Johannesburg, 9 April 2026
Deneys welcomed the successful outcome in the Gauteng High Court judgment of Elasah Risk Consultants (Pty) Ltd v National Credit Regulator and Others, delivered on 23 March 2026, in which Deneys acted as attorneys of record for the Financial Sector Conduct Authority (FSCA).
The court interdicted Fusion Guarantees (Pty) Ltd from issuing its self-styled construction guarantees and declared that the guarantees constitute unlawful non-life insurance business under the Insurance Act 18 of 2017, dismissing an application by Fusion Guarantees and Elasah Risk Consultants (Pty) Ltd claiming the contrary.
Key Findings
- The construction guarantees in question exhibit all the defining characteristics of non-life insurance. The argument that they constitute credit agreements under the National Credit Act was rejected by the court.
- The court granted the FSCA's application declaring the guarantees non-life insurance policies issued in breach of section 5(1) of the Insurance Act and interdicted Fusion Guarantees from issuing further guarantees. Costs were awarded against both Fusion Guarantees and Elasah Risk Consultants.
- The judgment endorsed previous decisions in Becker (2017) and Fern Finance (2022), confirming that the National Credit Act does not exclude the application of insurance legislation.
- The judgment affirms an important principle: where contracts exhibit the substance and characteristics of insurance, they fall within the regulatory framework of the Insurance Act, regardless of how they may be labelled.
Significance
The judgment is a significant victory for insurance regulation in South Africa, reinforcing that insurance must be provided by prudently regulated insurers whose market conduct is governed by a well-established legal framework. The decision provides important regulatory clarity for the insurance sector and for businesses operating in adjacent markets where the classification of financial products is contested.
Deneys Team
The Deneys team acting as attorneys of record for the FSCA was led by Donald Dinnie, with key support from Boitumelo Phillips, Jessica Blunden and William Hayne.
We remain committed to the highest standards of professionalism and to advancing the proper administration of justice. Our role as attorneys of record for the Financial Sector Conduct Authority reflects that commitment, and we are confident that the outcome serves the interests of regulatory clarity and the protection of the public.
Media Enquiries
Cherisse Rao
Chief Marketing Officer, Deneys
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