FSCA flags MyWealth Legatus

Like a relay race, the operations of the disgraced MyWealth Method and MyWealth DIAS appear to have been picked up by MyWealth Legatus (Pty) Ltd.

This month, the FSCA advised the public to act with caution when conducting financial services business with MyWealth Legatus, stating that the Authority suspects the entity may be conducting unregistered financial services and/or the business of a bank by taking deposits from members of the public.

The warning comes three months after the FSCA imposed administrative penalties of more than R73 million on the entity’s sister companies: My Wealth Method and My Wealth DIAS. The FSCA press release issued on 15 March also announced the debarment of director Charl Coetzee for 20 years.

Read: MyWealth entities fined R73 million and founder debarred for 20 years

The FSCA’s investigation found that MyWealth Method and MyWealth DIAS sold shares to the public without authorisation.

According to the FSCA, members of the public were convinced to buy MyWealth DIAS shares through the MyWealth Method platform by promises of unrealistic returns of up to 400% on their investments.

The investigation found that investors’ withdrawal requests were denied, causing them to lose their capital and returns.

The FSCA noted that there was no legitimate financial product or investment activity generating the purported returns, and MyWealth Method operated a Ponzi scheme, falsely claiming FSCA authorisation.

The Authority stated that MyWealth Method violated section 7(1)(a) of the FAIS Act, and both entities breached section 11(1) of the Banks Act.

Now, in an FSCA press release issued on 7 June, the Authority notes that “it has come to the attention of the FSCA that My Wealth Legatus may be carrying on the illegal business activities of My Wealth Method and My Wealth DIAS”.

The statement adds that the Authority is investigating My Wealth Legatus and its directors, Coetzee and Schalk Botha, to determine whether My Wealth Legatus and its directors are conducting unregistered financial services or banking activities.

According to the FSCA, My Wealth Legatus is not authorised in terms of any financial sector law and is not registered as a bank in terms of the Banks Act.

“As part of its modus operandi, My Wealth Legatus and its directors apparently influence the investors not to co-operate with the FSCA’s investigation,” the FSCA says.

The investigation is ongoing.

‘A unique solution’

A promotional video clip on MyWealth Legatus’s website describes the entity as “a financial alternative” to institutions and options designed to “serve shareholders, not people”.

“If you have capital or assets, we have a unique solution that will help you grow your finances exponentially. And if you’re struggling to make ends meet, we have the vehicles to get you started towards financial significance. We do this by providing a global wealth creation system that is built on simple ‘how-to’ strategies,” the video narrator shares.

Although flowery language, such as “family”, “community”, and “financial significance”, abounds on the website, no concrete information is provided on the entity’s various “market-specific tools and instruments designed to foster your success and prosperity” or how the performance of these “tools and instruments” have tracked since their launch.

Services listed under the section “How we Help” include neo-banking and asset offerings.

The website describes the MyWealth neo-banking suite as “a dynamic, innovative banking solution” that promises to move its clients “beyond the limitations of traditional banking systems”. It is said to offer a “comprehensive platform for financial transactions, asset management, and wealth accumulation”. It purports to offer clients access to a digital wallet, “effortless” local and global payments and transactions, and a multi-currency feature that enables clients to hold various global currencies.

Its asset offerings, which promise to make “your assets work so you don’t have to”, include an asset accumulation strategy (launched in 2021), an asset liquidity strategy (launched in 2022), and an asset loan strategy (launched in 2022).

The first harnesses “the power of compounding”, the second allows clients to “reap rewards” with its “dynamic blend of asset classes”, while the third constitutes “a self-paying loan”.

Hide and seek

Earlier this year, the FSCA stated that MyWealth Method and MyWealth DiAS were fraudulently displaying the FSP licences of My Wealth Financial Services (Pty) Ltd, with FSP number 49463, and Regenesys Investment Fund (Pty) Ltd t/a MyWealth Investments, with FSP number 45214.

At the time, the FSCA stated that My Wealth Financial Services and MyWealth Investments had both confirmed that there was no relationship between them and the investigated parties.

At present, the MyWealth Legatus website displays FSP No 45699, as well as a National Credit Regulator number NCRCP16940.

The first number is registered to MyWealth Services (Pty) Ltd, according to the FSCA’s search function. The provided address is Boardwalk Office Park, Phase 5, Block B, 107 Haymeadow Street, Faerie Glen, Pretoria.

The second number is registered to MyWealth Financial Services (Pty) Ltd, according to the NCR’s search function. The provided address is Private Bag 07, Faerie Glen, Pretoria.

According to the website, MyWealth Legatus SPC is headquartered in the Cayman Islands.

The address of the service centre in South Africa is given as Boardwalk Office Park, Phase 5, Block B, 107 Haymeadow Street, Faerie Glen, Pretoria.

No contact numbers or email addresses are provided on the website.