BLUE FINANCIAL SERVICES LIMITED - Update on regulatory status

Update on regulatory status

BLUE FINANCIAL SERVICES LIMITED
Incorporated in the Republic of South Africa
Registration Number: 1996/006595/06
JSE Code: BFS
ISIN: ZAE000083655
("Blue" or "the Company" or “the Group”)

UPDATE ON REGULATORY STATUS OF BLUE

  1. Background:

  Shareholders are referred to the detailed announcement
  published on the Stock Exchange News Services (“SENS”) of
  the JSE Limited (“JSE”) dated the 1st of April 2014 as well
  as the SENS announcement dated the 31st of October 2013. In
  light of recent publications in the press, the contents of
  which has the potential to mislead stakeholders of Blue, the
  Company deemed it necessary to provide an update in respect
  of its operations both in South Africa and in Africa.



  Blue Financial Services Ltd, through its subsidiaries, is
  currently trading in Ghana, Uganda, Kenya, Malawi, Zambia,
  Tanzania, Namibia, Botswana, and Swaziland, providing
  unsecured lending to its customers. In South Africa, Blue
  Financial Services (South Africa) (Pty) Ltd’s (“Blue South
  Africa”), a wholly owned subsidiary of Blue Financial
  Services Ltd,   ceased offering unsecured lending products
  during October 2013 for reasons as set out in the SENS
  announcement dated 31st of October 2013 and has restructured
  its business to focus upon asset rehabilitation.



  2. Blue South Africa:


  On the 1st of April 2014 the FSB withdrew Blue South
  Africa’s authorisation to act as a financial services
  provider in relation to Blue South Africa being able to
  offer insurance products linked to any unsecured lending
  products provided to its customers in South Africa. This
  follows on the suspension of Blue South Africa authorisation
  in October 2013 which was due to Blue South Africa failing
  to furnish the FSB with its Annual Financial Statements for
  the years ending February 2012 and February 2013. Since the
  suspension of its authorization, Blue South Africa has not
  collected the insurance premiums owing to it due in terms of
  the credit life insurance and home owners insurance cover
  which forms part of its unsecured lending products sold to
  its customers in South Africa.



  The effect of the withdrawal of Blue South Africa’s
  authorisation to act as a financial services provider on the
  business of Blue South Africa is that it may no longer
  collect the insurance premiums due under the credit life
  insurance and home owners insurance cover forming part of
  the unsecured lending products sold to its customers. The
  withdrawal of the authorisation as mentioned herein above
  does not affect Blue South Africa’s registration as a credit
  provider with the National Credit Regulator nor does it
  impact on its right to continue collecting the instalments
  due in respect of the credit agreements concluded with its
  customers, and as such Blue South Africa will continue to
  conduct its business as a asset rehabilitation entity. Blue
  South Africa is taking all necessary steps in terms of the
  instructions of the Financial Services Board to advise the
  relevant third party services providers and its customers of
  the withdrawal of its authorization to provide insurance
  products.

  The withdrawal of Blue South Africa authorisation to act as
  a financial services provider (as it pertains to the
  offering of insurance products) does not affect the overall
  business activities of Blue Financial Services Ltd nor the
  business activities of its subsidiaries in other
  geographical jurisdictions in Africa which entities are
  continuing to provide unsecured lending to their respective
  customers.


Designated Advisor
Grindrod Bank Limited


Randburg
30 April 2014

Date: 30/04/2014 05:20:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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