In a recent media release the Financial Sector Conduct Authority (FSCA) warns the public against Crowd1, an entity which is not authorised to render the financial services it is providing. “Crowd1 is neither an authorised Financial Service Provider (FSP), nor is it a representative of an authorised FSP. There is also no record of this entity having applied for a license with the FSCA.”
The Prudential Authority also said it has been investigating Crowd1, part of Impact Crowd Technology group, since last month – looking specifically into whether it is a deposit-taking organisation. “The Prudential Authority decided to start investigating the group after receiving several complaints from the public regarding its activities in SA.”
“While it is true that all investments hold risk, one with an unauthorised FSP should be considered extremely high-risk. It is also often fraudulent in nature, and likely to lead to losses for customers, for which there is little or no recourse,” the FSCA advises.
Click here to read the FSCA media release.
Click here to read the Biznews article that also references an article that was published in last Sunday’s Rapport newspaper.
Financial Advisers should encourage their clients to always be cautious when investing in alternative financial or investment products. It is particularly disturbing that online newsletters allow advertising of such schemes, often using the names of prominent celebrities. What on earth happened to ethics?
