The Banxso R2 billion penalty has become one of the most significant enforcement actions ever issued by the Financial Sector Conduct Authority (FSCA). The regulator confirmed that Banxso (Pty) Ltd and several of its senior executives will collectively face the Banxso R2 billion penalty for extensive regulatory breaches and serious financial misconduct. This comes alongside a series of additional fines, personal sanctions, and lengthy debarments following a comprehensive FSCA investigation.
On top of the headline Banxso R2 billion penalty, the authority imposed a further R16 million fine for additional contraventions. Several executives received personal penalties:
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Manuel de Andrade — R20 million
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Mohammed Bux — R10 million
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Henry James Simpson — R5 million
Key individuals Harel Adam Sekler and Warwick David Sneider were also listed in the enforcement order.
In one of the firmest actions taken in recent years, Sekler, Sneider, de Andrade, and Bux have each been banned from the financial services industry for 30 years, while Simpson received a 10-year debarment.
The penalties stem from a deep-dive FSCA investigation that uncovered a concerning pattern of misconduct. According to the authority, Banxso and its leadership:
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misappropriated client funds,
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misled investors with false or unrealistic return claims, and
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failed to act in clients’ best interests — a fundamental compliance requirement.
The FSCA confirmed that this behaviour amounted to breaches of the Financial Sector Regulation Act, the FAIS Act, and multiple provisions of the General Code of Conduct for Financial Services Providers. The authority described the findings as a substantial breakdown in governance, integrity, and fiduciary duty within the organisation.
In determining the size of the Banxso R2 billion penalty, the regulator considered the financial benefit that Banxso and its executives allegedly gained from the misconduct, as well as the broader damage inflicted on clients and on confidence in South Africa’s financial sector.
Due to the seriousness of the violations, the FSCA has escalated the matter to the South African Police Service (SAPS) and has committed to providing full support, including evidence from its investigation, should criminal charges follow.
Banxso has responded briefly, acknowledging the weight of the findings and noting that its legal team is reviewing the matter.
“We respect the regulatory environment in which we operate, but we believe there are substantial aspects of this decision that require legal scrutiny,” the company said. “We are exploring all possible avenues to challenge what we believe are significant concerns with the outcome.”
