A R100 million fine to the Met Collective Investments (METCI) has been reduced to R30 million, the Financial Sector Conduct Authority (FSCA) said.
In a statement issued on Friday, the FSCA noted the decision of the Financial Services Tribunal to set aside its finding of "recklessness" and to reduce the penalty to METCI.
In October last year, the FSCA had fined METCI R100 million after one of its unit trusts lost two-thirds of its value in half a week, Fin24 previously reported. During the week of 8 to 15 December, 2015, the Third Circle MET Target Return Fund lost 66% of its value, amid a period of massive volatility when former finance minister Nhlanhla Nene was replaced with the ANC unknown Des van Rooyen.
METCI, however, applied to the Financial Services Tribunal to reconsider the FSCA's decision.
"The Tribunal has set aside the FSCA's finding of recklessness. It also reduced the penalty imposed by the FSCA for contraventions that included, amongst others, that METCI failed to administer the CIS scheme with due care, skill and diligence on the basis that it was inappropriately high," the statement from the FSCA read.
"The Tribunal replaced the penalty imposed by the FSCA with a penalty of R30 million, of which it remitted R10 million."
Compiled by Lameez Omarjee.