Asset manager Stanlib has paid back performance fees to some its investors, after an investigation by the Financial Sector Conduct Authority.
The regulator found that between January 2011 and June 2018 legal documents for some of the asset manager’s unit trusts did not make provision for performance fees, but these fees were being levied.
While the fees were disclosed to investors in what are called minimum disclosure documents, they were not included in supplemental legal documents.
The regulator said the fact that the asset manager disclosed the fees to investors in some of its documentation supported Stanlib's contention that it did not intend to mislead investors. However, it said the contravention was serious, noting it had occurred for roughly seven years.
Stanlib has paid back to fees to affected investors. It will also pay a R500 000 administrative fine to the regulator.
In an email to Fin24, Stanlib said the breach was "an administrative oversight".
"It is worth noting that none of these performance fees were earned by Stanlib, but were rather paid directly to the external underlying managers used in the funds," it said.
"Furthermore, Stanlib has adapted its internal processes to ensure that this administrative oversight does not occur again."
According to the FCSA, Stanlib filed an application to have its supplemental deeds amended to make provision for performance fees, which was accepted.