FSCA fines investment adviser R4.1 million after trading clients' funds without authorisation

FSCA penalises adviser over unauthorised client trades and Sanlam link.

The Financial Sector Conduct Authority (FSCA) has imposed an administrative penalty of R4.1 million to a financial adviser after finding that he traded clients' funds without the required authorisation and misrepresented his relationship with Sanlam Private Wealth.

In a statement issued on Monday, the regulator said its investigation found that Johannes Lodewicus Du Plessis collected money from clients and traded equities on their behalf through the Sanlam Private Wealth (SPW) iTrade trading platform between June 2022 and November 2025.

The investigation also found that he prepared and distributed welcome letters and investment statements that purported to have been issued by SPW.

According to the FSCA, the documents were printed on SPW letterheads and contained the company's Financial Services Provider (FSP) number, giving clients the impression that Du Plessis had been appointed as an SPW representative.

However, the regulator said he had not been appointed to act in that capacity.

The FSCA concluded that Du Plessis provided discretionary intermediary services relating to listed shares without the necessary authorisation.

It also found that he furnished investigators with false and misleading information during the investigation.

The FSCA said Du Plessis had materially contravened several financial sector laws, including provisions of the Financial Advisory and Intermediary Services Act and the Financial Sector Regulation Act.

The contraventions included providing financial services without the required authorisation and failing to comply with applicable regulatory requirements.

Following the investigation, the regulator decided to impose the R4.1m administrative penalty and debar Du Plessis from the financial services industry for 25 years.

The FSCA previously appointed Aubrey Magerman of Magermans Attorneys as curator over the financial services business of Du Plessis and JLD Investment.

The regulator said the curatorship process remained ongoing and was nearing completion.

Affected clients have been encouraged to approach Magerman to have their claims assessed.

The FSCA said it would formally bring the matter to the attention of the South African Police Service (SAPS) and would actively assist the police if requested.

The regulatory action follows the completion of the FSCA's investigation into Du Plessis's conduct.