FSCA Warns Public Against Platinum Financial Services Group

The Financial Sector Conduct Authority (FSCA), South African financial markets regulator, has warned the public to act with caution when dealing with Platinum Financial Services Group.

Platinum is not authorised to render any financial advisory and/or intermediary services in terms of the Financial Advisory and Intermediary Services Act No. 37 of 2002(FAIS Act). The FSCA received information from a member of the public that has raised material concerns with the FSCA.

Platinum offers investments to members of the public with a monthly return of 5%. It is also alleged that Platinum offers commission of 2% on all investment referrals.

The FSCA is of the view that Platinum is likely conducting financial services business and requires a Financial Services Provider licence from the FSCA. It is also highly likely that they are conducting unregistered business, which is a criminal offence.

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.