In a stark reminder of the importance of regulatory compliance, the Financial Sector Conduct Authority (FSCA) has imposed severe penalties on Sanda Funeral Home (Pty) Ltd and its directors for offering life insurance policies without the necessary licenses.
Following multiple complaints, the FSCA launched an investigation into Sanda Funeral and its directors, Ms Zisanda Sanda and Mr Sandile Michael Sanda. The investigation revealed that the business was operating in breach of both the Financial Advisory and Intermediary Services Act (FAIS Act) and the Insurance Act by issuing funeral insurance policies without proper authorisation.
Operating from branches across the Eastern and Western Cape—including Kariega, Port Elizabeth, Cape Town, and others—Sanda Funeral collected monthly premiums from clients in exchange for funeral services upon the death of an insured person. However, this model was functioning without the necessary regulatory approvals, putting policyholders at significant financial risk.
As a result, the FSCA imposed:
- A R11.5 million administrative penalty on Sanda Funeral Home;
- A 20-year debarment for Ms Zisanda Sanda; and
- A 10-year debarment for Mr Sandile Michael Sanda.
Both directors are now prohibited from providing or being involved in any financial services, including acting as key persons in financial institutions or offering outsourced financial services.
Why It Matters for the Industry
At easiPol, we believe in raising awareness around compliance in the funeral and insurance sectors. This case serves as a critical warning to consumers and service providers alike:
- Consumers should always verify that a provider is registered and authorised before entering into any financial agreement.
- Funeral administrators and intermediaries must ensure they are fully compliant with FSCA regulations to protect their clients and avoid reputational and financial damage.
This case reaffirms the FSCA’s ongoing commitment to consumer protection and regulatory enforcement. It also highlights the value of working with trusted partners, like easiPol, who offer transparent, compliant, and integrated business management solutions for funeral administrators
