- Directors of Uzuko Funeral Services issued 38 funeral policies without a licensed insurer, collecting over R2 million in premiums.
- The client book has been transferred to an authorised provider, Fern Funeral Policies, underwritten by Sanlam Life Limited.
- Future operations must ensure all representatives are licensed, and clients’ policies are placed with authorised insurers.
For many South African families, funeral insurance is more than a policy; it is a vital promise of dignity and financial security in times of grief.
That promise was shattered for over 1000 clients when Uzuko Funeral Services sold funeral cover without a licensed insurer, collecting millions in premiums and leaving families at risk of having claims denied when they needed support the most.
In an unprecedented intervention, the Financial Sector Conduct Authority (FSCA) acted to restore faith in the system. The FSCA held Uzuko’s directors personally responsible, transferred all affected client policies to a fully licensed provider, and sent a clear warning to the entire industry that such conduct will not be tolerated.
Gerhard van Deventer, signing for the FSCA, said, “Policyholders must have certainty that their premiums are protected and claims will be honoured. Issuing funeral policies without a licensed insurer undermines the integrity of South Africa’s financial sector.”
Directors sold funeral policies without a licensed insurer
The FSCA concluded an investigation into Trans Atlantic Financial Services, trading as Uzuko Funeral Services, and its directors, John Edward Lomas and Nomvuyo Selina Sobekete, following serious breaches of financial sector laws.
It found that between 1 December 2023 and 30 June 2025, Uzuko Funeral Services sold 38 funeral policies without a licensed insurer. During this period, the company collected R2 149 112.91 in premiums from 1 188 policyholders and processed 80 claims valued at R552 000. Only 14 of these policies remain active. The FSCA’s investigation found that clients’ insurance business was not placed with any authorised insurer, leaving policyholders exposed to significant risk.
Van Deventer said that issuing funeral policies without a licensed insurer undermines the integrity of South Africa’s financial sector, and that policyholders must have certainty that their premiums are protected, and claims will be honoured.
Contraventions of financial sector laws
The investigation revealed that Lomas and Sobekete knowingly permitted and facilitated these activities. This conduct contravened Section 7 of the Financial Advisory and Intermediary Services Act, which prohibits unlicensed financial service providers, as well as Section 5 of the Insurance Act, which prohibits conducting insurance business without a licence.
Van Deventer also stated that the FSCA will not tolerate unlicensed insurance operations and that this undertaking sends a clear message that directors are personally responsible for compliance with financial sector laws.
The directors admitted full knowledge and involvement in the contraventions. Lomas stated that they acknowledge their actions were wrong and that they take full responsibility. He said their priority now is to ensure that all clients are placed with a legitimate insurer and that no further risk is posed to them.
Sobekete confirmed that they cooperated fully with the FSCA and have worked to rectify the situation. She said the safety and security of their clients’ policies is their main concern.
Enforceable undertaking to protect clients
As part of the resolution, the FSCA and the directors entered into an enforceable undertaking in terms of the Financial Sector Regulation Act. Under this agreement, the entire client book has been transferred to Fern Funeral Policies, a licensed provider underwritten by Sanlam Life Limited, and the transfer became effective from 1 September 2025.
If Uzuko Funeral Services resumes operations in the future, all representatives must be registered with an authorised financial services provider. The directors have also agreed that all clients’ insurance business must always be placed with a licensed insurer, ensuring ongoing compliance and protection for policyholders.
Van Deventer emphasised that the enforceable undertaking ensures that clients’ interests are immediately protected and that future operations comply fully with the law. He said the transfer to an authorised provider removes any risk of unlicensed policies.
Consequences of non-compliance
Uzuko Funeral Services, along with Lomas and Sobekete, said they understand that any breach of this undertaking could have serious consequences. This may include joint and several administrative penalties. The directors could also face debarment, which would prevent them from acting as financial services providers in the future. Furthermore, additional orders may be issued against them by the Financial Services Tribunal if they fail to comply with the terms of the undertaking.
Van Deventer stated that non-compliance will be met with the full force of the law, and that directors must understand they cannot evade their obligations under financial sector legislation.
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