Falsification of Regulatory Examination Results and Issuance of Fraudulent Certificates
15 June 2017, Johannesburg
- Following the announcement made yesterday
, by the Financial Services Board (FSB)
, on the high increase of debarment cases in the last year due the qualification and examination fraud which was discovered by the Financial Planning Institute (FPI). The investigation, initiated by the Institute in 2013 and concluded in 2014, uncovered evidence of collusion and falsification against 120 examinations and/or qualification records.
Based on the findings, FPI terminated the employment of the three employees involved in the scheme. It also reported the matter to the Financial Services Board (FSB), Insurance SETA (INSETA) and South African Police Service (SAPS) Commercial Crimes for further investigation and criminal prosecution against the perpetrators.
Even though none of the suspected examination candidates are members of FPI, the Institute has a zero tolerance for any act of fraud, given the high standards that FPI expects of all financial advisors in the industry. Since the investigation files were handed over, FPI has cooperated fully with FSB and SAPS to help further their respective investigations. FPI will continue doing so until criminal and administrative action has been taken against all the suspected candidates and ex-employees.
FPI is committed to the highest ethical standards. Its internal security measures, systems and processes have since been carefully re-examined and additional security protocols have been implemented to ensure that this situation never repeats itself.
For more media inquiries, please contact:
Tsholofelo Dihutso CPRP
Communications and PR Manager
Financial Planning Institute
T: (011) 470-6000