Old Mutual is deeply concerned at the outcome of the court judgment handed down on 12 July in the Gauteng High Court in favour of Living Hands Umbrella Trust. Following consultation with our legal team, we can confirm that it has been formally agreed to lodge an application to appeal. Despite the court ruling, we believe that our actions were in accordance with regulations, and we are confident that we followed due process.

Quite apart from Old Mutual, the direct cause of the loss and pain suffered was the fraudulent actions of Fidentia well after Old Mutual had transferred funds following a formal client instruction to do so. In the circumstances and following our verification of the authenticity of the transfer of ownership, we were legally obligated and had no other option but to transfer the money.

We are of the view that there are reasonable prospects that another court would come to a different conclusion. We are also concerned about the precedent which the High Court sets for the rest of the financial services industry as it relates to managing funds on behalf of trustees. This is an additional compelling reason for Old Mutual to seek leave to appeal against the High Court judgment. It is important to note that the facts of the case are not in dispute.

We understand the need for someone to be held accountable, but we are resolute that Old Mutual is not liable for the damages being claimed.

As a responsible business that always acts in the best interests of our clients, we have continued to focus on ensuring good governance, whilst strengthening our processes with increased focus on the environment, communities, and social welfare.

Our next steps are being governed by what is in the best interests of governance, our stakeholders, and our clients.