FSB to release Investec report tomorrow

Trade union Solidarity wants Investec investigated

The Financial Services Board (FSB) is expected to release a preliminary report tomorrow on its findings on its investigation into Investec.

Trade union Solidarity wants Investec investigated for allegedly releasing a report challenging official inflation figures in order to make gains on their share prices.

In a report released about two weeks ago, Investec Asset Management argued that if new weightings released by Stats South Africa are used now rather than from next year, inflation figures would be 2% lower than the 10.9% reported.

Executive officer at the FSB, Dube Tshidi, says: “The final outcome of that investigation will be tabled at the Directorate of Market Abuse as per the Security Services Act. The directorate will decide whether they want to take legal action against the people involved. If (they do), the FSB will prepare its own case and submit to the enforcement committee -- made up of independent professionals and chaired by a retired judge.”

The financial services group at the centre of it all strongly refutes Solidarity's allegations. Head of Corporate Affairs at Investec, Carol Mason, says their directors bought the shares before knowing that its Asset Management Unit was compiling the report.

“From an Investec stand point, we would completely refute any suggestion that these two incidences are in any way associated or related ... So it's purely coincidental and it's just unfortunate how this has been interpreted in the market place.”