The Financial Sector Conduct Authority (FSCA) has imposed a fine of over R1.1 million on moving company Kings International Removers for offering insurance on clients’ belongings during relocations without being registered as a licensed financial service provider.
The FSCA levied an administrative penalty of R1,126,982 on Kings International Removers and its CEO, Rolf Michael Lamers. Lamers was also banned from participating in financial services for eight years after an investigation was launched following a complaint from one of the company’s clients.
The FSCA’s investigation revealed that Kings International Removers and Lamers violated multiple regulations, including sections 7(1) and 8(9)(c) of the Financial Advisory and Intermediary Services Act, as well as sections 7(1) and 8(2)(d) of the Short-term Insurance Act and section 5(1) of the Insurance Act. The violations involved providing financial services without proper authorization and issuing short-term non-life insurance policies to the public without a valid insurer’s license.
As a result, Lamers is prohibited from:
- Offering or engaging in the provision of financial services
- Acting as a key individual in any financial institution
- Providing specified financial services to any financial institution, whether through outsourcing arrangements or otherwise
Kings International Removers, which boasts nearly 100 years of experience in the industry and specializes in international family relocations, offers “Total Loss” and “All Risks” insurance coverage. However, the company’s website does not specify who underwrites these policies.
The “Total Loss” cover applies in extreme cases, such as the sinking of a ship resulting in the complete loss of the shipment. “All Risks” insurance covers damage to individual items during transit, even due to negligence.
The FSCA advises consumers to always verify that financial service providers are properly authorized by the FSCA to sell financial products. Customers should confirm the service provider’s FSP number and ensure it matches the FSCA’s records. For verification, the FSCA’s toll-free number, 0800 110 443, is available.