This judgment reviewed a decision by the Financial Services Tribunal which had set aside the debarment of a former financial services representative of the financial services provider (FSP). Despite finding that the Tribunal failed to take relevant facts into consideration, and did not properly consider the fit and proper requirements for purposes of debarment, the
Michael McCarthy
Credit provider held to be supplier of defective vehicle
By Patrick Bracher (ZA) & Michael McCarthy on
In December 2025, the Supreme Court of Appeal found that the bank which provided credit for the purchase of a vehicle was also the “supplier of the vehicle responsible for latent defects” entitling the purchaser to cancel the deal.
The purchaser bought a vehicle which experienced problems relating to the oil cooler and gearbox within…
Prescribed rate of interest is 10.25% from 1 January 2026
By Patrick Bracher (ZA) & Michael McCarthy on
The prescribed rate of interest is 10.25% per annum with effect from 1 January 2026. The previous rate was 10.5% per annum.
According to the Prescribed Rate of Interest Act, interest on debts where no rate is prescribed is calculated at the repo rate plus 3.5%. The prescribed rate of interest applies to all debts…
FSP’s use of “insure” in company name prohibited
By Michael McCarthy on
On 18 September 2025, the Financial Services Tribunal dismissed an application for reconsideration by a financial services provider for approval to use “insure” as part of the FSP’s company name because it was misleading when not used to describe the business of a registered insurer.
Section 5(9) of the Insurance Act expressly prohibits any person…
Debarments set aside because FSP lacked jurisdiction
By Michael McCarthy on
This blog is co-authored by Anathi Xaba, a candidate attorney.
On 18 June 2025, the Financial Services Tribunal granted three applications for reconsideration and set aside the debarments issued by the financial services provider because the conduct relating to the debarments only became known to the financial services provider after the applicants ceased to act…
Prescribed rate of interest is 10.75 % from 1 July 2025
By Patrick Bracher (ZA) & Michael McCarthy on
The prescribed rate of interest is 10.75% per annum with effect from 1 July 2025. The previous rate was 11.00% per annum.
According to the Prescribed Rate of Interest Act, interest on debts where no rate is prescribed is calculated at the repo rate plus 3.5%. The prescribed rate of interest applies to all debts…
Bundled credit insurance product found to contravene the National Credit Act
By Michael McCarthy on
In May 2025, the High Court found that a bundled credit life insurance product contravened the National Credit Act of 2005 by providing cover to policyholders who could not benefit from the cover offered. The credit life product included disability and retrenchment cover which the credit provider sold largely to pensioners, and to disabled persons…
FICA sanctions for financial services providers: an update
By Michael McCarthy on
On 02 April 2025 the Financial Sector Conduct Authority issued a press release setting out the administrative sanctions it had issued to three more financial services providers. The sanctions follow a continued trend by the FSCA to supervise the anti-money laundering and counter-terrorist financing efforts of the financial services industry and penalise any non-compliance found.
A positive greylisting update for South Africa
By Michael McCarthy on
On 13 June 2025, the Financial Action Task Force announced that “South Africa has substantially completed its action plan and warrants an on-site assessment to verify that the implementation of AML/CFT reforms has begun and is being sustained, and that the necessary political commitment remains in place to sustain implementation in the future.”
The final…
Joint Standard 1 of 2024: The new requirements for Outsourcing by Insurers
By Michael McCarthy on
In 2018 the Prudential Authority issued the well-known Prudential Standards regulating several aspects of insurance business, including outsourcing material business activities. In line with a growing trend of joint and collaborative regulation across regulators, in May 2024 the Prudential Authority and Financial Sector Conduct Authority issued Joint Standard 1 of 2024 on Outsourcing by Insurers…