FSCA Warns the Public Against Fraudsters Impersonating Citadel Investment Services

The Financial Sector Conduct Authority (FSCA) warned the public to act with caution when dealing with a WhatsApp group which is using the name Citadel Investment Services. 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.

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The WhatsApp group is soliciting investments from people and promising unrealistic and excessive returns. They are using the name of a legitimate financial services provider, Citadel Investment Services (Pty) Ltd FSP number 547 (CIS), in order to appear to be doing legitimate financial services business.

CIS is a subsidiary of Citadel Holdings (Pty) Ltd and a fellow subsidiary of many other companies, some of which are also registered financial services providers. The administrators of the WhatsApp group have copied and uploaded content from CIS's social media platforms onto the WhatsApp group, utilised photographs of staff members and have copied CIS's logo in order to lend false legitimacy to their scam.

CIS has confirmed that they are in no way associated with the WhatsApp group. It is the FSCA's view that these individuals are conducting unregistered financial services business and providing advisory and intermediary services without the necessary authorisation.