How a Clientèle Life Employee Was Debarred for Misleading a Client About a Funeral Policy

A former Clientèle Life insurance representative has been debarred after dishonestly presenting a funeral policy as a loan to a client. The Financial Service Tribunal (FST) dismissed his appeal, affirming that he had acted dishonestly and no longer met the requirements of the Financial Advisory and Intermediary Services (FAIS) Act.

Themba Mathebula, who joined Clientèle Life in November 2022, was accused of unethical sales practices after he activated a funeral policy without the client’s clear understanding.

A call transcript from September 2024 revealed that the client had applied for a loan through Clientèle’s Super Compare website. However, when contacted by Mathebula, she was led to believe she had qualified for financial assistance of up to R100,000. When she inquired about repayment terms, Mathebula vaguely responded, “As long as you are covered with us, as long as it is active, and it does not lapse.”

At no point did he clarify that the offer was for a funeral policy, not a loan. The insurer found that he rushed through the script and failed to provide essential details about the product, resulting in the client unknowingly committing to the policy.

When the client realized the deductions from her account were for a funeral policy rather than a loan, she demanded immediate cancellation.

Mathebula was informed of an impending debarment hearing in October 2024. However, he failed to attend, and the hearing proceeded in his absence. He was subsequently debarred after being found guilty of dishonesty.

Challenging the ruling, Mathebula appealed to the Financial Service Tribunal, claiming he was unaware of the hearing due to a phone theft in September 2024, which resulted in him changing his number. He argued that his employer had failed to contact him on the new number.

Despite his defense, Clientèle Life presented compelling evidence against him. The company revealed that Mathebula had previously received a final written warning in March 2024 for similar misconduct, where he promised to adhere to sales guidelines. Additionally, internal emails from August and September 2024 showed that he had repeatedly failed to follow the proper script when dealing with clients.

The FST ruled that Mathebula had ample prior warnings about misleading clients. The judgment noted that he should have recognized the client’s confusion when she asked about repayment terms and appeared surprised when asked to nominate a beneficiary. Instead of clarifying the nature of the policy, he allowed the misunderstanding to persist.

“The applicant failed in his duty to convey factually correct information,” the ruling stated. The tribunal upheld Clientèle Life’s decision, concluding that Mathebula’s actions demonstrated a lack of honesty in providing financial services.

His appeal for reconsideration was dismissed, solidifying his debarment from working in the financial services sector.

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