- Amaswazi issued funeral policies unlawfully between January 2023 and April 2025.
- FSCA confirms breach of the Insurance Act and the FAIS Act, with R3.4 million collected and 145 claims settled.
- Director Magudulela admits fault and signs an enforceable undertaking to rectify conduct.
The Financial Sector Conduct Authority has confirmed that Amaswazi Funeral Home operated unlawfully for over two years by issuing funeral policies to nearly 1 000 clients without any licensed insurer.
Between January 2023 and April 2025, the company collected R3.4 million in premiums and settled 145 claims worth R974,800. None of the policies was placed with a licensed underwriter.
“This was a clear breach of the Insurance Act,” the FSCA stated. “No person may conduct insurance business in the Republic unless licensed.”
The investigation, which began in November 2024, found that Amaswazi also operated without authorization under the Financial Advisory and Intermediary Services Act. Director Mr. Nkosinathi Goodenough Magudulela admitted he was fully aware of the violations and confirmed that the company had no underwriting partner or registered representatives.
“I confirm that from 1 January 2023 to 30 April 2025, Amaswazi advised between 800 and 1,000 clients,” Magudulela said in the signed undertaking. “We collected R3 486 030 in premiums and settled 145 claims valued at R974 800. These clients were never placed with any licensed insurer.”
Despite the scale of the breach, Amaswazi cooperated with the investigation and took responsibility. The FSCA recognised this cooperation, but emphasised the importance of accountability.
Undertaking binds Amaswazi to urgent compliance
The FSCA has accepted an enforceable undertaking from Amaswazi and Magudulela under section 151 of the Financial Sector Regulation Act. Within 30 working days, they must prove that all funeral policies are underwritten by a licensed insurer and that every representative is properly registered with a licensed financial services provider. Moving forward, no client may be placed with an unlicensed underwriter.
Magudulela signed the undertaking both personally and on behalf of Amaswazi, stating: “We acknowledge the violations and commit to ensuring that all our insurance business is placed with a licensed underwriter.”
The FSCA warned that failing to comply will have serious consequences. Magudulela may be barred, and the Authority may impose administrative penalties or escalate the matter to the Financial Services Tribunal.
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