- Cheu admitted to opening multiple insurance policies without client knowledge or valid signatures.
- The Tribunal found her defence unconvincing and dismissed her application as frivolous.
- The case highlights the trend of rising FSP debarments amid increased regulatory enforcement.
The Financial Services Tribunal has dismissed the application of former Liberty Group adviser Mary Binga Makoma Cheu to overturn her debarment, confirming that she had opened multiple life insurance policies without the knowledge or consent of at least five clients.
The decision aligns with a national trend of rising FSP debarments, as financial services providers tighten internal compliance and regulators crack down on misconduct.
Tribunal rejects confession retraction and client defenses
Following a forensic investigation launched by Liberty Group in June 2024, Cheu was found to have submitted policies with forged signatures and colluded with individuals to defraud the company.
A handwritten confession dated 23 July 2024, in which Cheu admitted to all allegations, played a decisive role in the case. Only during the Tribunal challenge did she claim she was rushed and coerced into writing the statement, an allegation the Tribunal found inconsistent and lacking credibility.
She attempted to bolster her defence with affidavits from two clients, but these failed to counteract the weight of the original findings. The Tribunal concluded that her explanations and evidence did not undermine the central facts of misconduct.
Due process followed as industry watchdog signals zero tolerance
Liberty Group had followed the prescribed procedures under the FAIS Act, including giving written notice of its intention to debar Cheu, sharing its policy on debarments, and offering her an opportunity to respond.
On 5 March 2025, Cheu was officially debarred on the grounds that she no longer met the “fit and proper” standards required of representatives. Her attempt to have the decision reversed was dismissed under Section 234(4) of the Financial Sector Regulation Act, which allows for the summary dismissal of applications that are frivolous or vexatious.
“The Tribunal can find no grounds to interfere with the respondent’s decision to debar the applicant,” the ruling stated.
With rising FSP debarments being reported across the industry, institutions are under pressure to take swift action against any representative whose conduct falls short of ethical and professional standards.
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