FSCA Warns Against 14 Unauthorized Companies or Individuals

The Financial Sector Conduct Authority (FSCA) recently warned the public to be cautious when conducting financial services related business with 14 new firms or individuals that are soliciting customers in South Africa jurisdiction without any licenses or are false authorized companies.

1. Forex Breakout Kings

The FSCA has received information that FBK and Mr Michaels offer to trade in forex on behalf of members of the public. Without commenting on the business of Forex Breakout Kings (FBK) and/or Mr Michaels, the FSCA points out that entities offering to trade in financial products on behalf of South African citizens are required to be licensed by the FSCA.

The FSCA wishes to inform the public that FBK and Mr Michaels are not authorised to give any financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (the FAIS Act).

2. Spring Finance

It has come to the attention of the FSCA, that Spring Finance is fraudulently presenting itself to be a financial services provider using FSP No: 54678. According to the records of the FSCA, FSP No: 54678 does not exist. The FSCA wishes to inform the public that Spring Finance is not authorised as an FSP in terms of the Financial Advisory and Intermediary Services Act (FAIS) to provide financial advisory and intermediary services.

According to its website, Spring Finance is also a registered credit provider (NCR CP 4578) offering loans to clients. However, according to the National Credit Regulator’s (NCR) website, Spring Finance is not registered a registered credit provider.

3. IQ OPTION LLC

The FSCA received information that South African clients of IQ OPTION LLC, in their capacity as “affiliates”, conduct advertising on behalf of IQ OPTION LLC in South Africa. It seems that IQ OPTION LLC pays these clients a portion of the profit earned by traders, on the accounts they refer to IQ OPTION LLC.

IQ OPTION LLC is an international online trading platform, offering trading software which enables users to trade in Forex, Stocks, Cryptocurrencies, Commodities and ETFs.

IQ OPTION LLC has no physical presence in South Africa and conducts no marketing or advertising on its own behalf. IQ OPTION LLC is not authorised to provide Financial Advisory and Intermediary Services in South Africa.

Without commenting on the business of IQ OPTION LLC, or their products and services, the FSCA points out that entities offering to trade in financial products on behalf of South African citizens are required to be licensed by the FSCA.

4. Individuals impersonating the International Capital Markets Pty Ltd

The FSCA warned the public against doing any financial services related business with a group of individuals that are impersonating the International Capital Markets Pty Ltd (IC Markets) brand to defraud unsuspecting financial customers.

It has come to the attention of the FSCA that these individuals target their victims on WhatsApp and FACEBOOK social media platforms:

https://www.facebook.com/people/IC‐Platform/100081463665287/

https://www.facebook.com/people/IC‐Platform/100081463665287/

https://www.facebook.com/shirinda.douglas.5,falsely claiming to be agents or representatives of the IC Markets, which is an authorised financial services provider (FSP number 50715).

These individuals impersonate the representatives of IC Markets to get investment funds from individuals seeking trading opportunities and profits. The impersonators used the following email addresses amongst others to solicit funds from the public icmarketfxtrading@gmail.com and icmarketsinvester127@gmail.com

IC Markets confirmed they are not associated with the impersonators and that these scammers are using their brand name, logos and trademark without permission to offer investment opportunities and dupe the public.

5. Kranken FX

The FSCA warned the public to act with caution when conducting financial services related business with Kranken FX.

It has come to the attention of the FSCA that Kranken FX, claims on its website (https://krankenfxtrade.com/) to be regulated by the FSCA. Kranken FX is not authorised in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act), to render financial advice and intermediary services.

6. Luan Krige

The FSCA warned the public to act with caution when Conducting any financial services related business with Luan Krige (Mr Krige), who is currently based in Pretoria.

The FSCA has received information that Mr Krige might be rendering financial services to members of the public by trading in forex and cryptocurrencies on their behalf. The FSCA points out that, for a person to offer forex and cryptocurrency trading in South Africa, they must be licensed to do so by the FSCA.

The FSCA wishes to inform the public that Mr Krige is not authorised to give any financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act).

7. Individuals impersonating Nesa Capital (Pty) Ltd

The FSCA warned the public to be cautious when dealing with Nesa Capital Holdings.

The FSCA received a complaint from Nesa Capital (Pty) Ltd, a licensed Financial Services Provider (FSP number 45930), that Nesa Capital Holdings might be rendering financial services to members of the public, under the pretext of being associated to it. Nesa Capital (Pty) Ltd has denied any relationship with Nesa Capital Holdings.

The FSCA points out that, for a person to offer financial services in South Africa, they must be licensed to do so by the FSCA. Nesa Capital Holdings is not authorised to give any financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act).

8. Serene Financial Services

The FSCA warned the public against doing any financial services related business with Serene Financial Services (Serene). Serene state in their website that they are a juristic representative of Legacy Risk Consult (Pty) Ltd, an authorised Financial Services Provider (FSP Number: 45536). Serene also claims to sell policies which are underwritten by African Unity Life Ltd, an authorised Long-Term insurer.

Serene is neither a juristic representative of Legacy Risk Consult (Pty) Ltd nor authorised as a Financial Services Provider by the FSCA to render financial services to the public.

Legacy Risk Consult (Pty) Ltd has confirmed that Serene is not a juristic representative of theirs.

Furthermore, Serene Financial Services CC, an authorised Financial Services Provider (FSP Number: 51559), has confirmed that it is not associated with Serene and the website www.serenefs.co.za does not belong to them.

9. Dench Investment Solutions (Pty) Ltd

The FSCA warned the public to be cautious when conducting financial services business with Mr Theophilus Mpofu (Mr. Mpofu) and Dench Investment Solutions (Pty) Ltd (Dench Investments).

The FSCA received information that Mr. Mpofu and Dench Investments may be rendering financial services to members of the public by offering to trade in shares on their behalf.

The FSCA also received information that Mr. Mpofu and Dench Investments are misrepresenting themselves to be part of Unum Capital (Pty) Ltd (Unum Capital), an authorised Financial Services Provider (FSP) with FSP number 564. Unum Capital confirmed that it is not connected through any business relationship with Mr. Mpofu and Dench Investments.

A person rendering financial advice or intermediary services in respect of financial products in South Africa must be licensed to do so by the FSCA. The FSCA wishes to inform the public that Mr. Mpofu and Dench Investments are not authorised as FSPs to provide financial advisory and intermediary services.

10. Individuals impersonating Capital International Group Ltd

The FSCA warned the public to be cautious regarding individuals impersonating Capital International Group Ltd on the WhatsApp social media platform, in what appears to be a “clone scam” where a scamming entity assumes the identity of a legitimate business to defraud the public.

The FSCA received a complaint from Capital International Group Ltd, with licensed subsidiaries CILSA Investments (PTY) Ltd (FSP No. 44894) and CILSA Solutions (PTY) Ltd (FSP No. 6650) t/a Capital International SA. The individuals impersonating Capital International Group Ltd are offering investment opportunities on the WhatsApp social media platform with unrealistically high returns.

Capital International Group Ltd have confirmed that they do not conduct any business on the WhatsApp social media platform. The FSCA points out that, for a person to offer financial services in South Africa, they must be licensed to do so by the FSCA.

While Capital International Group Ltd and its subsidiaries are licensed FSPs, the individuals behind Capital International Group Ltd on WhatsApp are not licensed, and are therefore not authorised to give any financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act).

11. Individuals impersonating Integrity Asset Management

The FSCA warned the public against doing any financial services related business with a group of individuals that are impersonating Integrity Asset Management, a legitimate Financial Services Provider (FSP number 43249), with the intention of defrauding unsuspecting members of the public.

It has come to the attention of the FSCA that these individuals solicit investments from members of the public - promising unrealistic and excessive returns on WhatsApp, using Integrity Asset Management’s logo, website, and contact details. They also use the logo of a company based in Texas, United States of America (USA) with a similar name.

Integrity Asset Management has confirmed that they are in no way associated with those individuals. It is the FSCA’s view that these individuals are conducting unregistered financial services business.

12. Individuals impersonating Wealthport (Pty) Ltd

The FSCA warned the public to be cautious when dealing with Wealthport Capital (Pty) Ltd (Wealthport Capital).

The FSCA received a complaint from Wealthport (Pty) Ltd, a licensed Financial Services Provider (FSP No. 44158), that Wealthport Capital may be offering financial services to members of the public, under the pretext of being associated to it. The ‘scammers’ using Wealthport (Pty) Ltd’s name are offering investment opportunities with unrealistically high returns, via the WhatsApp social media platform. Wealthport (Pty) Ltd have confirmed that they do not conduct any business on WhatsApp social media and have denied any relationship with Wealthport Capital.

The FSCA points out that, for a person to offer financial services in South Africa, they must be licensed to do so by the FSCA. While Wealthport is a licensed FSP, Wealthport Capital is not authorised to give any financial advice or render any intermediary services in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act).

13. Datum RS impersonating QuickTrade (Pty) Ltd

The FSCA warned the public to be cautious when conducting any financial services related business with Datum RS.

It has come to the attention of the FSCA that Datum RS is fraudulently presenting itself to be a financial services provider (FSP) and that it is associated with QuickTrade (Pty) Ltd (QuickTrade), which is an authorised FSP with FSP 45262. QuickTrade has denied any association with Datum RS. The FSCA wishes to inform the public that Datum RS is not authorised as a FSP to furnish financial advice and render intermediary services in terms of the Financial Advisory and Intermediary Services (FAIS) Act, 2002.

14. South Afri Capital Company t/a Thembi Shilengee

The FSCA warned the public to be cautious when conducting financial services related business with South Afri Capital Company t/a Thembi Shilengee (SACC).

It has come to the attention of the FSCA, that SACC provided a client with a document purporting to be an FSB license, with Financial Services Provider (FSP) number 41432. According to the records of the FSCA, FSP license 41432 does not exist. The Financial Services Board (FSB) was the previous regulator for financial services in South Africa. This entity ceased to exist in April 2018 once the Financial Sector Regulation Act (FSRA) was promulgated and the FSCA was established. All pre-existing licences were migrated to the FSCA’s purview.”

The FSCA wishes to inform the public that SACC is not authorised as an FSP in terms of the Financial Advisory and Intermediary Services (FAIS) Act to provide financial advisory and intermediary services.