Despite being warned by the FSCA almost daily in the media, consumers still fall for scammers who offer unreachable high interest rates on investments.
The Financial Sector Conduct Authority (FSCA) has fined two people involved in unauthorised forex trading a combined R2.1 million and debarred them for 20 years.
It concluded its investigation into the conduct of Chantelle Kleynhans and Pieter Willem van der Walt. The authority imposed an administrative penalty of R1 550 000 on Kleynhans and debarred her for 20 years. The FSCA also imposed an administrative penalty of R550 000 on Van der Walt and debarred him for 20 years as well.
The FSCA said in a statement that its investigation found that Kleynhans and Van der Walt solicited deposits from members of the public with the promise of trading in forex on their behalf. However, the FSCA established that they contravened section 7(1) of the Financial Advisory and Intermediary Services Act by rendering financial services without the necessary authorisation.
The Authority says it will refer its investigation report to the South African Police Service (Saps) for further investigation and will provide assistance to the police if requested.
ALSO READ: FSCA debars financial adviser for five years, fines him R1.1 million
FSCA warns consumers against unregistered forex dealers
The FSCA again warned consumers to avoid unnecessary risk and advised them not to accept financial advice, assistance, or investment offers from individuals or entities not authorised by the FSCA.
“Authorised financial services providers are required to clearly display their authorisation status in their documentation. Where this is absent, we encourage consumers to verify authorisation directly with the FSCA before making any payments.
“Consumers are strongly urged to exercise caution when considering investment or trading offers, particularly those made via social media or that they receive unsolicited,” the FSCA says.
To verify whether someone or an entity is authorised to provide financial products, services, or advice, consumers can contact the FSCA using one of these methods:
- Confirm that the entity or individual is authorised by the FSCA to offer financial products and services, including investment advice.
- Check what category of advice the person is registered to provide. Some may only be authorised for basic, low-risk products but promote complex or high-risk investments.
- Ensure that the FSP number used matches the name listed on the FSCA’s official database.
ALSO READ: FSCA fines funeral home R11.4 million and debars owners for decades
Where to check if someone or a company is registered
You can use one of these methods to confirm the status and FSP number of a service provider or someone who claims to be an authorised service provider:
- Call the FSCA’s toll-free number: 0800 110 443.
- Conduct an online search for authorised financial institutions by licence and product category at: https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-Entities-Persons.aspx.
- Conduct an online search for a financial institution that is an authorised financial services provider in terms of the Financial Advisory and Intermediary Services Act at: https://www.fsca.co.za/Fais/Search_FSP.htm.