The Western Cape High Court has granted a sweeping interdict against a former Nedbank financial planner, finding that he unlawfully used confidential client information, misrepresented his association with the bank and solicited its clients after his dismissal.
In a judgment delivered on October 27, Judge Nobahle Mangcu-Lockwood ordered former advisor Deon Smit to cease using or retaining Nedbank client information, surrender all records containing protected information and permanently delete such data from personal devices and online storage platforms.
The court also ordered Smit to pay Nedbank’s legal costs.
Complaints triggered court action
The case arose after Nedbank approached the court seeking an interdict based on unlawful competition and the misappropriation of personal and confidential client information.
According to the judgment, Smit worked for Nedbank as a financial planner from February 2009 until his dismissal in December 2022 for dishonest conduct.
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Following a period at another financial-services firm, where he was later debarred for similar misconduct involving the alteration of client documents, he resurfaced in July 2024 as a representative of Equi Pro Wealth.
The bank told the court that it began receiving numerous complaints from clients shortly afterwards.
Clients reported being approached
The court heard that clients complained of being contacted through telephone calls, emails, WhatsApp messages and in-person meetings.
According to the judgment, clients alleged that Smit suggested he remained associated with Nedbank, told them their investments required review or were underperforming, and encouraged them to move funds to products offered through his new employer.
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Some clients also reported receiving pre-populated forms containing their personal and investment information.
Judge Mangcu-Lockwood said a recurring feature of the complaints was confusion among clients over whether Smit still represented Nedbank.
Admissions weighed against Smit
The court placed significant weight on Smit’s own admissions.
The judgment notes that he admitted contacting former Nedbank clients, discussing their investments, advising them to move funds and seeking new mandates from them.
He also admitted sending communications to Nedbank clients and discussing the performance of Nedbank investment products.
The court found that these admissions alone established breaches of confidentiality and non-solicitation provisions contained in his employment contract.
POPIA and privacy rights central
A major aspect of the judgment centred on the Protection of Personal Information Act (POPIA).
The court found that information allegedly used by Smit included client names, identification details, telephone numbers, email addresses, physical addresses, investment information and financial histories.
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Judge Mangcu-Lockwood held that such information fell squarely within POPIA’s definition of personal information and was subject to strict legal protections.
The judge stated that the conduct demonstrated “a disregard for other people’s right to privacy” protected by the Constitution.
Court rejects defence
Smit argued that he had retained much of the information in his memory and challenged some of the complaints as hearsay.
However, the court found the evidence showed he possessed actual client records and documents that originated from Nedbank.
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In one example highlighted in the judgement, Smit allegedly sent a client a Nedbank-generated statement dated April 2023 despite no longer being employed by the bank and lacking authority to access or use such information.
The court also rejected suggestions that complaints had been manufactured or encouraged by Nedbank officials.
Judge Mangcu-Lockwood found that the complaints reflected a clear and consistent pattern of conduct that Smit had failed to meaningfully refute.
Vulnerable clients targeted
The judgment expressed particular concern about the impact of Smit’s conduct on vulnerable clients.
The court noted one instance involving an elderly woman living under curatorship in a care facility.
“There is no doubt that the public needs to be protected from the respondent’s conduct,” the judge stated.
The court further found that there was “not one instance in the record” showing that Smit’s approaches to Nedbank clients had been welcomed.
Extensive restrictions imposed
Under the order, Smit is prohibited from representing that he is employed by, affiliated with or authorised by Nedbank, although he may state that he was formerly employed by the bank.
He is further barred from retaining, copying, transmitting, disclosing or using any non-public Nedbank client information to market financial products or obtain investment mandates.
The court ordered him to return all physical documents containing protected information within 10 days and permanently delete electronic copies from personal devices, email accounts, messaging applications and cloud-storage services.
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Within 15 days, he must also file an affidavit confirming compliance and identifying any information retained, the legal basis for retaining it and the period for which it will be kept.
Judge Mangcu-Lockwood concluded that Nedbank had established a clear legal right to protect its clients’ information and that ongoing harm was occurring through the respondent’s continued conduct.
The court held that no adequate alternative remedy existed, noting that cease-and-desist letters, client warnings and referrals to the Financial Sector Conduct Authority had failed to stop the conduct, making judicial intervention necessary.
- The Western Cape High Court granted an interdict against former Nedbank financial planner Deon Smit, ordering him to cease using confidential client information and misleading clients about his association with Nedbank.
- Smit was dismissed by Nedbank in December 2022 for dishonest conduct and later debarred from another financial services firm for similar misconduct before resurfacing in July 2024 with Equi Pro Wealth.
- Clients complained that Smit contacted them using Nedbank client information, suggested he was still affiliated with Nedbank, and encouraged them to transfer investments to his new employer.
- The court found Smit breached confidentiality and non-solicitation provisions, violated the Protection of Personal Information Act (POPIA), and failed to refute consistent client complaints.
- The court ordered Smit to return all physical and electronic Nedbank client information within 10 days, delete electronic copies, file an affidavit of compliance within 15 days, and pay Nedbank's legal costs.
