The Financial Sector Conduct Authority is urging the public to be vigilant when encountering unsolicited investment opportunities, particularly on social media platforms, and when considering funeral service policies.
Recently, the FSCA issued several warnings about unauthorised financial services and funeral policies being offered to the public.
The Authority said Felicitie Jacobs is apparently soliciting funds from members of the public for investment purposes, while promising unrealistic returns.
“It appears that she may be offering financial services by presenting investment opportunities with guarantees of profit,” the Authority states.
Jacobs, who has described herself as “a trader in volatility and synthetic indices”, is not authorised to provide financial products or services. “Moreover, the FSCA notes that profits from trading activities, especially those involving volatile markets, cannot be guaranteed,” the Authority states.
Despite attempts by the FSCA to engage with Jacobs for her comments, she has not responded.
CMC Markets Investment
The FSCA warns the public to be cautious when conducting financial services business with CMC Markets Investment.
The FSCA notes that CMC Markets may be offering financial services without the required authorisation.
According to the Authority, CMC Markets uses Telegram groups to solicit investment, offering guaranteed and unrealistic returns. Specifically, the entity has been promising returns of up to R448 800 from an initial investment of R48 500 within four days.
“While the FSCA does not comment on the specifics of CMC Markets Investment’s business, it must be noted that CMC Markets Investment is not authorised in terms of any financial sector law to provide financial services to the public,” the Authority states.
The FSCA could not contact CMC Markets for comment.
Grant Julius Funeral Directors
The FSCA advises the public to exercise caution when considering funeral insurance policies from Grant Julius Funeral Directors (Pty) Ltd.
The FSCA received a complaint that Grant Julius Funeral Directors may be issuing insurance policies that were possibly not underwritten by an authorised long-term insurer.
“We attempted to contact the entity without success, and during a site visit to the registered address of Grant Julius Funeral Directors, we were informed that the director had passed away,” the Authority states.
Without commenting on the business of Grant Julius Funeral Directors or its products and services, the FSCA points out that for a company to issue insurance policies in South Africa, it must be authorised by FSCA and the Prudential Authority.
“Conducting financial services business or insurance business without a licence is a criminal offence. Grant Julius Funeral Directors is not so authorised and does not hold a licence from the FSCA to conduct financial services business,” the Authority states.
Finworth Funeral Insurance
The FSCA has received a complaint that Finworth Direct (Pty) Ltd, trading as Finworth Funeral Insurance, may be issuing funeral insurance policies that are not underwritten by an authorised long-term insurer.
The Authority has raised concerns about the legitimacy of these policies and is investigating the matter.
“We conducted a site visit at the Finworth Funeral Insurance’s premises in Vereeniging. The offices were closed, and it seemed that no one had been present for an extended period. It appears that the entity has ceased operations,” the Authority states.
Finworth Funeral Insurance does not hold a licence from the FSCA to conduct financial services business.
Magoda Funeral Parlour
The FSCA has received a complaint about Magoda Funeral Parlour (Pty) Ltd, which may be issuing funeral insurance policies not underwritten by an authorised long-term insurer.
The authority is looking into the matter, because these actions could potentially violate regulations governing financial services.
“The FSCA attempted to visit the premises indicated as the business address of the parlour, but it transpired that it was a residential property, and the residents had no knowledge of the parlour,” the Authority states.
Magoda Funeral Parlour does not hold a licence to conduct financial services business.
Check before you invest
The FSCA says members of the public should always check the following:
- That an entity or individual is authorised by the FSCA to provide financial products and services, including for providing recommendations about how to invest.
- The category of advice the person is registered to provide, because there are instances where companies or people are registered to provide basic advice for a low-risk product but advice on far more complex and risky products.
- That the FSP number used by the entity or individual offering financial services matches the name of the FSP on the FSCA’s database.
You can check whether an entity or person is authorised to provide financial products and services by:
- Phoning 0800 110 443 (toll-free)
- Conducting an online search for an authorised financial institution by licence category: https://www.fsca.co.za/Regulated%20Entities/Pages/List-Regulated-Entities-Persons.aspx
- Conducting an online search for a financial institution that is an authorised FSP: https://www.fsca.co.za/Fais/Search_FSP.htm
