/ 29 May 2006

Dodgy financial advisers named

Before using a financial adviser, it is worth checking if he or she has been ”S-referenced” by the Life Office’s Association (LOA). The system aims to protect consumers from advisers who are considered unfit to be marketing the products of the long-term-insurance industry. The system is one of self-regulation operated by the LOA.

In March this year, the LOA S-referenced 23 financial advisers. One adviser was S-referenced for misrepresentation, while the remaining 22 were S-referenced for submitting fictitious policies. In addition to being S-referenced for submitting fictitious policies, one of the 22 advisers was also found guilty of misappropriation of a client’s money and another of misrepresentation.

Participants in the S-reference system will not employ, accept new business from, or pay commission to an S-referenced financial adviser. S-referenced persons may also not be employed in a position that allows them control over advisers or their training.

An S-reference can be imposed upon an adviser for up to three to five years. After the expiry of this period, the S-reference will lapse.

The following advisers were all S-referenced for a period of five years.

Results of the S-reference hearings held in Pretoria during March

1. Ms Degracia Baloyi of Dobsonville, Gauteng

ID: 600523 0638 085 — submitting a fictitious policy

2. Ms Ntombifuthi P Ngcobo of Dobsonville, Gauteng

ID: 820306 0232 081 — submitting a fictitious policy and misappropriation of a client’s money

3. Ms Victoria T Makati of Pimville, Gauteng

ID: 580414 0881 087 — submitting fictitious policies

4. Mr Francois G M Wiid of Potchefstroom, North West

ID: 771107 5050 083 — submitting fictitious policies

5. Ms Welheminah Mahlo of Hammanskraal, Mpumalanga

ID: 81063 0036 6082 — submitting a fictitious policy

6. Ms Nonhlanhla N Msweli of Springs, Gauteng

ID: 700424 0462 080 — submitting a fictitious policy

7. Mr Satish Rampershad of Amanzimtoti, KwaZulu-Natal

ID 620911 5183 080 — submitting fictitious policies

8. Mr Nick Mavrodaris of Westville, KwaZulu-Natal

ID: 500626 5115 081 — submitting fictitious policies

9. Mr Abraham G Reeners of Queenstown, Eastern Cape

ID: 771222 5158 081 — submitting fictitious policies

10. Ms Hemlata Vallabh of Sandton, Gauteng

ID: 730313 1261 084 — submitting fictitious policies

11. Ms Johanna C Theron of Pietermaritzburg, KwaZulu-Natal

ID: 610411 0055 088 — misrepresentation and submitting fictitious policies

12. Ms Ntebo M Kgaratsi of Phokeng, Mpumalanga

ID: 681213 0711 080 — submitting fictitious policies

13. Mr Jonas M Komako of Senoane, Gauteng

ID: 800104 6383 089 — submitting fictitious policies

14. Mr Nceba Didiza of Flagstaff, KwaZulu-Natal

ID: 730303 6985 084 — submitting fictitious policies

15. Ms Chioma DD Okoro of Radiokop, Gauteng

ID: 780711 0648 087 — submitting fictitious policies

16. Mr Zongezile J Nyathela of Vanderbiljpark, Gauteng

ID: 501228 5681 086 — submitting fictitious policies

17. Mr Olabod A Fadulu of Cresta, Gauteng

ID: 680329 5628 185 — submitting fictitious policies

18. Mr Gerhard Fourie of North Riding, Gauteng

ID: 781118 5027 086 — submitting fictitious policies

Results of the S-reference hearings held in Cape Town during March

1. Mr Xoliswa S Nondumo of Motherwell, Eastern Cape

ID: 601220 0584 083 — submitting fictitious policies

2. Mr Gqibelo Jolobe of King Williams Town, Eastern Cape

ID: 640919 5081 085 — submitting fictitious policies

3. Ms Thembisa M Deki of Port Elizabeth, Eastern Cape

ID: 670916 0719 084 — misrepresentation

4. Mr Rudolf Malgas of Upington, Northern Cape

ID: 820130 5377 083 — submitting fictitious policies

5. Mr Mvuyisi T Klaas of Khayelitsha, Western Cape

ID: 701124 5778 089 — submitting fictitious policies

The LOA has implemented an enquiry mechanism on its website that enables consumers to determine whether a particular financial adviser has been S-referenced.

More information on the S-reference system is available on the LOA website under ”Code of Conduct — Chapter 8”.