Latest news with #FinancialAdvisoryandIntermediaryServicesAct
The Citizen
2 days ago
- Politics
- The Citizen
Bushiris file application to set aside ruling ordering extradition to SA
The couple fled to Malawi in November 2020. Self-proclaimed prophet Shepherd Bushiri and his wife Mary in the Pretoria Magistrate's Court during their bail application on 4 November 2020. Picture: Jacques Nelles Self-proclaimed prophet Shepherd Bushiri and his wife, Mary Bushiri, have filed a review application to set aside the judgment ordering their extradition to South Africa. The Bushiris filed their application before the High Court of Malawi in Lilongwe on Wednesday. They claim they weren't given a chance to be heard, violating natural justice principles. Hearing In papers before the high court in Malawi, the controversial couple claim they weren't given a chance to be heard, violating natural justice principles They argued the chief magistrate erred in law by breaching the fundamental principles of natural justice. 'The applicants humbly but firmly pray for the quashing of the findings that the requesting State made out a case for extradition… setting aside of the order of committal.' In March, Malawi's Chief Resident Magistrate's Court ordered that the Bushiris be extradited following a request by South Africa. ALSO READ: Bushiri celebrates reduced charges, but can they be reinstated? Malawi's attorney general explains Charges They face at least six charges including rape, violating bail conditions, contraventions of the Financial Advisory and Intermediary Services Act, Banking Act, Civil Aviation Act and Immigration Act. The couple fled to Malawi in November 2020, after being granted bail of R200 000 each under strict conditions in the Pretoria Central Magistrate's Court. ALSO READ: Cops detained Bushiri's lawyers for corruption, intimidation say Hawks 'Safety and security' At the time, Bushiri cited 'safety and security issues' for their actions. 'There have been clear and evident attempts to have myself, my wife and my family killed. Despite our several attempts to report to authorities, there has never been state protection,' he said. 'We have come to a painful conclusion that what my wife and I have faced in the Republic of South Africa since 2015 is purely persecution, not prosecution. 'What is shocking is that it was me who, in 2018, opened cases of extortion and intimidation against the officers who are, today, investigating, arresting and prosecuting me and my wife of these several allegations. Obviously, there can never be independence and impartiality. It's purely acts of open vengeance,' Bushiri said. The Malawian couple run a church known as Enlightened Christian Gathering with branches in various African countries. ALSO READ: Malawi court grants South Africa's request to extradite Shepherd Bushiri and wife
IOL News
5 days ago
- Business
- IOL News
The legal implications of Buy Now, Pay Later services in South Africa
Explore the complexities of Buy Now, Pay Later services in South Africa, examining the legal challenges and regulatory uncertainties that could impact consumers and providers alike. Image: Shutterstock Buy Now, Pay Later (BNPL) payment options have strutted onto South Africa's financial runway with the swagger of innovation—offering interest-free instalments, bypassing traditional credit checks, and boasting sleek user interfaces that make old-school lay-bys look prehistoric. For consumers, it feels like a dream: swipe today, split it tomorrow. For platforms, it's fintech gold. But beneath the surface of this frictionless façade lies a regulatory grey zone thick with risk, ambiguity, and potential litigation. Is BNPL empowering consumers, or quietly indebting them? And when the legal hammer finally drops, who's left holding the bill? BNPL services allow consumers to make purchases immediately and pay for them in installments over a set period, usually without interest if payments are made on time. However, as BNPL usage increases, so do concerns around consumer debt, regulatory arbitrage, and financial exclusion. The central question in South Africa is whether BNPL products fall within the ambit of the National Credit Act (NCA) or the Financial Advisory and Intermediary Services Act (FAIS Act). The National Credit Regulator is responsible for compliance with the NCA, while the Financial Sector Conduct Authority (FSCA) is responsible for compliance with the FAIS Act. The South African BNLP landscape The consumer credit environment in South Africa is governed by the NCA, which regulates all credit providers and mandates affordability assessments along with other consumer protection mechanisms. BNPL providers often argue that they are not credit providers, as their terms and conditions do not constitute a credit agreement. This is because they charge no interest and operate within a very short payment cycle (e.g. 4 to 6 weeks). As a result, many BNPL firms claim exemption from NCA obligations. According to the Intergovernmental Fintech Working Group (IFWG), BNPL currently falls into a regulatory void. The NCR has taken limited action against providers, while the FSCA has yet to issue clear guidance. Consumers thus face reduced transparency, no guaranteed recourse mechanisms, and inconsistent contract terms. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ BNPL's legal classification determines the scope of regulatory obligations. If BNPL is credit, then the NCA mandates affordability checks, registration with the NCR, and extensive disclosures (amongst other things). However, most BNPL operators avoid these obligations by structuring their offerings as payment solutions or deferred billing. The FAIS Act regulates financial advice and intermediary services. BNPL providers rarely claim to offer financial advice, and as such, FAIS oversight is generally not invoked. This ambiguity causes a jurisdictional conflict between the NCR and FSCA, with little resolution. Moreover, South African consumers are often unaware of potential late fees, the implications of missed payments, or the lack of legal recourse, especially when providers collapse or change terms unilaterally. While legal classification remains unresolved, enforcement action against BNPL providers in South Africa has been minimal. In practice, the NCR's enforcement has focused largely on traditional credit providers, while the FSCA's mandate remains unclear in the absence of explicit statutory triggers. This lack of supervisory clarity raises risks of selective compliance, where only larger players seek legal advice or act preemptively, while smaller or offshore providers bypass South African oversight altogether. Moreover, without designated supervisory frameworks, enforcement becomes reactive, often occurring only after consumer harm has materialised. The Conduct of Financial Institutions Bill (COFI Bill) is envisaged to address these regulatory gaps. A modern regulatory regime must therefore address not only classification and jurisdiction, but also enforcement mechanisms, investigative powers, and co-ordinated oversight, possibly through inter-agency memoranda of understanding or joint supervisory task teams. Without this, regulatory gaps become systemic vulnerabilities. Global BNLP landscape United Kingdom: The Financial Conduct Authority (FCA) will regulate BNPL under new legislation taking effect in 2026. Providers will be required to conduct affordability checks, obtain FCA authorisation, and ensure clear disclosures. Consumers will be granted Section 75 protections under the Consumer Credit Act. Australia: The Australian Securities and Investments Commission (ASIC) has introduced legislation bringing BNPL under the National Consumer Credit Protection Act. From mid-2025, providers must hold a credit license, conduct responsible lending assessments, and comply with disclosure obligations. These requirements are tailored to balance innovation with consumer protection. United States (US): The Consumer Financial Protection Bureau (CFPB) has classified BNPL loans accessed via digital accounts as 'credit cards', triggering protections under Regulation Z. Dispute resolution, refunds, and chargeback rights are now part of BNPL transactions, although industry litigation may reverse this. These models demonstrate that proactive regulation, coupled with flexibility, is essential for managing BNPL risks. Comparative legal analysis of South Africa South Africa's current dual-regulator model (NCR and FSCA) is ill-equipped for the digital fragmentation of modern finance. The lack of a clear BNPL regulatory framework stands in contrast with jurisdictions where regulators have already expanded definitions of credit to include BNPL explicitly. Key takeaways include: The UK's reliance on disclosure and licensing. Australia's focus on credit licenses and suitability assessments. The US approach of function-over-form classification (if it behaves like a credit card, it is regulated like one). The hope is that the COFI Bill will reconcile its institutional gaps and avoid regulatory arbitrage by expanding statutory definitions and enforcing consistency. Fintech partnerships and platform liability BNPL services are frequently integrated directly into online retail platforms via Application Programming Interfaces (API) partnerships. This embedded finance model raises questions of liability, especially when the BNPL provider operates outside the regulatory net. In South Africa, it is unclear whether a platform offering BNPL at checkout could be deemed to be providing or facilitating credit under the NCA. Retailers and marketplaces must consider whether they are indirectly exposing themselves to liability or reputational risk, especially if their BNPL partners engage in misleading conduct, impose unlawful fees, or collapse without notice. Globally, regulators are beginning to scrutinise not just BNPL providers, but also the platforms and merchants who offer such services. The UK's FCA, for example, has signalled that contractual and operational accountability may extend beyond the primary credit provider. South African platforms should pre-emptively assess their BNPL partnerships through the lens of operational risk, consumer protection, and reputational resilience. Digital identity and affordability in a credit-light economy One major challenge for effective BNPL regulation in South Africa lies in consumer verification and affordability assessments. Without a robust credit history or consistent income documentation, many consumers who use BNPL services remain invisible to traditional risk models. This opens the door to over-indebtedness, particularly among the underbanked. Future BNPL regulation must therefore account for the reality of fragmented digital footprints and low formal credit participation. There is room for innovation: open banking frameworks, mobile payment data, and transactional analytics could support dynamic affordability models. However, this would require legal certainty around data access, privacy, and proportional use of financial profiling. BNPL operators who proactively invest in these tools, backed by transparent disclosures and consent practices, will likely be best positioned when regulation catches up. BNPL has redefined consumer finance by promising simplicity and speed, but the country risks repeating mistakes seen in unregulated microcredit booms if it fails to address its regulatory gaps. Global trends show that regulation can evolve in tandem with technology. By embracing reform and cross-sector collaboration, South Africa can lead in creating a safe, competitive digital finance ecosystem. * Lamola and De Meyer are partners at Webber Wentzel. PERSONAL FINANCE
The Citizen
11-05-2025
- Business
- The Citizen
Coin-It scam: KZN De Beer family faces high court over alleged R73.6m fraud
The Dundee-based De Beer family trio — Malcolm and Patricia (husband and wife) and their daughter Samantha — will be back in the High Court on May 28 on charges of fraud linked to the failed Coin-It investment scheme, which allegedly defrauded investors of R73.6m. According to Northern Natal News, the matter was postponed to allow the accused time to obtain certain documents, confirms National Prosecuting Authority spokesperson Natasha Ramkisson-Kara. The De Beers are accused of running Coin-It, an unregistered investment operation that promised returns by giving investors a stake in trucks supposedly working on mining contracts. The scheme later collapsed, leaving hundreds of investors out of pocket. 'In terms of the Financial Advisory and Intermediary Services Act [37 of 2002] and the Banks Act [94 of 1990], Coin-It was not authorised to accept deposits from investors,' says Ramkisson-Kara. 'The state alleges that the entity was not registered as a financial services provider and operated without the required licences.' All three accused remain out on R50 000 bail each. Malcolm and Patricia have also surrendered their passports as part of their bail conditions. Several properties have already been seized by the Asset Forfeiture Unit in terms of a Preservation Order granted by the Pietermaritzburg High Court in 2020. These include the Royal Country Inn (now student accommodation) and other properties, one of which, in the Dundee industrial area, is to be auctioned this month. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
11-05-2025
- Business
- The Citizen
Coin-It scam: De Beer family faces high court over alleged R73.6m fraud
The Dundee-based De Beer family trio — Malcolm and Patricia (husband and wife) and their daughter Samantha — will be back in the High Court on May 28 on charges of fraud linked to the failed Coin-It investment scheme, which allegedly defrauded investors of R73.6m. According to Northern Natal News, the matter was postponed to allow the accused time to obtain certain documents, confirms National Prosecuting Authority spokesperson Natasha Ramkisson-Kara. The De Beers are accused of running Coin-It, an unregistered investment operation that promised returns by giving investors a stake in trucks supposedly working on mining contracts. The scheme later collapsed, leaving hundreds of investors out of pocket. 'In terms of the Financial Advisory and Intermediary Services Act [37 of 2002] and the Banks Act [94 of 1990], Coin-It was not authorised to accept deposits from investors,' says Ramkisson-Kara. 'The state alleges that the entity was not registered as a financial services provider and operated without the required licences.' All three accused remain out on R50 000 bail each. Malcolm and Patricia have also surrendered their passports as part of their bail conditions. Several properties have already been seized by the Asset Forfeiture Unit in terms of a Preservation Order granted by the Pietermaritzburg High Court in 2020. These include the Royal Country Inn (now student accommodation) and other properties, one of which, in the Dundee industrial area, is to be auctioned this month. Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
04-05-2025
- Business
- The Citizen
Coin-It family trio back in court this month
The Dundee-based De Beer family trio — Malcolm and Patricia (husband and wife) and their daughter Samantha — will be back in the High Court on May 28 on charges of fraud linked to the failed Coin-It investment scheme, which allegedly defrauded investors of R73.6 million. The matter had been postponed to allow the accused time to obtain certain documents, confirmed National Prosecuting Authority (NPA) spokesperson Natasha Ramkisson-Kara. The De Beers are accused of running Coin-It, an unregistered investment operation that promised returns by giving investors a stake in trucks supposedly working on mining contracts. The scheme later collapsed, leaving hundreds of investors out of pocket. 'In terms of the Financial Advisory and Intermediary Services Act and the Banks Act, Coin-It was not authorised to accept deposits from investors,' said Ramkisson-Kara. 'The state alleges that the entity was not registered as a financial services provider and operated without the required licences.' All three accused remain out on R50,000 bail each. Malcolm and Patricia De Beer have also surrendered their passports as part of their bail conditions. Several properties and properties have already been seized by the Asset Forfeiture Unit, AFU, in terms of a Preservation Order granted by the Pietermaritzburg High Court in 2020. These include the Royal Country Inn (now student accommodation) and other properties, one of which, in the Dundee industrial area, is to be auctioned this month. HAVE YOUR SAY: Like our Facebook page, follow us on Twitter and Instagram or email us at Add us on WhatsApp 071 277 1394. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
