr Jeewan’s application for reconsideration, citing his failure to provide a reasonable explanation for a 44-day delay in filing his appeal and weak prospects of success in overturning the debarment decision.

Key Findings

Conflict of Interest
Mr Jeewan facilitated the creation of Kaytes Taxi Group, a business operated by Ms Priscilla Gopaul, despite her lack of qualifications to act as an insurance broker. He failed to disclose his involvement, which created a conflict of interest.

Breach of Fiduciary Duty
The Tribunal found that Mr Jeewan allowed Ms Gopaul to act as a de facto broker, collecting insurance premiums without remitting them to the insurer, resulting in client complaints and the cancellation of contracts.

Data and IP Violations
Mr Jeewan violated the Protection of Personal Information (PoPI) Act by sharing confidential client information and granting unauthorised access to Fairbairn’s intellectual property.

Delay in Filing Reconsideration Application
The Tribunal noted that Mr Jeewan’s reasons for the late filing—ongoing consultations and a last-minute request for documents—were inadequate and did not justify the delay.

Tribunal’s Decision

The Tribunal concluded that:

  • The respondent, Fairbairn Consult (Pty) Ltd, had complied with procedural fairness throughout the debarment process.
  • The evidence supported the conclusion that Mr Jeewan no longer met the ‘fit and proper’ standards required to act as a financial services representative.
  • The application for condonation was dismissed, and the debarment of Mr Jeewan remains in effect.

     

This decision reinforces the importance of ethical conduct, transparency, and adherence to regulatory standards in the financial services sector. Institutions and representatives are reminded of their duty to uphold these principles to maintain trust and integrity in the industry.

Read the Full text of the FST Decision here