On 14th March 2022, CFTC commenced investigations against Old Mutual Life Assurance Company on allegations of misleading conduct; and unconscionable conduct.
The Complainant submitted that he bought a policy from the Respondent in 2010 which was expected to mature in 2020. He further alleged that as of March 2021, he had invested a total sum of MK9,801,430.00.
The Complainant also submitted that he made three part withdrawals totaling to MK4,968,000.00; and received about MK2,288,000.00 as the final fund value despite his expectation to receive a benefit of about K15,233,180.00 as per agreement, and a further upward adjustment of the fund value as a reflection of the depreciation of the Malawi Kwacha. In total, the Complainant received a sum of MK7,256,000.00 which is far lower than the nominal amount invested/saved (MK9,801,430.00). When the Complainant approached the Respondent for redress, he was not assisted. The Commission found that there were incorrect deductions that had been made and that a refund was only made to the customer following the Commission’s interventions and not when the Complainant approached the Respondent on the same.
Following deliberations, the Commission thus found the Respondent liable and issued the following orders:
- That the Respondent should pay a fine of K500, 000.00 for engaging in unconscionable conduct.
- That the Respondent should Cease and Desist from engaging in unconscionable conduct.