Tuesday, April 7, 2020

NBFIRA reads the riot Act

The Non-Bank Financial Institutions Regulatory Authority (NBFIRA) has temporarily shut down operations of one asset manager for non-compliance.

NBFIRA has communicated to the markets and the public that BluThorn Fund Managers has been placed under temporary closure in terms of section 57 of the regulator’s Act, which gives it powers to do inspections and investigations for any NBFIRA registered entity.

Curiously, BluThorn in the past two months was sifting through the labour market looking to appoint a compliance officer.

According to the company’s website, BluThorn is an investment group with its primary focus nestled in the financial services and related industries. It says the group generates wealth through investment in financial and private equity assets in specific niche market sectors.

The NBFIRA press release also added that the temporary closure of the company extends to Ecsponent Asset Management, a name BluThorn was previously incorporated and carried business under.

“The effect of the temporary closure is that BluThorn and/or Ecsponent is not permitted to transact Collective Investment Undertaking/Asset Management business with members of the public whilst the closure subsists,” NBFIRA said.

NBFIRA’s stern action comes a month after the South African financial services firm , Ecsponent, strengthened its grip in the local market as it expands from the financial sector, this time around acquiring a business involved in agriculture sector.

Last year December, the Johannesburg Stock Exchange listed Ecsponent, announced that it will acquire a 45.5percent stake in Crosscorn, a local based company whose principal activity is the production, sale and distribution of seeds. The company has a market share in excess of 50 percent of the maize seed sales in Botswana, and sells close to half of the country’s sorghum, cowpeas and animal fodder seeds.

Crosscorn is wholly owned by Scipion Active Trading Fund (SATF), a fund incorporated under the laws of the Cayman Islands.

RELATED STORIES