Treasury: Viceroy reckless in its Capitec report
Treasury has lashed out at Viceroy following its scathing report on Capitec.
It was responding to the research group's report which accused Capitec of engaging in reckless lending practices and massively overstating its financial assets and income.
Treasury says it doesn't believe Viceroy is acting in the best interest of South Africa.
"Until two weeks ago, Viceroy operated anonymously and opaquely, and the reckless way in which it has released its report is clear proof that it is not acting in the public interest nor in the interest of financial stability in South Africa."
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It has requested the Financial Services Board (FSB) to ask overseas regulators to determine if Viceroy is properly regulated.
"The FSB is requested to alert relevant overseas regulators, like the Securities and Exchanges Commission in the USA and the Financial Conduct Authority in the UK, to consider whether Viceroy is regulated appropriately, and to consider whether it has transgressed any of their market conduct and market abuse laws that aim to protect investors," says Treasury.
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Treasury has been in talks with the Registrar of Banks since the report was released.
It adds that it is satisfied with the assurance from the South African Reserve Bank that Capitec is well capitalised, liquid and solvent and meets all prudential requirements.