Dynamic Wealth Management (Pty) Ltd and Another v Registrar of Financial Services Providers (53187/10) [2010] ZAGPPHC 122 (27 September 2010)

Dynamic Wealth Management (Pty) Ltd and Another v Registrar of Financial Services Providers (53187/10) [2010] ZAGPPHC 122 (27 September 2010)

The court found that the Registrar failed to comply with the statutory requirement to provide the applicants with a reasonable opportunity to respond before withdrawing their licences, as required by section 9(2)(a)(ii) of the FAIS Act. The Registrar's imposition of terms upon withdrawal was irregular and constituted an error of law, as such terms are only permissible upon suspension. The High Court retained inherent jurisdiction to grant interim relief, as section 26(3) of the Financial Services Board Act does not exclude its jurisdiction. The applicants established a prima facie right to relief, irreparable harm if the interdict was not granted, and the balance of convenience favoured...

Citation
[2010] ZAGPPHC 122
Parties
Applicant: Dynamic Wealth Management (Pty) Ltd; Applicant: Dynamic Wealth Stockbrokers (Pty) Ltd; Respondent: Registrar of Financial Services Providers
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
27 September 2010
Case Number
53187/10
Procedural Posture
Urgent Application / Interim Interdict Pending Appeal to the Appeal Board
Outcome
Interim interdict granted in favour of the applicants, with costs.
Judges
Ismail AJ
Legal Topics
Financial Services Provider Licensing, Audi Alteram Partem, Interim Interdict, Statutory Compliance, Administrative Review, Costs Order
Administrative Law Banking and Finance Civil Procedure Financial Services Provider Licensing Audi Alteram Partem Interim Interdict Statutory Compliance Administrative Review +1 more

Case Brief

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Parties

Dynamic Wealth Management (Pty) Ltd

Applicant

Dynamic Wealth Stockbrokers (Pty) Ltd

Applicant

Registrar of Financial Services Providers

Respondent

Procedural Posture

Urgent Application / Interim Interdict Pending Appeal to the Appeal Board

Legal Issues

  1. 1 Whether the Registrar complied with statutory requirements before withdrawing the applicants' financial services provider licences.
  2. 2 Whether the Registrar was entitled to impose terms upon withdrawal of the licences.
  3. 3 Whether the High Court had jurisdiction to grant interim relief pending the outcome of the appeal to the Appeal Board.

Ratio Decidendi

The court found that the Registrar failed to comply with the statutory requirement to provide the applicants with a reasonable opportunity to respond before withdrawing their licences, as required by section 9(2)(a)(ii) of the FAIS Act. The Registrar's imposition of terms upon withdrawal was irregular and constituted an error of law, as such terms are only permissible upon suspension. The High Court retained inherent jurisdiction to grant interim relief, as section 26(3) of the Financial Services Board Act does not exclude its jurisdiction. The applicants established a prima facie right to relief, irreparable harm if the interdict was not granted, and the balance of convenience favoured...

Court Disposition

Interim interdict granted in favour of the applicants, with costs.

Orders

  • The respondent is interdicted from implementing, giving effect to, or further publishing its decision to withdraw the financial services provider licences/authorisations (FS559 and FSP7652) of the first and second applicants pending the outcome of an application to be launched by the applicants in terms of section...
  • The respondent is ordered to immediately issue a media statement reflecting the contents of this order.