Latest news with #FirstRand
IOL News
09-08-2025
- Business
- IOL News
FSCA warns against platform using deep fake videos of Siya Kolisi for investment
, Springbok captain Siya Kolisi Image: BackpagePix The Financial Sector Conduct Authority (FSCA) warned on Friday that individuals are using a deepfake video involving Siya Kolisi and the logos of amongst others, the FSCA, FirstRand and the South African Reserve Bank (SARB) to solicit investments from the public. Kolisi has made history by becoming the first black captain of the South African rugby team, the Springboks and has shot to fame. The FSCA said the public must be cautious when conducting financial services business with an investment platform purporting to be associated with it, the SARB, First Rand Limited and Standard Bank Limited. In the deepfake video Kolisi is seen promoting investments via a platform, where investors are offered unrealistic returns. Investors are offered returns of between R8 000 and R12 000 per day on an investment of R4 400, and monthly returns up to R160 000 a month. The SARB and FirstRand have distanced itself from the deepfake video and are conducting its own internal investigations regarding the use of its details, in what is clearly a deepfake video. The FSCA also confirms that it is not associated with those behind the deepfake videos. The individuals behind the deepfake video did not respond to FSCA enquiries. To avoid unnecessary risk, the public should refrain from accepting financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA. 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 ✕ Ad Loading Authorised financial services providers must clearly display their authorisation status in their documentation. If this is not present, it is advised to further investigate before making any payments. It is highly recommended that the public verify that an entity or individual is authorised by the FSCA to provide financial products and services, including for giving recommendations about how to invest. One of the following methods may be used to confirm the status and FSP number of a service provider or a person that claims to be an authorised service provider is a toll-free number: 0800 110 443 or online search for authorised financial institution by license category BUSINESS REPORT
SowetanLIVE
08-08-2025
- Business
- SowetanLIVE
Mary Vilakazi - Breaking through the glass ceiling
Making the most of opportunities has been an important stepping stone for Mary Vilakazi, the CEO of FirstRand — South Africa's biggest banking group. FirstRand, boasting a R400-billion market capitalisation, is a leading financial services group whose divisions include First National Bank (FNB), Wesbank, and Rand Merchant Bank (RMB), employing around 50 000 people globally. "Growing up I would not have said I would be CEO of the largest bank in South Africa, but it is [the outcome of] a series of opportunities I was fortunate to have. I got opportunities along the way and that is what made the difference,' Vilakazi says. 'I always say I was not the brightest or the most gifted, but I managed to get opportunities, whether it is a bursary or someone offering me vacation work or a school programme — all of those things are important because without access to them I would not be here.' Vilakazi joined FirstRand in 2018 as group chief operating officer and took over as CEO in April 2024, becoming the first woman to serve at the helm of the group. Her track record speaks for itself: she previously served as the deputy CEO of MMI Holdings and chief financial officer of the Mineral Services Group. Growing up in Alexandra, north of Joburg, Vilakazi has had a knack for business from a young age. 'My mother wanted me to earn money when I was very young; it was a helpful skill. Instead of giving me pocket money, she gave me a packet of sweets to sell and said I could keep the profits,' Vilakazi says. She describes her tenure as CEO as both challenging, owing to the unique micro-economic environment resulting from FirstRand's diverse geographic footprint, and rewarding, owing to the progress that has been made to address some of South Africa's structural challenges.
The Guardian
04-08-2025
- Automotive
- The Guardian
‘It's a bit strange': the UK factory worker who beat the car lenders in court
Marcus Johnson never expected he would be rushing to a car park during a family holiday in Minehead to discuss a ruling by the highest court in the UK. But the 35-year-old factory worker from Cwmbran in south Wales also had little idea that a loan he took out in 2017 to buy a second-hand Suzuki Swift would place him at the heart of a David v Goliath battle. His case would go on to expose egregious commission practices in the car finance market and lead to a compensation scheme that could cost some of the UK's largest banks and specialist lenders up to £18bn. 'I thought it would be like when you did those PPI claim forms: you were just going to get a few pounds in the bank in a month or two. That's what I expected this to be,' Johnson said. 'I had no idea it would turn into what it has today; I had no idea the impact it would have.' What started as interest in a Facebook advert about potential misselling of car loans led to a three-and-a-half year legal battle escalating to the UK supreme court. On Friday, Johnson's case was the sole one of three consumer complaints left standing, with supreme court judges concerned about his 'unfair' treatment by car lenders. That was due in part to the size of the commission that the lender paid to the car dealer – a quarter of the Suzuki's near-£6,500 price tag – as well as a failure to disclose that a single lender, in this case South Africa's FirstRand, was given first dibs on the contract, rather than it being taken to a panel of lenders to secure the best deal. Johnson admitted he did not read all the documents that the Cardiff dealership gave him about the blue hatchback. But the supreme court questioned whether it was reasonable to expect 'commercially unsophisticated' borrowers to read and understand the terms of the commission buried in reams of fine print. 'It was a very rushed process where they gave me a big box full of paperwork and expected me then to comb through hundreds of pages,' Johnson recalls. 'I felt like they were telling me what I needed to know. I had no idea that they were leaving things out.' Once lawyers explained the terms of his loan, Johnson was floored. 'As all the evidence and all the information was presented, I almost found it unbelievable.' His case, which has dragged through Britain's legal system since November 2022, exposed the complex and symbiotic relationship between lenders, manufacturers and car dealers in the UK's multi-billion pound motor finance industry. Between 80% and 90% of new cars in the UK are now bought using borrowed money, with dealers paying commission to lenders. Had the two other cases bundled with Johnson's claim been upheld, the industry could have faced a massive compensation bill fit to rival the £50bn PPI scandal. Johnson, speaking during a trip to Butlins with his six-year-old daughter, said the entire saga had been stressful at times and pushed him out of his comfort zone. He even gets recognised on the street, thanks to doing TV interviews. 'I'm not shy, but I kind of keep myself to myself, so it's just a bit strange for me.' However, he feels it is a small price to pay to hold lenders to account. He said one car finance company reached out to him in recent months to ask how they could be more transparent with buyers. Johnson is hoping those changes last and that the regulator's new compensation scheme will give money back to consumers who were unknowingly overcharged. 'Hopefully it opens up a way for people in my position to be able to get what they should back. I would definitely do it all again.' Even Andrew Wrench, 61, who lost his case in the same court ruling on Friday, said it was worth the battle. Judges rejected Wrench's case, alongside another filed by nurse Amy Hopcraft, which argued commissions paid to car dealers amounted to bribes, and that dealers should be acting in customers' best financial interests. While it proved a disappointing end to his 26-month court battle, Wrench said family and friends were proud of his work. 'My nephew Billy said 'look, you've highlighted it. You've done the right thing. A lot of people respect you for that, and be proud of what you've achieved, because there are going to be some compensatory packages for consumers.'' While Wrench will not get a payout on that single claim, he acknowledged there could have been sweeping repercussions if his case was upheld. Car lenders have warned that a big compensation bill could push some firms into failure, while others would offer fewer, or more expensive loans, to claw back their losses. That could restrict options for people who relied on credit. Spooked by the warning, the chancellor, Rachel Reeves, subsequently launched a failed bid to intervene in the supreme court ruling, and warned judges to avoid handing a 'windfall' to consumers. Reeves later considered overruling the supreme court with retrospective legislation, in order to curb a potential £44bn bill. 'I didn't want anybody to lose jobs. I don't want the economy to be affected. And the Treasury is already in a mess anyway,' Wrench said. 'I wasn't in it for that and I wasn't in it for compensation at all. I was in, from the get-go, [to expose lenders] that were deceitful, dishonest and otherwise.' But Wrench's work is not over. He has one more car finance claim to pursue, and has two other unrelated cases – on mortgage terms and diesel emissions claims – making their way through the courts. In the meantime, he is keeping inspirational figures, such as the underdog lawyer and environmental campaigner Erin Brockovich, in mind. 'She risked everything to take on the big boys.'
Yahoo
04-08-2025
- Automotive
- Yahoo
Motor finance redress scheme to cost up to £18bn, FCA says
The Financial Conduct Authority has confirmed it will consult on an industry-wide redress scheme following the Supreme Court's motor finance ruling last Friday. The City watchdog is aiming to publish a consultation by early October, with total costs of the redress expected to be between £9bn and £18bn. The regulator said in June any scheme must keep the market afloat in order to curb rising costs for consumers. Comprehensiveness, fairness, certainty, simplicity and cost effectiveness, timeliness, transparency and market integrity were listed as the key criteria for a scheme, though the watchdog said there would be 'tensions' between these principles and it would seek to strike a balance. The announcement follows a partial win for City banks in their bid to overturn the Court of Appeal's ruling last October, which found it was unlawful for banks to pay a commission to a car dealer without the customer's informed consent. The Court sided with the lenders in two cases but found in the case of Johnson, which was against South African lender FirstRand bank, there was scope for compensation under the Consumer Duty act. Jefferies analysts said the cost of the redress scheme is expected to hit market leader Lloyds Banking Group by £1.25-£2.5bn. 'But other factors will affect this, in particularly its share of DCAs and high-commission cases,' they added. 'On balance, though, we are very comfortable with our estimate of around £2bn and still expect Lloyds shares to increase by five to nine per cent Monday morning.' Supreme Court handed lenders partial win Last Friday, Lord Justice Reed, President of the Supreme Court, said the commission in Johnson's case was 'unfair' and in turn he was entitled to compensation. But the redress scheme is expected to curb the worst case scenario dreaded by the City and Treasury, where analysts have predicted total costs reach £44bn. Reports emerged that Chancellor Rachel Reeves was exploring routes to over turn the Supreme Court amid fears the lenders were to be hit with a nightmare judgment. Lord Justice Reed said ahead of the ruling being announced the FCA had advised it be unveiled after markets closed for the weekend to avoid 'disorder'. 'The markets will need time to digest and consider its implications,' Reed said. Lloyds Banking Group – which owns leading vehicle finance provider Black Horse – leads the pack for provisions for the car mis-selling scandal at £1.2bn. Meanwhile, Santander and Barclays were on the hook for £295m and £90m. Since the Court of Appeal's ruling, firms have flocked away from the market. Santander announced it was spinning off its motor finance division earlier this year meanwhile specialist lender Secure Trust Bank said it would phase out the business' loan book. The regulator said it aims to finalise fresh rules for a scheme to launch by 2026 and consumers beginning to receive compensation next year. The scheme will cover agreements going back to 2007 in line with complaints the Financial Ombudsman Service can consider. The FCA said it was still mulling an 'opt-in or opt-out' process. The FCA has said: 'Our consultation will cover how firms should assess whether the relationship between the lender and borrower was unfair for the purposes of our scheme and, if so, what compensation should be paid.' It added: 'We will also consult on which non-discretionary commission arrangements should be included. This is because the Supreme Court decision in the Johnson case, which did not include the payment of any discretionary commission, makes clear that non-disclosure of other facts relating to the commission can make the relationship unfair.'
Glasgow Times
04-08-2025
- Automotive
- Glasgow Times
Mike Dailly: What to do if you have a car finance mis-selling claim
While claims management companies (CMCs) prepared for a bumper bonanza – their fees could have topped a third of the £44 billion claims bill – fate had other plans. Last October, the English Court of Appeal held that car sales firms couldn't lawfully receive commission from finance companies unless they had the customer's "fully informed consent". On Friday, the UK Supreme Court (UKSC) gave its ruling in the three linked appeal cases of Hopcraft, Johnson and Wrench. It decided car firms didn't owe their customers a fiduciary duty when arranging car finance. A fiduciary duty is a legal obligation to act in someone's best interests – like a trustee would owe to a beneficiary or a director owes to a company. The lack of a commission disclosure applied to almost all car finance agreements, so any claim based purely on that point is now lost. However, in the case of Johnson, an unfair relationship challenge was upheld under section 140A of the 1974 Consumer Credit Act. The UKSC said, 'the size of the commission paid by FirstRand (the lender) to the dealer was significant, amounting to 25 per cent of the advance of credit and 55 per cent of the total charge for credit (comprising interest and fees). The fact that the undisclosed commission was so high is a powerful indication that the relationship between Mr Johnson and FirstRand was unfair'. Car finance is a £40 billion per year business in the UK. Traditionally, most people would buy a car using a hire purchase (HP) or conditional sale agreement – both types of consumer credit where you own the car at the end of the agreement. After the financial crisis of 2008, personal contract purchase (PCP) grew to become the most popular form of credit to buy new and used cars in the UK. After an initial deposit, the monthly payments are lower than HP and after a few years you can either make a 'balloon payment' to own the car outright or swap the car for a new model. 83 per cent of car finance deals use PCP. Car dealers generally act as brokers for lending companies. Until January 2021, dealers were able to set the interest rate on loans within a low to high range – known as a discretionary commission arrangement (DCA). Their customers didn't know the car dealer would get a higher DCA if they persuaded you to accept a higher interest rate. This unethical conflict of interest was banned by the Financial Conduct Authority (FCA) in January 2021. But 40 per cent of car finance deals involved DCAs – the number of consumers with pre-January 2021 car finance who might have a valid claim runs into the millions. DCAs fall foul of the FCA's regulatory rules on fairness and transparency. The FCA is expected to announce a consultation on a 'redress scheme' under section 404 of the 2000 Financial Services and Markets Act by today. If this happens, the scheme will be free and easy to use. If you think you're affected don't use a CMC – why give a claims farmer a third of the hard earned cash you've already paid when you can do this for free? You can get free guidance on how to claim under any redress scheme from and other trusted consumer guides.
