The board and management of boutique wealth management firm Sasfin “deeply regret” the fraudulent activity that took place in the organisation, it noted in its full-year results announcements for 2024 on Tuesday.
“Since discovering this syndicate, Sasfin took significant steps, which included laying criminal charges against the implicated employees, responsibly exiting the forex business at a considerable cost, and taking steps to further strengthen its compliance and control environments,” it says.The criminal activities led to a R160 million fine being imposed on Sasfin Holdings, which has eaten into the wealth management firm’s full-year earnings as it was forced to raise a R55 million provision.
Sasfin received further notice of potential action from the Reserve Bank in relation to alleged contraventions by former staff and clients of the discontinued forex business. Sasfin finally published its results after facing suspension from the JSE for failure to submit its results within the stipulated three-month period in terms of the bourse’s listing requirements.
Sasfin group CEO Michael Sassoon says the company has strengthened its balance sheet, despite the challenges it has encountered – which “puts us in a strong position to finalise our strategic reset” .