THE FINANCIAL SERVICES TRIBUNAL

CASE NO.: A31/2022

In the reconsideration application between:

LAVELA LGM TRADING MULTI PURPOSE CENTRE (PTY) LTD	APPLICANT

and

FINANCIAL SECTOR CONDUCT AUTHORITY	RESPONDENT

DECISION

1	The Financial Sector Conduct Authority ("the Authority") withdrew the applicant’s licence to act as a financial services provider in terms of section 9(1) read with section 9(2) of the Financial Advisory and Intermediary Services Act, No. 37 of 2002.

2	The applicant applies for the reconsideration of the decision under sec 230(1) of the Financial Sector Regulation Act 9 of 2017.

3	The applicant failed to pay its prescribed levy but rectified that matter during a period of suspension. What it failed to rectify, and what gave rise to the withdrawal of the licence, was its failure to submit any financial statements and audit reports despite demand.

4	The decision of the Authority was thus, on what it had before it, correct.

5	The applicant has now brought new facts to the attention of the Tribunal. It is said that the applicant had not yet begun conducting any business and that it, accordingly, did not have any financial statements prepared because there was nothing to report. For the same reason it could not have submitted audit reports because there was nothing to audit.

6	It is possible that the Authority, had it known of these facts, would not have withdrawn the applicant’s licence without more. Recognising that the applicant is to blame for the situation, it would nevertheless be fair to set the decision aside and refer the matter back to the Authority to consider these facts in making a decision anew. The Tribunal does not hereby express any opinion about the result – the discretion remains that of the Authority.

7	Order: The withdrawal of the applicant’s licence is set aside, and the matter is referred to the Authority for reconsideration.

Signed on 10 November 2022.

LTC Harms (deputy chair)