Businessman loses R10m-FSCA bid

A CAPE Town businessman who operated a financial services provider (FSP) company and who did not pay outstanding levies despite numerous correspondence on the issue, failed in his complaint to the Equality Court in which he wanted R10 million, reinstatement of his company’s licence, as well as an unconditional apology.

- CHEVON BOOYSEN

Judge Mas-Udah Pangarker found against Lotterie Holdings Pty Ltd, and its director, David Lotterie, a micro lender who had instituted proceedings against the Financial Sector Conduct Authority (FSCA) in terms of Section 20 of the Promotion of Equality and Prevention of Unfair Discrimination Act 4 of 2000 (PEPUDA).

According to Lotterie’s relief sought, the damages claim was for reputational defamation and economic hardship suffered after his company’s licence was suspended in February 2021, when he failed to pay levies owed in terms of Section 15A of the Financial Services Board Act 97 of 1990 (FSB Act).

The business licence was suspended and eventually withdrawn prior to the presidential pardon, which was issued for small businesses as they were the hardest hit during the deadly Covid-19 pandemic.

The pardon, announced in July 2021, was issued for business licences and permits that expired between March 2020 and June 2021, and extended their validity to December 2022; no licence fees were payable for these extensions.