The Financial Sector Conduct Authority has handed an administrative penalty to the chief executive of financial advice firm Carrick Wealth.
The South African watchdog’s Investigations and Enforcement Division confirmed it had carried out an investigation into Craig Featherby and others.
It concluded that, between 12 February 2009 to 30 April 2014, he failed to comply with the determination of fit and proper requirements for financial services providers.
The FSCA stated that Featherby “did not ensure that he had the operational ability to effectively manage and oversee the financial services related activities of DeVere whilst he was appointed as key individual to the financial services provider”.
Taking “cognisance of representations made by Featherby”, the FSCA imposed a penalty of ZAR 800,000 (£40,137, $55,856, €47,108), inclusive of costs.
No findings
In a statement sent to International Adviser, Carrick Wealth said that the matter was “wholly unrelated” to its affairs.
“In the course of its investigation, the FSCA did look into the affairs of both Carrick Wealth and Carrick Financial Services to ensure that best practices were being adhered to. The FSCA made no findings against either company and its investigation is now closed.
“The FSCA acknowledged throughout that Carrick is a very well run entity.”
Technical shortcomings
The statement continued: “Mr Featherby fully and willingly participated in the FSCA’s investigation, which concluded that, while he was a ‘key individual’ in respect of DeVere, there were some technical shortcomings in respect of the firm’s ability to meet its record-keeping and disclosure requirements as outlined in the Financial Sector Regulation Act.
“At all relevant times, Mr Featherby’s role at DeVere was to oversee macro-level business initiatives, and he had appointed officers to manage micro-level issues such as technical and regulatory compliance.
“Findings have not been made against these individuals. However, in recognition that leadership must ultimately take responsibility for a company’s shortcomings, and in a desire to move on and concentrate on his current role, Mr Featherby has agreed to abide by the FSCA’s order that he personally pays an administrative penalty of ZAR800 000.
“Mr Featherby hopes that his decision to avoid a lengthy appeal process and not to reopen an investigation into a firm at which he last worked seven years ago — and which has subsequently been sold by its owners — will allow him to focus his attention on Carrick Wealth.”
The statement added that Featherby “hopes that his decision to abide by the FSCA’s order demonstrates his commitment to good corporate governance, the highest standards of compliance with regulatory bodies’ orders, and the rule of law”.
A spokesperson for DeVere Group said the company cannot comment on ongoing regulatory procedures.
No details were provided in the FSCA press release about the “others” who were under investigation.
