FSCA Warns Against 6 Unauthorized Companies or Individuals

The Financial Sector Conduct Authority (FSCA) last week warned the public to be cautious when conducting financial services related business with 6 new firms or individuals that are soliciting customers in South Africa jurisdiction without any licenses or are false authorized companies.

1. Aluma Capital (Pty) Ltd

FSCA would like to warn the public about a WhatsApp group on social media using the name Aluma Private Equity Fund 2, which is similar to Aluma Capital (Pty) Ltd, a licensed Financial Services Provider (FSP number 46449).

The individuals behind the WhatsApp group are not authorised in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act), to render any financial advice and intermediary services. The WhatsApp group is advertising the scheme to vulnerable clients promising unrealistic and high returns, impersonating Aluma Capital (Pty) Ltd in the process.

The administrators of the WhatsApp group use the following contact numbers:

• Mobile number 065 201 6845;

• Mobile number 068 240 3156; and

• Mobile number 074 358 5338 registered in the name of Kevin Fraud as per true caller.

Aluma Capital (Pty) Ltd (FSP number 46449) has confirmed that it is in no way associated with the WhatsApp group.

2. AVA Invest Inc, AVAINVESTMGOAL (AVA Invest) and "Gugu Mseleku"

The FSCA received information that AVA Invest is purporting to be regulated by the FSCA with FSP No. 45984. The FSCA’s records reflect that FSP No. 45984 belongs to Ava Capital Markets (Pty) Ltd, t/a Ava Trade (Ava Trade Capital), an authorised financial services provider.

Ava Trade Capital advised that they have no relationship with AVA Invest. The FSCA also received information that a person by the name of "Gugu Mseleku" is using the Facebook platform to lure people to invest with AVA Invest: http://ow.ly/7RZ850MHAkC.

AVA Invest and "Gugu Mseleku" are not authorised in terms of the Financial Advisory and Intermediary Services Act, 2002 (FAIS Act), to render any financial advice and intermediary services.

3. Prudential Investment Services CC

The FSCA has received information that may indicate that Prudential Investment Services is conducting unauthorised financial services.

According to information received, Prudential Investment Services solicits investments from members of the public with the promise of unrealistic returns. On its Facebook page, Prudential Investment Services offers financial advice and intermediary services in respect of life insurance, retirement plans, bitcoin, forex, and shares.

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 Prudential Investment Services is not authorised as a financial services provider to provide financial advisory and intermediary services.

4. Capital Pro Trade Ltd

It has come to the attention of the FSCA that Capital Pro is offering the South African public access to its online platform to trade in forex and contracts for difference (CFDs). 

In addition, Capital Pro provided a client with a document purporting to be an FSCA license issued to it, with Financial Services Provider (FSP) number 164384. According to the records of the FSCA, FSP license 164384 does not exist.

For a company to offer financial services relating to forex and CFDs in South Africa, it must be licensed to do so by the FSCA. The FSCA wishes to inform the public that Capital Pro is not authorised as an FSP in terms of the Financial Advisory and Intermediary Services Act (FAIS) to provide financial advisory and intermediary services. Capital Pro is also not registered as an Over-the-Counter Derivative Provider in terms of the Financial Markets Act. 

5. Beyond Options FX

It has come to the attention of the FSCA, that Beyond FX is offering the South African public access to its online platform to trade in forex and contracts for difference (CFDs). 

In addition, Beyond FX's website indicates that it is globally regulated and licensed to provide services in 27 countries, including South Africa.

For an entity to trade in or offer financial products on behalf of clients in South Africa, such an entity must be licensed to do so by the FSCA. 

The FSCA wishes to inform the public Beyond FX is not authorised as a FSP in terms of the Financial Advisory and Intermediary Services Act (FAIS) to provide financial advisory and intermediary services. Beyond FX is also not registered as an Over-the-Counter Derivative Provider in terms of the Financial Markets Act. 

6. Livestock Capital Funds Pty (Ltd)

It has come to the attention of the FSCA, that Livestock Capital provided a client with a document purporting to be an FSCA license, with Financial Services Provider (FSP) number 98832. According to the records of the FSCA, FSP license 98832 does not exist.