Asset manager fined R350 000 for promoting unapproved funds

The Financial Sector Conduct Authority has fined 36ONE Asset Management R350 000 for promoting investments in two of its unapproved funds.

According to a statement issued by the market conduct regulator on Thursday, 36ONE Asset Management promoted the 36ONE Hedge Portfolio and 36ONE Offshore Portfolio, both unapproved funds, between August 2015 and March 1, 2018.

Cayman Islands

"During the period of the contraventions, both these funds were registered in the Cayman Islands and were not approved by the Authority to be marketed to members of the South African public," the FSCA said.

The FSCA based the fine on the fact that the unapproved funds were hosted on 36ONE’s webpage for two years and seven months, and that the promotion of investments into the unapproved funds had a wide reach.

According to the maket conduct regulator, 36ONE had co-operated in the enforcement process.

"They rectified the contravention as soon as the authority notified them and there were no actual investments as a result of the contravention," the statement read.

The FSCA regulates financial institutions that provide financial services and products - this includes banks, insurers retirement funds and administrators, among others.

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