FSCA Warns Public Against Invest Markets and 24Option.com

The Financial Sector Conduct Authority (FSCA), South African financial markets regulator, has warned the public to act with caution when dealing with with Invest Markets and 24Option.com which are 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). 

The FSCA has received complaints from members of the public against Invest Markets and 24Option.com. According to the websites of Invest Markets and 24Option.com, it appears that they are based in Belize, providing trading platforms that offer trading in Forex, Contract for Difference (CFDs) derivatives, as well as cryptocurrencies.

The FSCA points out that for a company to offer CFD trading and forex trading in South Africa, it must be licensed to do so by the FSCA. It therefore appears that these two platforms are conducting unregistered financial services business, which is unlawful.

The website of Invest Markets states the following: "This website (www.investmarkets.com/international) is operated by Arvis Capital Limited, a Belize investment firm, authorised and regulated by the International Financial Services Commission of Belize…" Of importance is that Invest Markets and 24Option.com still requires South African licences to operate locally. 

The FSCA warns that members of the public should always check that an entity or individual is registered with the FSCA to provide Financial Advisory & Intermediary Services and what category of advice it is that the entity is registered to provide. 

It again reminds consumers who wish to conduct financial services with an institution or person to check beforehand with the FSCA as to whether or not such institution or person is authorised to render financial services.