Viceroy fined R50m by financial regulator

The Financial Sector Conduct Authority (FSCA) has imposed a penalty of R50 million on Viceroy Research and its partners  for publishing misleading statements about Capitec Bank.

In 2018, Research group Viceroy accused Capitec of engaging in reckless lending practices and massively overstating their financial assets and income.

Viceroy first came to South African prominence when it exposed irregularities at international retailer Steinhoff.

FSCA commissioner Unathi Kamlana says it found that Viceroy contravened the Financial Markets Act.

“A contravention of section 81 of the FMA is a  serious offence that can cause significant harm to investors, listed entities and the broader market,"

Kamlana says the R50 million penalty will serve as a deterrent.

“This penalty is particularly significant because it shows just how far the FMA reaches. Although the Viceroy Research Partnership, and its partners, are not financial institutions and are domiciled in a different jurisdiction, their comments about South African listed securities make them subject to the stipulations of the Act,"

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