The Financial Services Tribunal has upheld the debarment of Lucia Ashler Mahlangu, a former representative at Old Mutual Personal Finance Advisory.
The decision, delivered on 6 May 2025, confirmed that Mahlangu’s application for reconsideration was not only submitted past the deadline but also lacked adequate justification for the delay.
The matter stems from allegations of dishonesty and fraud, leading to Mahlangu’s debarment on 17 September 2024. An internal investigation revealed she had submitted a fraudulent application for a disability cover policy.
While the client’s correct banking details were used, an incorrect cellphone number was listed, and the consent form contained a forged signature. Furthermore, the client had never authorised the policy, prompting her formal complaint against Mahlangu.
Disciplinary proceedings and tribunal review
Following an internal audit at Old Mutual, the client presented evidence, including her bank statement and a record of intimidating phone calls from Mahlangu and her mother, urging her to withdraw the complaint. Mahlangu was accused of falsifying client consent, violating provisions of the Financial Advisory and Intermediary Services (FAIS) Act.
Although she acknowledged her role in opening the policy, she claimed it was done with the client’s consent via USSD and WhatsApp messages, assertions she failed to substantiate with evidence.
The tribunal emphasised that Mahlangu’s late reconsideration application, submitted approximately one month overdue, did not contain credible reasons for failing to meet the 60-day deadline set forth in Section 230 of the Financial Sector Regulation Act. Given her weak prospects of success, the tribunal dismissed her plea for condonation.
Given the overwhelming evidence against Mahlangu, including confirmed forgery and intimidation allegations, the tribunal found a favorable outcome for her reconsideration implausible.
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