The Financial Sector Conduct Authority (FSCA) has debarred Mr Niven Magandheran Pillay (Pillay) and Mr Eric Anthony Wood (Wood) from rendering financial services or acting as key individuals for a period of 18 years. Pillay and Wood were senior officials of Regiments Capital (Pty) Ltd, a financial services provider (FSP) with a Category 1 licence (FSP 16831) that lapsed on 18 November 2020 and Regiments Fund Managers (Pty) Ltd, a Category 2 FSP whose licence (FSP 22302) was withdrawn by the FSCA on 12 June 2020.
These enforcement actions arise from an investigation conducted by the FSCA, which also considered the findings of the Zondo Commission. The investigation revealed that, between 2009 and 2016, Pillay and Wood, in their capacities as senior officials of Regiments Capital (Pty) Ltd and Regiments Fund Managers (Pty) Ltd, engaged in a pattern of conduct that was inconsistent with the standards of honesty, integrity, and good governance expected of persons in such positions, and in contravention of applicable statutory requirements.
The evidence inter alia established the existence of improper payment arrangements, unlawful revenue-sharing- and procurement practices.
The FSCA concluded that the conduct of Wood and Pillay adversely affected their fitness and propriety, particularly in relation to the requirements of honesty and integrity applicable to key persons within institutions operating in the financial services sector.
The State Capture Commission likewise made adverse findings regarding Regiments Capital’s involvement in various Transnet transactions, including procurement irregularities, conflicted arrangements, and the extraction of substantial advisory fees. The Commission further recommended that the conduct of implicated individuals and entities be subjected to further criminal investigation and that appropriate recovery proceedings be considered.