In the video Green discusses the Brite Advisors scandal, deVere’s new extensive investment operation in Mauritius and hits back at critics as he steadfastly defends the company’s track record on best practice and international advice.

Please subscribe and sign up on II using this link to be able to view one of the must-watch videos of the year.

Part one is premiered on II on Tuesday June 4 at 9am. Part two will be revealed the following day at the same time Wednesday June 5 at 9am, exclusively for II and IA readers.

Tensions in the Middle East and North Africa have led oil prices to approach $79 a barrel for Brent Crude and around $73 for West Texas Intermediate, which Green warned will have broader economic implications on individual sectors within investor’s portfolios.

“Global investors need to take seriously the volatility in oil prices due to their direct influence on inflation, as rising oil prices can lead to increased production costs across various industries, affecting corporate profitability and economic growth,” Green said.

“Additionally, oil price fluctuations can create market volatility, influencing the performance of energy-related stocks and sectors, making it crucial for investors to monitor and perhaps adjust their portfolios in response to these changes,” he added.

Given that tensions in the Middle East introduce geopolitical risks that can significantly impact market sentiment, Green said investors often respond by reassessing risk tolerance and adjusting asset allocations.

“Safe haven assets, such as gold and government bonds, could experience increased demand as investors seek refuge from market volatility,” he said.

In terms of equity exposure, Green noted currency fluctuations and emerging market vulnerabilities will also be in sharp focus.

“Rising oil prices can contribute to currency fluctuations, particularly affecting economies heavily dependent on oil exports,” he said.

“For investors with exposure to emerging markets, currency devaluations may pose risks to their portfolios,” he added. “Countries with large external debt denominated in foreign currencies may face challenges servicing their debt obligations, potentially impacting the performance of assets tied to these economies.”

However, while the Tribunal has the authority to ‘set aside’ the penalty decision, it “does not have the same competence in relation to the debarment order”, according to the decision document. As such, the “debarment ‘matter’ is remitted to the Authority” to reconsider.

Green’s case formed part of a broader investigation by the country’s Financial Sector Conduct Authority (FSCA) into DeVere Investments South Africa and DeVere SA Acuma between February 2010 and August 2015.  

The core issue related to the marketing of foreign collective investments schemes that the regulator said were not approved by the Registrar of Collective Investments Schemes. 

The companies, which were sold to Brite Advisors in November 2019, were fined ZAR 10m after being found to have “contravened various financial sector laws”.

In light of his role as a director of the businesses, the FSCA concluded Green ‘caused or permitted the contraventions’.  

When the initial decision was announced in May 2022, a spokesperson for DeVere said they were “shocked and disappointed” and confirmed an appeal would be lodged.

Section A or B?

At the Tribunal, Green’s representative argued that the South African regulator had acted without regard to the facts of the law and that his client had not broken the law.

There was some confusion relating to the specific charges levelled at Green, with the FSCA citing section 2(a) of the Financial Institutions (Protection of Funds) Act in its initial correspondence with the DeVere Group chief executive in 2019, but later admitted it should have referenced section 2(b).

Section 2 states a financial insitution or director ‘who invests, holds, keeps in safe custody, controls, administers or alienates any funds of the financial institution or any trust property –

(a) must, with regard to such funds, observe the utmost good faith and exercise proper care and diligence;

(b) must, with regard to the trust property and the terms of the instrument or agreement by which the trust of agency in questions has been created, observe the utmost good faith and exercise the care and diligence required of a trustee in the exercise or discharge of his or her powers and duties’.

Presiding over the tribunal, judge Harms concluded, without stating a specific clause, that Green ‘did not contravene section 2 of the Financial Institutions (Protection of Funds) Act, during the period he had been a director of DeVere SA’.

According to the decision document, Green’s representative also argued that the FSCA did not have jurisdiction to impose any administrative penalty on or take any other administrative action against him because he was not living in the jurisdiction of the court.  

The Tribunal agreed: “We do not believe that Mr Green’s assistance with the investigation and submitting to a summons to give evidence and giving evidence already during 2016 on a general compliance topic of DeVere SA amounted to his personal submission to jurisdiction for purposes of the imposition of administrative penalties and action.”  

‘Failing to understand its own laws’

Following the publication of the Tribunal’s decision, Green said: “All accusations and charges that were made against me in South Africa by the regulator have been dropped. The file is now closed. Whilst we were surprised by the FSCA’s initial decision, we are not surprised by the Tribunal’s ruling. 

“It’s clear that the case was overturned on the basis of both factual inaccuracies in the FSCA’s case against me and an incorrect application of laws. 

“As per the Tribunal’s final ruling, it was found that I did not contravene the law and, therefore, that regulator was wrong to consider any action against me.” 

He continued: “In addition, the FSCA was criticised by the judge at the Tribunal for changing the alleged offences of which I was accused on several occasions – even up to two weeks before the case was heard – and for failing to understand its own laws. By doing this, the regulator was shown to be on a mission to discredit me, come what may.” 

Green added: “The Tribunal has come to the only sensible decision. In this case, the South African financial regulator appears to have lost the objectivity and impartiality expected of a public body discharging a public function.” 

It follows an investigation which found that Brite Advisors – formerly known as DeVere Investment South Africa and DeVere SA Acuma – “contravened various financial sector laws” between February 2010 and August 2015.

Given that the businesses were sold in November 2019, Brite refers to the former DeVere entities.

The FSCA said, having considered representations from Brite, it “decided to impose an administrative penalty of ZAR 10m” and has withdrawn Brite’s financial services provider (FSP) licence.

The watchdog added that its investigation “also revealed that Mr Green was a director of [the company] from 2008 until 2015 and in his capacity as a director, he caused and/or permitted the contraventions”.

The FSCA said it found “Green contravened/failed to comply with various financial sector laws which impacts on his fitness and propriety”.

Having considered representations from Green, it decided to impose an administrative penalty of ZAR 2.5m and “debar [him] for a period of five years”.

A spokesperson from DeVere told International Adviser: “We are shocked and disappointed by the South African regulator’s decision. It appears that, unfortunately, the regulator has chosen to ignore obvious, unambiguous and crucial facts relevant to this case.

“We will be appealing this decision and are confident that the Financial Services Tribunal will recognise the abundance of evidence in support of Mr Green’s position.”

Andre Vorster, chief executive of Brite Advisors South Africa, told International Adviser: “The order was issued by the FSCA, in respect of FSP 23719, previously held by DeVere Acuma and now held by Brite Advisors South Africa (Pty) Ltd. The order is based on the findings of the investigations of the authority, regarding alleged contraventions by DeVere Acuma, through their business conduct during the period of 2010 to 2016.”

He added: “The executive team of Brite Advisors, assisted by its legal team, are dealing with the matter in an appropriate manner. We request clients not to be alarmed as this will not have any impact on their investments with the relevant product providers. We believe the matter will be concluded soon.”

Vorster added that advisers and clients will be “kept informed as we progress to the final solution” with a formal update due to be published soon.

“Further to that, Brite Advisors South Africa is dealing with the matter appropriately to ensure no material interruption of the South African business.

“The immediate step would be to make contact with both the Regulator and the Financial Services Tribunal as allowed for in terms of the relevant legislation, more specifically in terms of section 230 of the Financial Sector Regulation Act 9 of 2017, in order to agree on the best way to conclude the matter.”

Coreen Kooy has a long-standing complaint about a policy she was sold by a DeVere financial adviser. She says she agreed to a 14-year savings plan for her daughter’s education but was instead tied into a 25-year whole-of-life insurance policy.

But it is not the mis-selling allegations or even the interdict that resulted in her spending time in jail last Tuesday.

Kooy had been seated in court when the police asked her to step outside, where she was subsequently arrested for cyberbullying, her lawyer Diana Kawenda told International Adviser.

Kawenda said she was unable to accompany Kooy to the police station as “we still had to appear before the judge”. But the cyberbullying claim “never saw the light of day”, Kawenda said, as the “prosecution declined to prosecute”.

“Based on the facts that they had, they could not conjure up a probative case against Coreen. Nigel Green had given a power of attorney to his lawyer, Philippa Philips, to act for and on his behalf as the complainant. But the prosecutors decided that that would not be evidence that meets the burden of proof in criminal law, here in Zimbabwe.”

Kooy was released on Tuesday 24 May 2022.

As it stands, the interdict and original mis-selling complaint are understood to be ongoing, but it is not clear at this point the status of the cyberbullying allegations.

International Adviser reached out to DeVere Group but a spokesperson for the company declined to comment.

Kawenda believes that the best course of action is to “virgorously pursue” the underlying claim because it will “bring finality to all other ancillary issues”.

‘Time to take legal action’

Kooy is a member of a Facebook community called ‘Financial Ruin by deVere Advisors in all corners of the world’. Its members share stories of negative experiences with the firm’s advisers.

The group, which currently has 452 members, was the subject of an International Adviser story from December 2021, when Green posted a message complaining about the personal abuse he was receiving.

He wrote: “Ex clients of deVere Zimbabwe and deVere France plus others who are not even clients or ex clients, have posted negative remarks against me personally on average 7 times a day.”

Green rejected the accusations and denied involvement in the two respective regional businesses, stating that he is “a shareholder” only.

He concluded with: “I have been patient, but now have to take legal action. The damage is substantial and easy to prove.”