FSB warns of funeral fraudsters

The Financial Services Board (FSB) has sent out a warning people to engage with Stephan Richards and Tshepiso Lekganyane as they are selling unregistered funeral policies.

The FSB has said that both Richards and Lekganyane, who operate in the Gauteng area, are not authorised to give any financial advice, or to sell insurance policies.

The name of the funeral policy being sold is called the Gomolemo Benefit Plan, and the public is cautioned against buying a policy from this plan.

The product is not underwritten by and registered insurance company, thus making it fraudulent.

 “It is the FSB’s view that the abovementioned individuals are conducting unregistered insurance business and providing advisory and intermediary services without the necessary authorisation,” said the FSB in a statement.

Before conducting any business, whether accepting financial advice or purchasing insurance, the FSB asks consumers to check with them on their website, or by calling the toll free number (0800 110 443) to see if the business they are dealing with  are registered.

Related cases

Last year, Justmoney reported on other funeral homes which sold insurance policies without a proper license.
The FSB has so far warned the public against doing business with the following entities:

• Faizel Dollie Funeral Home,
• Clarinise Funeral Services,
• Abomelezi Funeral Services cc,
• Speelman Family Funeral Home,
• City Funeral Fund,
• Holy Cross,
• Maphutha Dihuswana Funeral Group,
• Tshwaragano Funerals and,
• Omega Funeral Services.

“When taking out a funeral policy, consumers must ask the company if it is registered with the FSB and confirm the information they are provided with the FSB before taking out a policy,” said the FSB.  

*At the time of publication the FSB had not yet replied to Justmoney’s comments.